Datavault AI (DVLT) stock closed more than 20% higher on Dec. 31 after the artificial intelligence (AI) data science firm confirmed plans of issuing a special dividend in the form of warrants.
DVLT has announced Jan. 7 as the record date but is yet to reveal the distribution date. According to its press release, each of these warrants will carry a strike price of $5 and be exercisable for cash.
Despite today’s surge, Datavault stock is trading about 80% below its 52-week high set in October 2025.
DVLT shares soared on the special dividend announcement as it signals management’s confidence in the company’s long-term prospects.
A strike price of $5 on the to-be issued warrants reassures investors that insiders see massive upside ahead. Plus, since these warrants are exercisable for cash only, Datavault AI doesn’t run a risk of dilution either.
All in all, the announcement may help stabilize sentiment after recent volatility – offering existing shareholders a tangible incentive to remain invested.
If DVLT paired it with significant updates at the CES, 2026 may just mark a turning point for its battered equity narrative.
While Datavault AI remains in the penny stock territory, which makes it a high-risk bet, there’s reason to believe that it will prove a high-reward investment instead over time.
For starters, the Nasdaq-listed firm is growing at an exceptional pace. In the latest reported quarter, DVLT saw its revenue soar nearly 150% on a year-over-year basis to $1.17 million.
Moreover, the company’s forward-looking partnerships like the “Dream Bowl” broadcast deal signal significant monetization potential.
In terms of technicals, the AI stock has its near-term relative strength index (14-day) at roughly 38 currently, indicating bearish momentum is now coming to a halt.
DVLT stock currently receives coverage from one Wall Street analyst only, which isn’t particularly a beacon of strong institutional confidence.
However, investors could take heart in the fact that that one analyst at least rates it at “Strong Buy” with a price target of $3, indicating potential upside of more than 250% from here.