Shares in DarkIris Inc. (DKI), the Hong Kong-based mobile game developer, soared 142.67% on Thursday. This followed the company’s move to expand its platform into a technology-plus-entertainment ecosystem that leverages artificial intelligence-generated content (AIGC) for gaming and film production.
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Why Retail Traders Are Bullish on DKI
However, it also comes as retail traders are betting that DKI stock could extend its surge, helped by its relatively few freely tradable shares. Some also see this tight float, combined with short-selling activity, as likely to force additional buying that keeps DKI’s rally going — the shares are up 255% over the last five days.
Moreover, traders are comparing this potential setup to that seen recently in Chinese new energy vehicle and battery-swapping station developer U Power Limited (UCAR). UCAR stock has jumped nearly 300% over the past five days.
DarkIris Launches AI R&D Hub in Singapore
In terms of the company update also driving the stock, DarkIris on Thursday launched Aether Intelligence Pte Limited in Singapore. The new entity is to serve as its global research and development headquarters, with its hub to mainly focus on helping DarkIris to shift towards AIGC and specialized artificial general intelligence (AGI)-powered content creation across gaming and film.
AGI refers to AI systems that deliver human-level intelligence. DarkIris noted that it will use both technologies to help reduce the high-cost and lengthy development cycles involved in content creation, targeting areas such as script generation, 3D modeling and texturing, as well as intelligent storyboarding.
The company sees the new hub as representing the completion of its “strategic transformation from a traditional gaming business into an AI-driven pan-entertainment technology ecosystem.” Furthermore, it believes the hub will support its plan of becoming an open Model-as-a-Service and Platform-as-a-Service company.
Is DKI Stock a Good Buy?
TipRanks’ technical indicators flag DarkIris’ shares as a Strong Sell based on signals logged over the past month. This is based on two Bearish signals flashed during this period.
Moreover, as a penny stock, DKI is considered highly volatile.
