• U.S.-listed shares of Xiao-I Corp. surged over 20% in premarket trading on Tuesday, following a blistering 515% surge on Monday.
• China's Supreme People's Court rejected Apple's application to have Xiao-I's VIE patents invalidated, affirming their validity in full.
• Xiao-I received two Nasdaq non-compliance notices last week over its minimum bid price.

Shares of Xiao-I Corp. (AIXI) are extending one of the most dramatic rallies in the stock's history. After surging 515% on Monday, its best single session on record, the Shanghai-based AI company's stock added nearly 40% more in premarket trading on Tuesday, leaving the stock just about 4 cents shy of the $1 level it last traded at in early November 2025.

What's Behind AIXI Rally

The catalyst is a significant legal win against Apple. On Monday, Xiao-I announced that China's Supreme People's Court had rejected Apple's application to have its VIE patents declared invalid, affirming their legality and validity in full. The underlying patent infringement lawsuit, which centers on claims that Apple used Xiao-I's core AI technology without permission, has progressed through multiple legal stages, including hearings at the Shanghai High People's Court in 2024, before Apple's appeal was ultimately dismissed at the Supreme Court.

Xiao-I develops AI-powered business solutions through its subsidiaries, with capabilities spanning natural language processing, voice and image recognition, machine learning, and affective computing.

AIXI Nasdaq Compliance Overhang

Last week, Xiao-I disclosed that it had received two non-compliance notices from Nasdaq's Listing Qualifications Department. The notices flagged that the company's American Depositary Shares had closed below the $1.00 minimum bid price required under a Nasdaq Listing Rule for 30 consecutive business days between Nov. 3 and Dec. 15, 2025. Reclaiming and holding the $1 level would be a meaningful step toward resolving that compliance issue. No Wall Street analysts currently cover the stock.

Retail Reaction To AIXI Stock

Retail sentiment score on AIXI reached its highest reading in a year (98/100) heading into Tuesday's open. Message volume surged 2,700% over the past 24 hours, while the stock's follower count jumped nearly 44%, signaling a rapid wave of fresh retail interest in the name.

"I'm up +$740K and I AM NOT YET SELLING," posted one bullish user.

Another user was a bit more cautious. "Remember. They will try to shake us out around opening time. Enjoy the ride," they posted, indicating possible profit-taking at the market open on Tuesday.

Year-to-date, AIXI stock has nearly doubled.

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