The world’s best-performing stock is turning into a cautionary tale for investors chasing outsized returns from the AI boom.
RRP Semiconductor Ltd., which until recently was a little-known stock, has become a social-media obsession as its share price surged more than 55,000% in the 20 months through 17 December—by far the biggest gain worldwide among companies with a market capitalisation of more than $1 billion.
That’s despite posting negative revenue in its latest financial results, reporting just two full-time employees in its latest annual report, and boasting only a tenuous link to India’s chip-manufacturing ambitions.
A mix of online hype, a tiny free float and India’s swelling base of retail investors locked the stock at the upper circuit for 149 consecutive trading sessions, even as stock exchange officials and the company itself cautioned investors.
Here’s the story of RRP Semiconductor, first reported by Bloomberg News.
RRP Semiconductor, formerly GD Trading & Agencies, is the subject of intense market scrutiny following a world-beating 55,000% stock surge over the last 20 months. While the company is positioning itself as a major player in India’s semiconductor mission, its financial fundamentals and regulatory status have raised significant “bubble” concerns.
Financial Performance & Market Reality
Despite a market capitalisation exceeding ₹15,000 crore, the company’s actual operations remain in a nascent stage.
- Negative Revenue: For the July-September 2025 quarter, the company reported negative revenue and a net loss of approximately ₹7 crore.
- Minimal Workforce: According to its latest annual report, the company has only two full-time employees, which is highly unusual for a firm valued at over $1.7 billion.
- Valuation Extremes: The stock has been trading at a price-to-book ratio of over 1,600, making it one of the most expensive stocks globally relative to its assets.
Regulatory Heat & Trading Restrictions
The volatility in RRP Semiconductor’s share price has triggered red flags for regulators and exchanges. Reports indicate that the Securities and Exchange Board of India has begun examining the stock for potential wrongdoing or price manipulation.
Trading Curbs: The Bombay Stock Exchange recently restricted the stock to trading just once a week to curb volatility. It has also faced multiple “limit-up” sessions followed by sharp corrections as the exchange sought clarifications on price movement.
Ownership Structure: The promoter holding is noted to be extremely low at around 1.27%, though founder Rajendra Chodankar has a significantly larger stake in the private related entity, RRP Electronics.
The RRP Electronics Connection
There is often confusion between the listed entity RRP Semiconductor and the private venture RRP Electronics.
- OSAT Facility: RRP Electronics claims to be setting up a ₹12,035 crore Outsourced Semiconductor Assembly and Test facility in Maharashtra. The group has signed MoUs with global firms like Deca Technologies and HMT Zurich for technology transfers.
- Recent Denials: The company recently issued a clarification to the BSE denying rumours that cricket legend Sachin Tendulkar had subscribed to its shares and clarified that it had not yet received 100 acres of land from the Maharashtra government, contrary to some claims on social media.
The weak financials and social-media scrutiny come at a delicate time for the stock. With the hype around AI fading and regulatory scrutiny tightening, the downside now sits with investors who piled in—and with Chodankar, who controls nearly the entire float.