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 April 2025

My best AI stocks to watch are:

• NASDAQ: MLGO — MicroAlgo Inc. — The 500%* Single Day Runner
• NASDAQ: CSAI — Cloudastructure Inc — The New AI Security Stock That Is Coming in Hot
• NASDAQ: AIFF — Firefly Neuroscience Inc — The NVIDIA Partnership AI Biotech Penny Stock 
• NASDAQ: QUBT — Quantum Computing Inc — The Quantum Computing Penny Stock That Fell on NVIDIA CEO’s Remarks, Again
• NASDAQ: RGTI — Rigetti Computing Inc — The Former Quantum Supernova That Could Go Either Way
• NYSE: BABA — Alibaba Group Holding Ltd — The Chinese Earnings Winner With DeepSeek and Apple News
• NASDAQ: NVDA — NVIDIA Corp — The AI Earnings Winner That Couldn’t Stop the Sell-Off
• NASDAQ: APP — Applovin Corp — The Earnings Winner Falling Off a Cliff
• NASDAQ: PLTR — Palantir Technologies Inc — The Earnings Winner That Might Be Hit By Trump’s Cutbacks
• NASDAQ: AAPL — Apple Inc — The Tech Leader That’s Looking Smart for Not Pegging Its Hopes on AI

AI was one of the hottest sectors in 2024… 

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 April — rated on chart pattern, price action history, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: MLGO	MicroAlgo Inc	+ 459.04%
NASDAQ: CSAI	Cloudastructure Inc	– 68.82%
NASDAQ: AIFF	Firefly Neuroscience Inc	+ 48.11%
NASDAQ: QUBT	Quantum Computing Inc	– 51.56%
NASDAQ: RGTI	Rigetti Computing Inc	-48.44%
NYSE: BABA	Alibaba Group Holding Ltd	+ 56.56%
NASDAQ: NVDA	NVIDIA Corp	– 18.55%
NASDAQ: APP	Applovin Corp	– 15.63%
NYSE: PLTR	Palantir Technologies Inc	+ 12.03%
NASDAQ: AAPL	Apple Inc	– 11.02%

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. MicroAlgo Inc. (NASDAQ: MLGO) — The 500%* Single Day Runner

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.

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.

For example, Regencell Bioscience Holdings Limited (NASDAQ: RGC) squeezed for eight days in a row in March. The run measured 1,500%* in total.

Study the price action from RGC and MLGO, they’re far from the last short squeezes that we’ll see.

2. Cloudastructure Inc (NASDAQ: CSAI) — The New AI Security Stock That Is Coming in Hot

My second AI penny stock pick is Cloudastructure Inc (NASDAQ: CSAI).

On January 30, CSAI began trading on the Nasdaq for the first time.

New stocks can show us a lot of volatility as the market tries to agree on a valuation. And CSAI is no exception … 

Already in 2025, CSAI spiked 870%* between February 7 and February 13.

Why I Like It

In March, the price showed us more bullish momentum.

The AI stock rallied 100%* after the selloff from February’s spike. And considering the price ran 870%* just a month ago, there could be a lot of volatility left.

3. Firefly Neuroscience Inc (NASDAQ: AIFF) — The NVIDIA Partnership AI Biotech Penny Stock 

My third AI penny stock pick is Firefly Neuroscience Inc (NASDAQ: AIFF).

On February 11, we learned that AIFF was selected to join a NVIDIA connect program. After the announcement, the price spiked 450%* in less than three days.

Why I Like It

AIFF is not the first stock to spike with NVIDIA-partnership news. This is a recurring catalyst that can cause 100% multi-day stock spikes.

Look at the examples below:

After the February spike, AIFF saw a 100% selloff  … The price returned all the way to the $3 level from when it first announced the NVDA news.

But in March the price rallied a bit.

The price already spiked 90% from its March lows. And there could be more volatility to come.

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. And it wasn’t the only quantum computing runner, there are more on this watchlist … 

The January selloff on these quantum computing stocks is attributable to Jensen Huang’s comments about the sector on January 8.

The NVIDIA CEO mentioned that the market is still years away from true quantum computers. And the sector took it as a massive gut punch.

Take a look at the chart below:

Why I Like It

On the chart above you can see a bit of a stock rally that’s already in the works.

Unfortunately, Jensen Huang’s comments dampened the momentum again on Thursday, March 20. But QUBT already rallied past the highs from that day.

I’m watching all of the quantum computing stocks that are showing us price rallies. This sector could come roaring back in April.

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).

This is another quantum computing stock that’s rallying in March.

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.

Look at the RGTI chart below:

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. Alibaba Group Holding Ltd (NYSE: BABA) — The Chinese Earnings Winner With DeepSeek and Apple News

My sixth AI penny stock pick is Alibaba Group Holding Ltd (NYSE: BABA).

One of the hottest stocks in February was Alibaba Group Holding Limited (NYSE: BABA).

And the price is still consolidating in March …

Ever since China’s DeepSeek climbed to the top of the Apple app store, China’s major companies (like Alibaba) started to work on their own AI software.

Look at the heading below from January 29:

Why I Like It

On January 29, BABA was trading around $100 per share.

Look what happened next:

Alibaba is also reportedly working with Apple to bring AI features to iPhones in China. There are at least two big catalysts to push BABA higher.

As a result, this is one of the hottest stocks from the Chinese AI sector. We’ve already seen huge trade opportunities from the price action …

For example, did you see the trade that Jack Kellogg made on BABA in February? Jack is a well known trader in our community.

Look at his trade below:

Use our AI swing-trading bot, Iris, to build smart positions on the market’s favorite stocks!

7. NVIDIA Corp (NASDAQ: NVDA) — The AI Earnings Winner That Couldn’t Stop the Sell-Off

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

We’ve already spoken about NVDA in this watchlist as a catalyst. Now let’s talk about it as a trade opportunity.

Why I Like It

On February 26 during after hours, NVDA announced quarterly earnings that beat expectations.

• An earnings per share of $0.89, which beat expectations by $0.04.
• And revenue of $39.33 billion, which beat expectations by $1.17 billion.

The data was extremely bullish.

But we’ve seen NVDA stock reject bullish earnings before, simply because the market’s expectations were far greater than analyst’s.

Even though NVDA’s numbers looked strong, the stock couldn’t escape the gravity of a broader AI sector sell-off. On February 27, NVIDIA shares dropped more than 8%, dragging the entire semiconductor and AI space down with it.

This wasn’t just about NVIDIA. It was about sky-high expectations finally meeting reality — and traders realizing that AI spending might not keep accelerating forever.

We saw the Nasdaq Composite drop nearly 3%, with the semiconductor index itself falling 6%.

Part of this sell-off is tied to growing fears about tighter U.S. restrictions on AI chip exports to China and broader U.S. tariffs. That would directly hit NVIDIA’s revenue.

Also, the entire AI industry is shifting. We’re not just talking about training huge models anymore. The focus is increasingly on inference — the process of actually using those models in real-world applications. And inference demands different kinds of hardware.

NVIDIA saw this coming.

Their new Blackwell platform is designed with inference in mind.

This is a classic NVIDIA move — they saw where the industry was going and adjusted before anyone else. But staying ahead won’t be easy. Startups and big tech companies alike are working on their own custom hardware.

NVIDIA is still the king — but the crown isn’t as secure as it used to be.

For traders, this is a perfect wait-and-see situation. Look for a clear momentum direction during the first few days after NVDA’s earnings announcement. And use IRIS to build smart positions using AI.

There’s a solid breakout level at $150 per share. Keep an eye on that resistance.

8. Applovin Corp (NASDAQ: APP) — The Earnings Winner Falling Off a Cliff

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

APP gapped higher in November after announcing bullish earnings and revenue. 

The stock gapped higher again after the earnings announcement in February.

Since then, the stock lost almost all of its steam, pushing down toward the gap-up level from November.

Take a look at the chart below, every candle represents one trading day:

Why I Like It

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.”

The selloff was drastic, but already we can see that the price rallied from November support.

Keep an eye on this AI runner in April!

9. Palantir Technologies Inc (NASDAQ: PLTR) — The Earnings Winner That Might Be Hit By Trump’s Cutbacks

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

PLTR joined the S&P 500 ETF Trust (NYSE: SPY) on September 23, 2024.

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 March 2025 … this is a sector leader in the software industry that just bounced off of support at $80 per share. And it’s included in one of the market’s most popular indices!

Now … a lot of people get nervous when they see the recent dip on this stock.

We even saw reports from Wall Street that PLTR could drop 40% in 2025 … 

Well, the selloff in February and March reached just about 40%. So I guess Wall Street was right. But where do we go from here?

Why I Like It

On February 3, the Q4 earnings report showed a revenue growth of 36%, year over year.

PLTR shot to new all-time highs after the revenue announcement. So the company has good data to back up a rally.

Also, the company is a key AI provider for systems utilized by the U.S. military, among other major customers.

And it’s one of the few tech stocks that’s still thriving among the current economic constraints.

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 Tech Leader That’s Looking Smart for Not Pegging Its Hopes on AI

My tenth 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, it has a diversified business that doesn’t fully rely on AI prowess. That makes it a smart hedge for anyone who’s worried about U.S. AI supremacy.

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, investment positions 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. 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, act fast and avoid emotional attachment. Don’t fall into the trap of thinking Apple is 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.

Use AI to find smart swing-trade entries!

 

*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.