Datavault: A Speculative AI Play, But Beware of Volatility

Key Points

• Datavault is emerging as an AI play worthy of a speculative position.
• Deals with blue chips like IBM have set it up for success.
• Short sellers and tepid market support are risky for investors in Q4 2025.

Datavault NASDAQ: DVLT is certainly not without risks, including funding and reverse stock splits. However, a series of recent events suggests that this emerging next-gen technology is worth a look, if not a position, in speculative portfolios. What is it?

Datavault is blurring the lines between cryptocurrency and traditional technologies by combining blockchain and AI, enabling businesses to visualize and monetize their data. 

The September/October stock price increase drivers include funding deals with Scilex Holding Co. NASDAQ: SCLX and International Business Machines NYSE: IBM. Scilex is injecting $150 million in two tranches, transferring the value via Bitcoin at spot rates.

The money is intended for infrastructure projects and expanding existing platforms to enhance utility and scalability.

IBM’s contribution will be more intellectual in nature, including 20,000 hours focused on platform growth, scalability, and driving enterprise adoption. 

Enterprise adoption of the technology is a critical factor driving a robust outlook for revenue growth. The company is in the early phases of a hypergrowth period, expected to increase its revenue by a high triple-digit amount this year and next and then by a high double-digit figure in F2027, with all forecasts likely to be low.

Acquisitions like NYIAX, a blockchain-based trading service for advertisers, will ensure that. The NYIAX acquisition expands upon an earlier agreement, enabling Datavault’s client to list and exchange their data assets on the NYIAX exchange. 

Market Support for Datavault Is Shaky in Q3

Data from MarketBeat shows that Datavault’s market support was shaky in Q3. The stock price increase is entirely due to retail traders, with minimal activity from analysts and institutions. The analyst trends are tepid and mixed, with only three tracked by MarketBeat, the most recent rating a Sell issued by Weiss Ratings in October, and institutional ownership of less than 1.0%.

The offset is that analysts’ consensus is a Hold rating, forecasting 260% upside, with the stock trading well below the lowest target. The low end is $3.00, which is sufficient for 57% of the upside as of mid-October. 

The risk for buyers in October is the short interest. As of late September, the short interest in this low-float stock was more than 20%, up 15% sequentially and trending near historical highs.

This is a significant headwind for the market that could not only cap gains but also cause a correction. With no analysts or institutional support, this stock could retreat to the $1.50 level or lower as its market winds up ahead of the upcoming earnings release. 

Datavault is scheduled to report fiscal Q3 2025 revenue in early November. The forecast is for a 200% sequential increase, or 400% year-over-year, driven by the launch of new data exchanges and the licensing of its intellectual property.

The question is how quickly the exchanges are gaining traction, and how the longer-term outlook has been affected. 

Capitalization and Dilution Are Why the Short Sellers Are Interested

The company’s balance sheet remains in a healthy condition, with total assets less than equity, but there are red flags investors should note. Among them is the decrease in cash and current assets despite rising debt levels and an increased share count.

While the Scilex and IBM deals help mitigate some risk, Datavault will likely have to lean into capital-raising efforts before it has a clear line of sight to profitability. Until then, investors should expect short-sellers to stay in the market and keep the volatility high, at the very least. 

The price action is promising, revealing an upswing supported by rising volume and MACD convergence. However, the market is in a pullback that may keep it under pressure in the near term. The critical support is near $1.90; a move below could lead to a decline to $1.50 or lower.