Key Highlights

  • iPower Inc. (NASDAQ:IPW) traded about 11.9% higher near USD 2.73 in early trading on Monday, October 26, 2026, the date of its announced 1-for-12 reverse stock split.
  • A reverse split cuts the share count and lifts the quoted price in proportion, so the price level seen on Monday is not comparable with levels seen before the split.
  • On Thursday, October 15, 2026 the company announced a five-year services letter of intent targeting USD 21.90 million of potential annualised services, tied to a new artificial intelligence direction.
  • The company announced the split on Thursday, October 22, 2026, and the letter of intent is non-binding, so revenue from it is not assured.

A Reverse Split Day with an AI Narrative

iPower Inc. (NASDAQ:IPW), a company known for online hydroponics and home and garden supplies, announced on Thursday, October 22, 2026 a 1-for-12 reverse stock split, dated for Monday, October 26, 2026. Under a 1-for-12 split every 12 existing shares become one, so a price of USD 2.73 corresponds to about USD 0.23 on the old basis. The shares were up about 11.9% in early trading on that day, and prices are intraday. The company has not issued a separate release explaining the move beyond the split. A week earlier, on Thursday, October 15, 2026, it announced a five-year services letter of intent targeting USD 21.90 million in potential annualised services.

How a Reverse Split Changes the Screen

A reverse split does not change the value of a holding: the number of shares falls and the price rises in the same proportion. Companies usually use the step to lift a low share price, often to satisfy an exchange minimum bid requirement of USD 1.00, although the company's release should be read for its stated purpose. Early trading after a split is often thin and volatile, because market data providers adjust historical prices at different times, and a quoted percentage change can reflect that adjustment. Fewer shares also usually mean a smaller float, which can widen price swings. The letter of intent adds a growth narrative, since USD 21.90 million of annualised services would be large relative to a micro cap.

Risks and What to Watch

The first risk for iPower Inc. (NASDAQ:IPW) is that the letter of intent does not become a binding contract, or that its volume and timing change. The second is post-split trading, because reverse splits are often followed by weaker prices when dilution or low liquidity returns. The third is the underlying business, where tariffs and consumer demand have pressured margins for importers of home and garden products. Investors should watch for a definitive agreement on the services contract, any financing that follows the split, the Federal Reserve decision on Wednesday, October 28, 2026 and the next quarterly report, for which the company has yet to give a date.

Where Things Stand

The answer is that iPower Inc. (NASDAQ:IPW) rose about 11.9% on the day of its 1-for-12 reverse split, with the AI services letter of intent of October 15, 2026 as the only recent company catalyst, and the percentage move may partly reflect split adjustment. The next catalysts are a definitive services agreement, the Federal Reserve decision on October 28, 2026 and the quarterly report. Split-adjusted prices are mechanical, letters of intent are not contracts, and this is not investment advice.