Algorhythm Holdings experienced a notable surge in its stock value after its subsidiary, SemiCab, secured an expanded agreement with Apollo Tyres, a major player in the global tire manufacturing industry. This strategic development positions SemiCab to significantly increase its revenue through advanced AI-driven logistics solutions across India.
SemiCab's Strategic Expansion with Apollo Tyres Boosts Algorhythm Holdings' Market Performance
On Tuesday, January 7, 2026, Algorhythm Holdings Inc. (NASDAQ: RIME) witnessed a remarkable 28.7% increase in its after-hours trading, with its stock price reaching $1.57. This upward momentum followed a 19.61% rise during the regular trading session, closing at $1.22. The catalyst for this impressive performance was the announcement that SemiCab, an AI technology-focused subsidiary of the Florida-based Algorhythm Holdings, had broadened its master services agreement with Apollo Tyres Ltd. Apollo Tyres, a prominent Indian tire manufacturer boasting over $5 billion in annual sales and ranking among the top ten globally, is set to benefit from SemiCab's advanced transportation solutions. The expanded contract outlines SemiCab's provision of managed transportation services across 20 key, densely populated corridors in India. This will lead to an increased frequency of shipments and is anticipated to generate up to $2.5 million in annual revenue for SemiCab. This partnership builds upon a successful commercial pilot program initiated in September 2024. SemiCab's platform, an AI-enabled, cloud-based Collaborative Transportation Platform, is engineered to streamline freight logistics by reducing service expenditures, enhancing delivery precision, and minimizing 'empty miles' in transportation. It also offers real-time tracking capabilities and seamless integration with existing Transport Management Systems (TMS) for automated processes like indenting and invoicing, along with live shipment visibility. Ajesh Kapoor, CEO of SemiCab Holdings, LLC, emphasized the profound impact of this collaboration, stating it marks a significant stride towards transforming freight logistics in India. Despite a challenging 12-month period where the stock saw a 97.31% decline, indicating a prevailing cautious sentiment among traders due to a negative long-term trend, the current trading metrics reveal a market capitalization of $3.32 million. The stock is currently trading near its 52-week low of $0.94, a considerable distance from its 52-week high of $67.72. Positioned at merely 0.42% of its 52-week range, there is a potential for a market rebound should investor confidence and buying interest reignite.
This significant expansion of SemiCab's partnership with Apollo Tyres underscores the growing importance of AI and advanced technological solutions in transforming traditional logistics and supply chain management. The projected revenue growth for SemiCab and the positive market reaction to Algorhythm Holdings highlight how innovative collaborations can drive substantial value in competitive global markets. It also serves as a testament to the potential for technology to optimize operational efficiency and create new opportunities within established industries. Investors will likely watch closely to see if this rebound continues and if the long-term trend for RIME can be reversed.