Artificial Intelligence Penny Stocks

 

Artificial Intelligence (AI) penny stocks represent a high-risk, high-reward segment of the stock market, where shares trade at relatively low prices — often below $5. These stocks are typically associated with small, yet innovative companies focusing on integrating AI into various products and services. For investors and traders, these stocks offer a speculative opportunity to get in on the ground floor of potential technological breakthroughs. However, due to their volatility and these companies’ early stage, they require rigorous analysis and a keen eye for market trends.

10 Best AI Stocks for [current_month] [current_year]

My best AI stocks to watch are:

• NYSE: PLTR — Palantir Technologies Inc — The AI Grinder That I’m Watching Everyday for Weak Open Red-to-Greens
• NASDAQ: PHUN — Phunware Inc — The Donald Trump Pump AI Penny Stock
• NASDAQ: POET — POET Technologies Inc. — The Optical AI Stock Partnering With Mitsubishi
• NASDAQ: APLD — Applied Digital Corp — The Data Center Stock With the NVDA Deal
• NYSE: IBM — IBM Common Stock — The Higher-Priced AI Stock That Ben Sturgill Is Watching
• NASDAQ: COMM — CommScope Holding Company, Inc — The Network Infrastructure Penny Stock
• NASDAQ: AAPL — Apple Inc — The AI Smartphone Catalyst Mega-Cap Stock
• NASDAQ: SERV — Serve Robotics Inc — The NVIDIA Partnership Robotics Penny Stock
• NASDAQ: NVDA — NVIDIA Corp — The Earnings Winner AI Sector Leader That’s Uptrending
• NASDAQ: APP — Applovin Corp — The IRIS Swing Pick That’s Back at All-Time Highs

AI was one of the hottest sectors in 2023… 

My students have watched hot runners like AMST, PBTS, POAI and more. More importantly, they’ve managed to stay safe because they remember the rules of trading…

These companies are leveraging AI technology and analytics to drive growth and innovation. But remember, just because a company is in the AI sector doesn’t mean it’s a good investment. Always do your research and make informed trading decisions.

AI penny stocks can be part of a diversified investment portfolio, offering a balance between traditional investments and the cutting-edge technology sector. They benefit from advancements in AI technology, which can lead to significant growth as new applications are discovered and implemented.

Here’s the AI stock cheatsheet:

• What is the most promising AI stock?

A sector leader like NVIDIA Corp (NASDAQ: NVDA) is the best bet for the most promising AI stock. But remember, we’re traders, not investors. So the stocks on this list are ones we’re watching for short-term moves, not predictions of which will lead stock exchanges in 2030.

• What are the top 3 AI stocks to buy now?

My top 3 AI stocks to buy now (as long as their price action is strong) are NVIDIA Corp (NASDAQ: NVDA), Palantir Technologies Inc (NYSE: PLTR), and Applovin Corp (NASDAQ: APP).

• Which company is most advanced in AI?

NVIDIA is the most advanced publicly traded company in AI, that’s why it’s the sector leader. But other leading tech stocks like Apple, Microsoft, Google, and Facebook are all safe bets to pull ahead at some point.

• Which Artificial Intelligence stocks have a “Strong Buy” analyst rating?

Analysts tend to love these tech leaders — NVIDIA, Apple, Microsoft, Google, and Facebook. Most analysts have rated all of these stocks as “strong buys.”

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model in this article. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

10 AI Stocks to Watch

My top AI stock picks for November — rated on chart pattern, price action history, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NYSE: PLTR	Palantir Technologies Inc	+ 150.66%
NASDAQ: PHUN	Phunware Inc	+ 71.39%
NASDAQ: POET	POET Technologies Inc	+ 301.68%
NASDAQ: APLD	Applied Digital Corp	– 2.87%
NYSE: IBM	IBM Common Stock	+ 28.00%
NASDAQ: COMM	CommScope Holding Company, Inc	+ 135.31%
NASDAQ: AAPL	Apple Inc	+ 21.69%
NASDAQ: SERV	Serve Robotics Inc	– 58.94%
NASDAQ: NVDA	NVIDIA Corp	+ 175.61%
NASDAQ: APP	Applovin Corp	+ 336.80%

You can see how the plan with AI penny stocks is rarely buy-and-hold…

Trading these penny stocks should be approached with a clear strategy and an understanding of the risks involved.

1. Palantir Technologies Inc (NYSE: PLTR) — The AI Grinder That I’m Watching Everyday for Weak Open Red-to-Greens

My first AI penny stock pick is Palantir Technologies Inc (NYSE: PLTR).

PLTR joined the S&P 500 ETF Trust (NYSE: SPY) on September 23.

That’s a big deal … The SPY is composed of 500 publicly-traded companies that lead the market.

Before the AI boom began, PLTR was trading below $10 per share. And it was significantly beat down due to the overall tech-sector weakness in 2022.

But in November 2024 … this is a sector leader in the software industry and it’s included in one of the market’s most popular indices!

Why I Like It

A lot of people get nervous when they see this stock, because they don’t want to buy an overextended runner, and the move over the last few months is already impressive.

Take a look at the chart below:

We don’t have to expose ourselves to the whims of the market.

The goal is to swing trade this runner using solid points of support and resistance. There’s a science to this!

And over 9 long months, I taught this trading process to an AI bot.

The patterns are the same … it was only a matter of time until the AI caught on!

Our AI tool, IRIS, is obsessed with this stock. PLTR’s been on the IRIS watchlist for months!

Plus, you don’t have to gamble on a random position. IRIS gives us smart trade plans that match my framework.

Use IRIS to build positions on PLTR.

2. Phunware Inc (NASDAQ: PHUN) — The Donald Trump Pump AI Penny Stock

My second AI penny stock pick is Phunware Inc (NASDAQ: PHUN).

PHUN is a tech company that helps businesses engage with mobile application audiences.

And of course, the company utilizes AI to increase efficiency. On June 20, 2023 the company launched its AI mobile-engagement system.

Why I Like It

The stock’s relationship with AI is a good catalyst … but right now I’m watching PHUN for a different reason.

The stock has a history of spiking with relation to Donald Trump.

It’s because the company helped Trump run his former campaign. Ever since, we’ve seen volatility from this stock connected to Trump.

For example, the price spiked 540%* in January this year in tandem with Trump Media & Technology Group Corp. (NASDAQ: DJT).

And in October, as we approached the November 5 election, prices spiked 330%*.

I’m also watching for volatility AFTER the election.

Whether Trump wins or loses, I expect volatility from this AI stock.

3. POET Technologies Inc. (NASDAQ: POET) — The Optical AI Stock Partnering With Mitsubishi

My third AI penny stock pick is POET Technologies Inc. (NASDAQ: POET).

On September 19, POET announced a partnership with Mitsubishi Electric to develop AI imaging technology.

By September 24 the price had spiked 80%!

Why I Like It

On the long-term chart we can see the price has been on an upward trajectory since April. It pushed higher one stair step at a time.

It shows that the price can follow support and resistance levels while pushing higher. That’s a great sign of tradeability.

If the price can push above resistance at $4.50, the 52-week highs from September are next … And then we’re off to the races.

4. Applied Digital Corp (NASDAQ: APLD) — The Data Center Stock With the NVDA Deal

My fourth AI penny stock pick is Applied Digital Corp (NASDAQ: APLD).

This is the most recent NVIDIA Corporation (NASDAQ: NVDA) investment stock.

We learned of NVDA’s position in APLD on September 5, and by late October the price had spiked 190%*.

Why I Like It

Just like the other NVDA-investment stocks …

• SoundHound AI Inc. (NASDAQ: SOUN)
• Serve Robotics Inc. (NASDAQ: SERV)

The price is capable of showing us follow-up volatility weeks and months after the initial catalyst.

Traders who neglect these stocks are actively missing out on profit opportunities!

Keep these NVDA investment stocks on your watchlist and wait for the price action to match our patterns!

5. IBM Common Stock (NYSE: IBM) — The Higher-Priced AI Stock That Ben Sturgill Is Watching

My fifth AI penny stock pick is IBM Common Stock (NYSE: IBM).

We’re approaching two years of this intense AI price action.

Some of the best AI plays are now trading A LOT higher than they were a year ago. And for savvy traders, there are still opportunities to profit off of these big stocks.

Why I Like It

IBM is a household name in the tech industry.

The company operates in 175 countries and employs 350k people.

On October 23 it announced Q3 earnings per share of $2.30 and a revenue of $14.9 billion.

This is a REAL company … compared to some of the penny stocks on this list.

Buying shares of larger stocks can be attractive because the companies have an actual history of financial success.

But a lot of small-account traders don’t have the money to buy shares of IBM, it’s trading above $200 right now.

Ben Sturgill, a trader in our community, has a solution!

>> Learn Ben’s trading strategy for higher-priced AI runners <<

6. CommScope Holding Company, Inc (NASDAQ: COMM) — The Network Infrastructure Penny Stock

My sixth AI penny stock pick is CommScope Holding Company, Inc (NASDAQ: COMM).

This is a different kind of play compared to bigger tech names on this list. But it can still deliver solid trading opportunities.

This chart already had its share of volatility in 2024. It spiked 530%* since July!

Why I Like It

This company helps other businesses increase their processing bandwidth and improve the overall performance of communication networks.

This has been a big issue for companies as they include much more demanding AI software in their operations.

As a result, COMM is perfectly positioned to help the AI industry grow.

And toward the end of October, the price started consolidating near 52-week highs. A break of that resistance level and there’s no telling how high it could run.

7. Apple Inc (NASDAQ: AAPL) — The AI Smartphone Catalyst Mega-Cap Stock

My seventh AI penny stock pick is Apple Inc (NASDAQ: AAPL).

AAPL is a big name, no doubt, and it’s always on our radar.

But let’s focus on how to trade it, rather than get caught up in the ‘big tech’ story.

Why I Like It

AAPL has strong fundamentals, huge cash reserves, and consistent growth.

Plus, the company announced the release of the iPhone 16, just in time for the holidays. The new model comes complete with Apple Intelligence, the company’s AI system.

As you can see, there are a lot of bullish catalysts to push prices higher. But when it comes to trading, the key is to treat it like any other stock. We have to focus on price action rather than falling into the long-term loyalty trap.

Yes, investments are a healthy part of a balanced portfolio, but on this watchlist we’re interested in calculated trades.

AAPL moves more slowly than a penny stock but still has volatility. That means we’re looking to hold positions longer than usual, just make sure to keep your stops tight.

This is another great swing-trade opportunity in the AI industry.

With a giant like AAPL, acting fast and avoiding emotional attachment is key. Don’t fall into the trap of thinking Apple’s always a “safe” stock.

Treat it like any other ticker, trade the spikes, and don’t let the size or story of the company cloud your judgment.

8. Serve Robotics Inc (NASDAQ: SERV) — The NVIDIA Partnership Robotics Penny Stock

My eighth AI penny stock pick is Serve Robotics Inc (NASDAQ: SERV).

I already mentioned this NVDA-investment stock earlier in the watchlist … 

The market learned of NVDA’s position in mid-July. And SERV spiked 810%* over the next few days.

Why I Like It

The price fell after reaching highs on July 30. But the chart continued to show us profitable volatility afterward.

Plus, on October 16, SERV announced a business partnership with NVDA where SERV uses the company’s quantum computing technology in its robots.

The stock spiked during premarket but didn’t continue higher intraday.

That doesn’t matter. Sometimes these spikes get stuffed.

The pre-market volatility shows us that the price can still spike. And as the stock moved into November, the price pushed higher … 

9. NVIDIA Corp (NASDAQ: NVDA) — The Earnings Winner AI Sector Leader That’s Uptrending

My ninth AI penny stock pick is NVIDIA Corp (NASDAQ: NVDA).

NVDA’s been an absolute powerhouse this year. It’s riding high on AI-driven demand and it’s making big waves with chip advancements.

Plus, here’s the kicker — it pushed to new all-time highs in late October!

Why I Like It

This is the kind of setup that we live for as traders: a high-volatility, high-interest stock at record levels that’s primed for swing-trade opportunities.

With the AI IRIS tool in hand, we’ve got a chance to catch smart entry and exit points to make the most of every price spike and pullback!

There’s a lot of momentum here … 

New all-time highs means this volatility is likely to continue, especially with AI and chip demand only increasing.

But keep a clear head — NVDA has huge potential, but it also has huge price swings. And the worst mistake you can make is holding too long on a dip, hoping it’ll bounce back.

Set tight stops, use the AI IRIS tool to stay on top of those key pivot points, and ride NVDA’s volatility without getting too attached to the long-term hype.

Stay focused on the price action and be ready to act quickly.

NVDA’s at all-time highs, this is where smart trading can turn a strong run into big gains for traders who play it correctly.

10. Applovin Corp (NASDAQ: APP) — The IRIS Swing Pick That’s Back at All-Time Highs

My tenth AI penny stock pick is Applovin Corp (NASDAQ: APP).

I started this watchlist with one of IRIS’ favorite swing-trade plays, PLTR … 

It’s only fitting that we end the watchlist with another one of IRIS’ favorite swing-trade setups right now.

Why I Like It

The stock shot to new all-time highs in mid-September. And it didn’t stop there.

It shot higher in October as well. Take a look at the chart below:

What a rocket!

I know the chart might look overextended. That’s a good cautionary thought.

Traders in our community use IRIS to find smart positions on runners that might look overextended.

APP works in the software industry, specifically to connect businesses with customers via mobile applications. And on the company’s homepage, it details the utilization of AI to achieve these business goals:

“AI-powered user targeting delivers the high-quality users you care about and uncovers new, incremental audiences to fuel further growth.”

Keep an eye on this AI runner in November!

*Past performance does not indicate future results

What to Look for in an Artificial Intelligence Penny Stock

Choosing the right AI penny stock involves understanding the following key indicators… Actually, it doesn’t matter if the company behind a penny stock specializes in machine learning or any other hot sector, the advice remains the same! 

1. Focus on stocks that exhibit a tradeable pattern on their stock chart. This shows consistency and predictability, crucial for making informed trading decisions. Stocks with clear patterns often react more reliably to AI market predictions and artificial intelligence analysis. (Steer clear of specific stock market predictions though — any stock market guru that promises high returns for any securities should be avoided!) 
2. A small float is another big item on the checklist. Stocks with a limited number of shares available for trading can be more volatile, which is beneficial for traders looking for high returns. Low-float stocks can move significantly on small volumes, providing opportunities for quick gains.
3. Most importantly, look for unusual trading volumes. Spikes in volume often precede price movements, indicating potential for significant returns. High trading volume can be a signal that something important is happening with the stock, making it a prime candidate for trading.

These are the basic rules I follow to find tradeable setups in AI penny stocks. Let’s go into detail on each step.

Exhibits a Tradeable Pattern on its Stock Chart

A tradeable pattern on a stock chart means that the stock has predictable price movements. This can include consistent upward or downward trends, or even repetitive cycles of highs and lows. These patterns make it easier to anticipate future movements, allowing for strategic trading based on market analysis.

My trading experience has shown that stocks with clear patterns are less risky and more profitable. By focusing on stocks that follow identifiable trends, you can better apply artificial intelligence tools to predict movements. This helps in making informed decisions and achieving better trading outcomes.

Stock advice often emphasizes the importance of patterns. They simplify the trading process and allow you to leverage artificial intelligence and automation for more precise trades. Consistent patterns are a hallmark of stocks with strong potential for high returns.

Is a Low-Float Stock

Low-float stocks are appealing because of their potential for rapid price changes. With fewer shares available, any significant buying or selling can lead to substantial price movements. This volatility is perfect for traders looking to capitalize on quick shifts in stock prices for potentially high returns.

However, low-float stocks come with higher risks. Their price can be easily manipulated, leading to sudden drops. It’s essential to stay informed and use AI applications to track these stocks’ real-time data and make swift trading decisions.

Trading low-float stocks requires a solid understanding of market dynamics. My years of teaching and trading have shown that these stocks can provide excellent opportunities if approached with caution and a well-thought-out strategy. Always be prepared for sudden changes and have a plan in place.

Exhibits an Unusual Trading Volume

Unusual trading volume often signals that a stock is about to make a significant move. This could be due to various factors, including news releases, market speculation, or sudden interest from investors. 

Volume spikes are the biggest indicator of the potential for short-term gains.

Using market data and AI analysis, you can spot these volume changes early. This is good info for your trading plan’s entries and exits! High volume indicates increased interest and liquidity, making it easier to get in and out of positions.

From my experience, stocks with unusual trading volumes offer the best trading opportunities. They can provide the momentum needed for quick profits. Always keep an eye on volume trends and be ready to act when you notice unusual activity.

 

 

Is a Former Runner

A former runner is a stock that has previous spikes in its chart. These stocks have a history of rapid gains, making them attractive for traders looking for quick profits. Past performance does not indicate future results — but it can be an indicator of future potential, especially if the stock has recognizable triggers.

Frequent media attention and market speculation often follow former runners. This can lead to renewed interest and another price surge. Tracking news and market sentiment can help you identify these stocks before they run again.

Former runners can be volatile but profitable. My trading approach is built on creating watchlists like this one around former runners, then entering a trade when a setup I like comes together.

Gets Frequent Media Attention

Media attention can significantly impact a stock’s price. Stocks that frequently appear in news reports or analyst recommendations tend to attract more traders, and artificial intelligence growth has been one of the biggest stories in the market. This increased interest often leads to higher trading volumes and price volatility, creating opportunities for short-term gains.

AI applications can help monitor news and social media for mentions of these stocks, and — more importantly — for the sentiment behind these mentions. This kind of buzz is the second biggest indicator of stock movement.

Trading stocks with regular media attention has been a big part of my trading strategy. Staying updated with the latest news and using AI tools for analysis can give you an edge in the market. Always be ready to act on new information to capitalize on price movements.

Where To Buy AI Penny Stocks

When looking to buy AI penny stocks, consider both major exchanges and over-the-counter (OTC) markets. 

The NYSE and Nasdaq offer more regulated environments, providing a higher degree of security. 

OTC markets are full of moonshot penny stock spikers — but they’re more full of disaster stories. These stocks aren’t bound by the same regulatory requirements, which can lead to the kind of volatility that small-account traders should look for… as long as they know how to protect themselves. 

NYSE/Nasdaq Penny Stocks

Penny stocks listed on the NYSE or Nasdaq are generally considered more reliable. These exchanges have strict listing requirements, ensuring that the companies meet certain standards. Trading on these platforms provides a level of security and compliance not always found in OTC markets.

Stocks on these exchanges often have more reliable AI stock data. This can help you make informed decisions and give you a bit more security.

ETFs that focus on technology and AI sectors can also include penny stocks from these exchanges.

OTC Penny Stocks

OTC penny stocks are riskier but can offer BIG rewards. These low-cost stocks are not subject to the same stringent regulatory requirements as NYSE or Nasdaq stocks. This lack of regulation means higher risk, but also the potential for significant gains.

There are a lot of artificial intelligence opportunities in the market, and some of these can be found in the OTC market. My advice is to be very careful about trading these stocks.

OTC penny stock trading requires a good understanding of stock market potential and artificial intelligence’s speculative nature. Remember that these are not value stocks! But with the right approach and tools, you can find valuable opportunities in this less-regulated space. Always prioritize due diligence and risk management when trading OTC stocks.

AI Stocks Under $5

The allure of hot sector stocks, especially when they’re also penny stocks, is undeniable. These stocks present a unique blend of opportunity and volatility. The AI industry is booming, with advancements and applications spreading across various sectors, from healthcare to finance, making AI stocks a magnet for investors looking for the next big thing. The gains here can be proportionately greater than those from more established stocks, mainly because even minor positive news or advancements can send their prices soaring.

However, it’s crucial to approach these opportunities with a clear strategy and an understanding of the risks involved. The volatility of penny stocks, combined with the speculative nature of AI ventures, means that while the potential for rapid gains is significant, the risk of losses is equally high. Conduct thorough research, looking beyond the hype. And never invest in these stocks — only trade them.

Remember, the key to success in trading AI stocks under $5 is not just about jumping on every opportunity but being selective and strategic. It’s about leveraging the explosive potential of the AI sector while managing risk meticulously. By focusing on companies with the potential to lead in their niche, traders can capitalize on the disproportionate gains that these penny stocks offer, all while keeping their investment strategy tight and cutting losses quickly.

What AI penny stocks do you have on your watchlist? Let me know in the comments!

FAQs

How can AI platforms like ChatGPT contribute to the growth of penny stocks in the AI industry?

AI platforms like ChatGPT and related applications are driving significant innovation in various industries. The growing demand from customers for AI-driven solutions is leading to increased market cap and revenues for companies in the AI space, including those whose shares are classified as penny stocks.

Where can I find the latest news and information about AI penny stocks?

For the latest news and market updates on AI penny stocks, you can explore our markets section. It provides in-depth content, links to reliable sources, and recent results related to AI companies and their stocks.

How can I assess the value of an AI penny stock?

The value of AI penny stocks can be assessed by evaluating several factors. These include demand for AI solutions, people involved in the company, and its market cap. Revenue, earnings, and momentum of the stock in the market are also crucial considerations.

When should I consider selling my AI penny stocks?

Deciding when to sell your AI penny stocks involves evaluating your profit margins and market conditions. It’s generally a good idea to sell if you’ve achieved your desired profit or if there are signs of a downturn in the market. Always consult with a financial advisor to make the most informed decisions.