On Tuesday, shares of Algorhythm Holdings Inc. (NASDAQ: RIME) registered a substantial gain in after-hours trading, ascending by 28.7% to reach $1.57 per share. This followed a 19.61% increase during the regular trading session, closing at $1.22. Investors are showing renewed interest in the stock despite its prolonged downturn over the past year.
Algorhythm Holdings attributes this upward momentum to a significant expansion of the contractual partnership between its Georgia-based subsidiary, SemiCab, and Apollo Tyres Ltd., a prominent tire manufacturer in India. Apollo Tyres, recognized as the second-largest tire producer in India with annual revenues exceeding $5 billion, is also ranked among the top ten global tire industry competitors.
The enhanced agreement obligates SemiCab to deliver managed transportation services across 20 densely populated freight lanes within India. This expansion is expected to facilitate a higher frequency of shipments and broaden SemiCab's operational reach. According to information provided by Algorhythm Holdings, this extended contract has the potential to generate up to $2.5 million in annual revenue for SemiCab.
Earlier this year in September 2024, SemiCab initiated a commercial pilot program with Apollo Tyres, marking the beginning of their collaboration. The company's managed transportation services leverage SemiCab's AI-enabled, cloud-based Collaborative Transportation Platform. This technology aims to reduce operational costs, enhance delivery accuracy, and minimize empty miles — addressing key inefficiencies commonly found in freight logistics.
The platform's integration capabilities include live shipment tracking and compatibility with existing Transportation Management Systems (TMS), enabling automated indenting and invoicing as well as real-time visibility of freight movements. Ajesh Kapoor, CEO of SemiCab Holdings, described the partnership as a significant progression toward transforming freight logistics in India.
Despite the recent uptick, Algorhythm Holdings has endured a sharp downward trajectory over the previous twelve months, witnessing a decline of 97.31%. The company’s market capitalization stands at approximately $3.32 million. Within the past 52 weeks, the stock has ranged between a high of $67.72 and a low of $0.94, with the current price positioned at roughly 0.42% of this range, indicating proximity to its recent lows.
Market analysts reflect caution on RIME’s longer-term outlook, as the stock shows negative price trends across short, medium, and long-term time frames according to Benzinga’s Edge Stock Rankings. This suggests that while short-term volatility and recent contract news provide some upward pressure, underlying concerns remain among traders regarding the stock’s sustained recovery potential.
The Relative Strength Index (RSI) for Algorhythm Holdings is at 43.04, a metric that usually indicates neither overbought nor oversold conditions, implying that momentum could pivot in either direction depending on forthcoming developments. Overall, investor sentiment remains measured against the backdrop of significant historic losses.