Algorhythm Holdings Inc (NASDAQ:RIME) is exploding higher Friday, extending Thursday's stunning surge. The AI company claimed its SemiCab trucking platform could radically reshape freight operations.

• Algorhythm shares are powering higher. Why is RIME stock up today?

What The Company Announced

Algorhythm said its SemiCab platform — an AI‑driven optimization system built for shippers and carriers — allows customers to scale freight volumes by 300% to 400% without adding staff. According to the company, individual operators using SemiCab can manage more than 2,000 loads a year, compared with the industry norm of about 500 loads per broker.

The platform automates network‑level planning and decision‑making, which Algorhythm says lowers cost per load, reduces administrative work and boosts asset utilization as volumes grow.

The Market Chaos That Followed

The Wall Street Journal reported that Algorhythms’ announcement triggered a dramatic selloff across the freight industry. C.H. Robinson Worldwide Inc (NASDAQ:CHRW) plunged 15%, Landstar System Inc (NASDAQ:LSTR) suffered a 16% drop — its worst day ever — and J.B. Hunt Transport Services Inc (NASDAQ:JBHT) fell 5%.

The Dow Jones Transportation Average sank 4%, its worst session since April, with 17 of 20 components finishing lower and roughly $17.4 billion in market value erased by the close.

A company worth less than $3 million, with no U.S. software customers, managed to spark one of the sector's worst days in years. "When names like C.H. Robinson are dropping billions of dollars of market cap, it's quite staggering," Algorhythm CEO Gary Atkinson told the WSJ.

RIME Price Action: Algorhythm shares were up 16.67% at $1.26 at the time of publication on Friday, according to Benzinga Pro.

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