New York, February 13, 2026, 18:36 EST — After-hours
- Algorhythm Holdings surged $2.42 to $3.48 in after-hours trade, up roughly 228% following a wild session.
- The company points to fresh SemiCab results, claiming freight volumes are up 300%–400%—and all without hiring more people.
- The release set off an “AI scare trade,” sending freight broker and trucking stocks lower this week.
Algorhythm Holdings (RIME.O) jumped $2.42, or roughly 228%, to $3.48 in Friday’s after-hours session. The stock whipsawed between $1.13 and $6.21 during the day, with volume hitting around 161.5 million shares.
The surge has left the small Nasdaq-listed company right in the spotlight of the “AI scare trade,” a wave that’s seen investors bail on shares exposed to automation risk—software, insurance, real estate among them. Trucking and logistics bore the brunt Thursday: the Dow Jones Transportation Average plunged 4.4%, and freight players like Landstar System and C.H. Robinson got hit following chatter over Algorhythm’s SemiCab. Jefferies analysts later called the drop “disconnected from fundamentals,” pointing to “proprietary freight data and physical networks” as strong defenses. (Reuters)
Algorhythm—once known for karaoke machines—said this week that SemiCab enabled customers to ramp up freight volumes by 300% to 400%, all “without a corresponding increase in operational headcount.” Jefferies trader Jeffrey Favuzza called the tape “shoot 1st ask questions later” on any stock with an AI headline, reflecting the recent surge in generative AI breakthroughs. (Reuters)
Brokers have a simple concern. Freight brokers connect shippers and carriers, stepping in when things go off-script; but as software takes on more of those tasks, investors are rethinking just how much these middlemen should make per load.
Algorhythm is touting a new industry white paper connected to its SemiCab rollout, saying its users are handling over 2,000 loads a year—far above the sector standard of around 500 for each broker. The company claims this marks a clear break from the old “human bandwidth” bottleneck in logistics. “Every increase in volume requires more planners, more dispatchers, and more manual intervention,” CEO Gary Atkinson said in the statement. (GlobeNewswire)
Some on Wall Street aren’t buying the notion that a small newcomer can topple the industry heavyweights overnight. Benchmark’s Christopher Kuhn flagged disintermediation of truck brokers as the real issue—“which is why they’re getting hit so much,” he said. Barclays’ Brandon Oglenski, cited by Bloomberg via SupplyChainBrain, described the selloff as “disproportionate to the risk.” Over at Citigroup, Ariel Rosa voiced skepticism that Algorhythm is the disruptor to watch, though he conceded the broader threat is credible. (Supply Chain Brain)
Still, there’s a flip side for Algorhythm holders. Shares are swinging on the back of a self-published white paper and splashy headlines—no audited financials in play—and Friday’s volatile range made it clear how momentum can flip in a microcap crowded with retail traders and quick-trigger capital.
With U.S. stock markets shuttered for Presidents Day on Monday, February 16, traders have a long weekend to mull their positions. The next shot at price discovery comes on Tuesday—when it’ll be clearer if enthusiasm over AI, and the pressure on freight brokers, lingers. (Nasdaq)
Algorhythm’s immediate hinge point is straightforward: investors want specifics. Eyes are on any new info about SemiCab deployments, updates on customer uptake, and signs that management can substantiate its productivity promises as the stock moves into Tuesday’s session.
