MicroAlgo Inc. (MLGO) Soars 300% on AI Earnings Beat

MicroAlgo Inc. (NASDAQ: MLGO) has captured significant attention in the financial markets with a colossal 300% surge in its stock price during the second quarter of 2025. This meteoric rise has positioned MLGO as a high-risk, high-reward speculative play, drawing interest from retail and institutional investors alike.

MicroAlgo Inc. reported its Q1 2025 earnings on May 2, 2025, which served as a pivotal moment for the stock. The company posted revenue of $15.2 million, a 10% increase year-over-year, driven by growing demand for its AI and quantum computing solutions. Earnings per share (EPS) came in at $0.03, surpassing analyst expectations of $0.01 by a significant margin. This earnings beat was a key catalyst for the initial surge in MLGO’s stock price, as investors began to recognize the company’s potential in the rapidly expanding AI sector. The strong cash position of $25 million, with minimal debt, further bolstered investor confidence, signaling financial stability for future growth initiatives.

Analysts are anticipating MLGO’s Q2 2025 earnings, scheduled for release on August 7, 2025, to reflect continued momentum. The Zacks Consensus Estimate projects an EPS of $0.04 and revenue of $16.8 million, representing a 12% year-over-year revenue increase. The company’s focus on quantum technology and AI-driven algorithms is expected to drive further adoption across industries such as finance, healthcare, and logistics. Positive revisions in earnings estimates, with the consensus EPS rising by $0.02 in the past 30 days, underscore growing optimism about MLGO’s profitability.

A significant driver of MLGO’s 300% surge was its announcement of a 30-for-1 reverse stock split, approved at an Extraordinary General Meeting (EGM) on July 2, 2025. This followed a 20-for-1 reverse split in late 2024, aimed at increasing the share price to meet NASDAQ listing requirements and attract institutional investors. The reverse split, combined with a $35 million convertible note offering announced on July 1, 2025, provided MLGO with enhanced liquidity to fund its algorithm platform rollout and quantum computing research. These moves sparked a 4% intraday surge on July 1, 2025, as retail investors anticipated further upside.

Another pivotal factor was WiMi Hologram Cloud’s decision to expand its stake in MicroAlgo, locking in shares for 10 years, as reported on June 28, 2025. This long-term commitment signaled strong confidence in MLGO’s technological roadmap, particularly its advancements in quantum algorithms and AI-driven data solutions. The announcement triggered a 6% intraday price increase, with trading volume surging past 11.39 million shares, reflecting heightened retail interest.

MicroAlgo’s focus on AI and quantum computing aligns with global trends in machine learning and automation adoption. The company’s proprietary algorithms, used in applications ranging from financial modeling to supply chain optimization, have gained traction in a market increasingly reliant on data-driven decision-making. Industry reports project the global AI market to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, reaching $1.81 trillion by 2030. MLGO’s niche in quantum technology, which promises exponential computational power, positions it as a speculative leader in this high-growth sector.