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 May 2025

My best AI stocks to watch are:

• NASDAQ: MLGO — MicroAlgo Inc — The 500%* Single Day Runner That’s Back on Watch
• NASDAQ: JNVR — Janover Inc — The Supernova DeFi Play
• NASDAQ: HTZ — Hertz Global — The Car Rental Stock Doing AI Inspections
• NASDAQ: QUBT — Quantum Computing Inc — The NASA Contract Quantum Computing Stock
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing Sector Leader I’m Watching for the Next Run
• NYSE: NMAX — Newsmax Inc — The AI News Meme Stock That’s Building Its Chart
• NASDAQ: TSLA — Tesla Inc — The Mega-Cap Breakout Stock
• NASDAQ: NVDA — NVIDIA Corp — The AI Leader That’s Holding $100 Like a Launchpad
• NASDAQ: PLTR — Palantir Technologies Inc — The Sector Leader That’s $6 From a Fresh Breakout
• NASDAQ: AAPL — Apple Inc — The Tariff-Proof Tech Giant That’s Built to Adapt

AI was one of the most explosive sectors in 2024 — and it’s still one of the most closely watched in 2025. Despite early-year volatility and a round of selling tied to trade war headlines, the broader market has shown surprising strength. Big Tech names are leading again, and AI-related companies remain at the center of the action.

The key difference now? We’re seeing a more selective market. Traders are focusing on companies with real traction — whether it’s enterprise adoption, cloud infrastructure, or government contracts. Momentum is still here, but the setups are tighter. That’s why it’s more important than ever to approach this sector with discipline and a defined plan.

AI penny stocks can offer massive potential in the right conditions, especially when paired with the right chart. But not every AI play is a winner. Volatility is part of the game — and for traders, that’s a good thing. Just make sure you’re trading based on patterns, not promises.

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 Tesla Inc (NASDAQ: TSLA).
  
  
• 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, Alphabet (Google), and Meta (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, Alphabet (Google), and Meta (Facebook). Many 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!

Stock Ticker	Company	Performance (YTD)
NASDAQ: MLGO	MicroAlgo Inc	+ 36.80%
NASDAQ: JNVR	Janover Inc	+ 1,304.10%
NASDAQ: HTZ	Hertz Global	+ 83.65%
NASDAQ: QUBT	Quantum Computing Inc	– 62.58%
NASDAQ: RGTI	Rigetti Computing Inc	– 54.30%
NYSE: NMAX	Newsmax Inc	– 72.03%
NASDAQ: TSLA	Tesla Inc	– 26.04%
NASDAQ: NVDA	NVIDIA Corp	– 19.30%
NYSE: PLTR	Palantir Technologies Inc	+ 54.54%
NASDAQ: AAPL	Apple Inc	– 12.52%

1. MicroAlgo Inc. (NASDAQ: MLGO) — The 500%* Single Day Runner That’s Back on Watch

My first AI penny stock pick is MicroAlgo Inc. (NASDAQ: MLGO).

On Friday, February 21, we watched MicroAlgo Inc. (NASDAQ: MLGO) spike 910%*!

From less than $2 per share to over $11 per share … 

It quickly fell back into the $2 range. That’s what penny stocks do.

Then — it happened again!

The price spiked 500%* on March 24 after the company announced a plan to issue new shares the day before. The stock finished out March on a 1,100%* tear!

It was initially a bearish catalyst that caused share prices to drop … 

But the bearish momentum quickly lured in short sellers and turned the move into a huge short squeeze.

I wasn’t surprised. We see a massive short squeeze like this every month, among smaller squeezes from week to week.

There are too many short sellers in the market right now. When they all focus on one crappy stock, it can push the price even higher as they’re squeezed out.

Why I Like It

We’ve seen a lot of short squeezes lately.

The short-selling strategy is still incredibly oversaturated. And sometimes these short squeezes turn into multi-day runners.

StocksToTrade shows that the float is only 797k shares. That’s well below our goal of 10 million shares or fewer. The low supply helps prices spike higher when demand for the stock increases. The low supply also helps to squeeze short sellers.

Look for MLGO to show VWAP holds, failed fades, or midday breakouts. This ticker’s personality is extreme — use tight risk controls, but don’t ignore the upside..

Set alerts in StocksToTrade to make sure you’re in time for the next price surge.

Janover Inc (NASDAQ: JNVR) — The Supernova DeFi Play 

My second AI penny stock pick is Janover Inc (NASDAQ: JNVR).

JNVR soared 1,800%* in April. It’s a meme play — of course there is an AI angle.

There are huge stock spikes all over the place in our niche.

Why I Like It

On April 7, JNVR’s management team raised $42 million to enhance its digital asset treasury strategy.

Read more about this trendsetting catalyst here!

JNVR started the Solana adoption trend…

Which Classover Holdings Inc. [NASDAQ: KIDZ] just rode to a 600%* one-day gain on May 1!

JNVR is still spiking. On May 1, this heavyweight stock managed to spike 10%.

It’s now past the breakout level of $80 per share, after trading around $5 per share at the beginning of April. Keep it on close watch.

3. Hertz Global (NASDAQ: HTZ) — The Car Rental Stock Doing AI Inspections

My third AI penny stock pick is Hertz Global (NASDAQ: HTZ).

On April 16 during premarket hours, the market learned that Bill Ackman’s company, Pershing Square, is holding 12.7 million shares of HTZ.

We also learned that the company is partnering with UVeye to incorporate AI inspections in its car rental business.

The price spiked 150%* within the next four trading days.

Why I Like It

Since the spike, the price dipped a bit. But it hasn’t given back all of its gains. That’s a sign the stock could rally and push even further.

Keep an eye on the breakout level around $9.

4. Quantum Computing Inc (NASDAQ: QUBT) — The Quantum Computing Penny Stock That Fell on NVIDIA CEO’s Remarks, Again

My fourth AI penny stock pick is Quantum Computing Inc (NASDAQ: QUBT).

The quantum computing sector was on fire toward the end of 2024.

QUBT spiked 1,800%* during those months.

Then came the selloff — partly due to NVIDIA CEO Jensen Huang’s comments in January, where he said we’re still years away from true quantum computing.

Here’s what happened next:

Why I Like It

On April 30, QUBT announced a contract with NASA worth up to $406,000. The goal? Support NASA’s LIDAR data analysis — a perfect fit for QUBT’s quantum-AI hybrid systems.

This is fresh news, and it’s just starting to make waves.

These types of government contracts can trigger big moves — especially when you’ve got a chart with proven volatility.

Watch for bullish follow-through in early May.

5. Rigetti Computing Inc (NASDAQ: RGTI) — The Former Quantum Supernova That Could Go Either Way

My fifth AI penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

It’s similar to QUBT …

• A late 2024 surge.
• A January selloff thanks to Huang.
• And a recent rally.

The chart looks a little different, but no two stocks are ever the same.

Why I Like It

A lot of these quantum stocks are merely sector momentum plays.

Meaning, it doesn’t really matter what the company does. Just that it’s in the quantum sector. 

We’re waiting for the chart to show us profitable price action that matches our trade patterns.

6. Newsmax Inc (NYSE: NMAX) — The AI News Meme Stock That’s Building Its Chart

My sixth AI penny stock pick is Newsmax Inc (NYSE: NMAX).

This is a media meme stock that exploded 1,700%* between March 31 and April 1. It’s got some strong Trump sympathy momentum.

It was wildly overvalued on its run, but it’s got some new-school media tricks up its sleeve. Since January of 2024, it’s been providing AI-powered translation services for global media outlets.

Why I Like It

Past spikers can spike again. The parabolic run between March and April was really impressive.

But this isn’t just about chasing that move. Now that the hype has cooled, NMAX is starting to build a chart. That’s the kind of action I look for — real levels of support, a tradeable pattern, and a chance to plan smart entries.

It’s still a meme stock. Still a media stock. Still tied to AI. And still worth watching.

7. Tesla Inc (NASDAQ: TSLA) — The Mega-Cap Breakout Stock 

My seventh AI stock pick is Tesla Inc (NASDAQ: TSLA).

It’s no secret … Elon Musk’s relationship with the Trump administration had a negative effect on TSLA’s stock price.

But TSLA was facing headwinds before Musk’s infamous Department Of Government Efficiency (DOGE).

There’s EV competition from overseas. Musk’s already-full schedule and multiple companies cast doubt for many investors that he was optimizing the company’s value and efficiency.

The political protests over the last exacerbated these issues.

As a result, at its worst on April 7, TSLA was down 56% from its all-time highs on December 18, 2024.

Why I Like It

Currently, the chart is in an interesting position.

There’s solid resistance just below $300 per share … That acts as a breakout level for a potential rally. Look at the TSLA chart below:

This breakout level helps us plan a swing trade for the stock.

And now that Elon officially left DOGE, it’s possible that TSLA’s stock creeps back up as he resumes his role as CEO without the burden of White House work.

Use my AI-trading bot to build smart swing-trading positions on TSLA!

8. NVIDIA Corp (NASDAQ: NVDA) — The AI Leader That’s Holding $100 Like a Launchpad

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

I’ve said it before — NVIDIA is the most advanced company in AI, and they’re already adapting to tariff risks.

They’ve started relocating manufacturing. And they’re still ahead of the curve.

Why I Like It

The chart is super clean.

Ran to $100. Pulled back. Held. Repeated.

That $100 level is acting like a launchpad. And I think we’re getting ready to run again.

They’ve got the tech, the management, and the momentum.

9. Palantir Technologies Inc (NASDAQ: PLTR) — The Sector Leader That’s $6 From a Fresh Breakout

My ninth AI stock pick is Palantir Technologies Inc (NASDAQ: PLTR).

I’ve been on this one since it broke out in the $26–27 range last fall. We called it in the swing trade alerts right at that breakout. It ran to $125 and people started asking if they should sell.

I said, why would you sell here? You bought the breakout — let it run.

Why I Like It

Now we’re about $6 off a fresh breakout level again, with nonstop news flow.

I still love it.

Get it before the breakout.

Small-account traders can trade higher-priced stocks with options—click here to learn how from Jeff Zananiri, one of the best in the business!

10. Apple Inc (NASDAQ: AAPL) — The Tariff-Proof Tech Giant That’s Built to Adapt

My tenth AI 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

I look at the recent dip as a gift.

People worry about tariffs, but Apple can easily adapt. They’ve already tested domestic manufacturing in Texas, and they have the scale and capital to pivot if they need to.

It’ll take time and money, but they’ve done it before. Whether tariffs stick or not, Apple will find a way — and long-term, they’re going to win.

Read more about tariff-proof stocks here!

*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.