Top 10 Artificial Intelligence Penny Stocks To Watch in 2025

 

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 July 2025

My best AI stocks to watch are:

• NASDAQ: HOLO — MicroCloud Hologram Inc. — The Crypto-Pivot Meme Play With Massive Upside
• NYSE: BOX — Box Inc. — The Earnings Winner Cloud Computing Stock
• NASDAQ: BNAI — Brand Engagement Network — Pending M&A Volatility Play
• NASDAQ: SYTA — Siyata Mobile Inc. — The AI User Bump Mobile Gaming Stock
• NYSE: OKLO — Oklo Inc. — The Trump Bump Nuclear Sector Leader (With AI Ties)
• NASDAQ: QUBT — Quantum Computing Inc — The Jet Fuel-Powered Runner Reloading With Institutional Fuel
• NASDAQ: RGTI — Rigetti Computing Inc — Is This Quantum Computing Leader Primed for Its Next Run?
• NYSE: QBTS — D-Wave Quantum Inc — Short Squeeze With Institutional Interest
• NYSE: IONQ — IONQ Inc — The Quantum Computing Penny Stock-Plus
• NASDAQ: RR — Richtech Robotics Inc. — Robotics Breakout on Russell 2000 Inclusion

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: HOLO	MicroCloud Hologram Inc
NYSE: BOX	Box Inc
NASDAQ: BNAI	Brand Engagement Network
NASDAQ: SYTA	Siyata Mobile Inc
NYSE: OKLO	Oklo Inc
NASDAQ: QUBT	Quantum Computing Inc
NASDAQ: RGTI	Rigetti Computing Inc
NYSE: QBTS	D-Wave Quantum Inc
NYSE: IONQ	IONQ Inc
NASDAQ: RR	Richtech Robotics Inc

MicroCloud Hologram Inc. (NASDAQ: HOLO) — The Crypto-Pivot Meme Play With Massive Upside

My first AI penny stock pick is MicroCloud Hologram Inc. (NASDAQ: HOLO).

HOLO has been a market wildcard since early 2023 — a true supernova with a history of spiking thousands of percent. After a 6,400%* run in February 2024, it faded hard. But now it’s back in the spotlight with a massive pivot.

The company has committed up to $200 million — two-thirds of its cash reserves — into crypto-related derivatives. They’ve already pulled in $19 million in profits. The rest is earmarked for development in quantum computing, AI, holography, and space-based systems.

And with a float of just 4.8 million shares after a recent reverse split, this stock is primed for violent moves when the volume hits.

Why I like it:

• $200 million crypto allocation + $19M in investment profits
• Float only 4.8M shares after reverse split
• Quantum + AI + crypto = hot trend fuel
• Former 6,000%* runner with history of insane volatility

This is not a buy-and-hold stock. It’s a momentum trade. Watch for volume, breakout levels, and spike potential.

Box Inc. (NYSE: BOX) — The Earnings Winner Cloud Computing Stock

My second AI penny stock pick is Box Inc. (NYSE: BOX).

You might think a stock like Box — trading well above traditional penny levels — doesn’t belong on a watchlist like this. But here’s the truth: price doesn’t matter — pattern and catalyst do.

Box crushed its latest earnings report. Revenue was up 4% year-over-year, hitting $276 million, and they raised guidance for the rest of fiscal 2025. More important for us traders? They’re leaning into AI harder than ever, launching AI Agent tools for enterprise-level deep research and enhanced data processing. They already serve 68% of the Fortune 500, so layering AI into that customer base is a narrative Wall Street can’t ignore.

Technically, the stock broke out to all-time highs post-earnings — no overhead resistance in sight. When a stock enters blue-sky breakout mode, the potential for trend continuation is much higher, especially with the AI tailwind behind it. The current setup looks like a high tight flag — a powerful consolidation pattern that often precedes another breakout leg.

Why I’m Watching

• Fresh post-earnings breakout.
• AI expansion narrative gaining traction.
• High tight flag pattern — classic continuation setup.

This isn’t the cheapest stock on the list, but again, it’s not about price — it’s about risk/reward setups. If BOX consolidates properly and breaks higher, it’s a pattern that historically leads to fast, sustained moves.

Brand Engagement Network (NASDAQ: BNAI) — Pending M&A Volatility Play

My third AI penny stock pick is Brand Engagement Network (NASDAQ: BNAI).

BNAI flies under most radars — and that’s exactly why I like watching these setups. In October 2024, the company announced it was acquiring Cataneo GmbH for $19.5 million in cash and stock (as of this writing the deal hasn’t been consummated).

Here’s why this matters: microcap M&A deals often don’t get much attention until the deal is either finalized or a new piece of news breaks. And when they do, low liquidity can translate into big price swings. BNAI has a tiny market cap of around $10 million — that means even modest buying interest could create major percentage moves.

The chart shows the typical illiquid, choppy trading of a low-float microcap — but catalysts like this can change everything. With the deadline approaching, I’m watching closely for either deal confirmation or other news that could spark a revaluation.

Why I’m Watching

• M&A headline catalyst in play.
• Low market cap = exaggerated moves on news.
• Analyst price target of $6 offers speculative upside from current levels.

It’s important to be nimble with stocks like BNAI. If it confirms the acquisition or hits the tape with an unexpected headline, it could spike hard — but liquidity dries up just as fast when the news fades. Know what you’re trading.

Siyata Mobile Inc. (NASDAQ: SYTA) — The AI User Bump Mobile Gaming Stock

My fourth AI penny stock pick is Siyata Mobile Inc. (NASDAQ: SYTA).

This is one of the most fascinating penny stock stories of the past few months. SYTA caught fire after Core Gaming — the company it’s merging with — announced on May 9 that its AI-powered Comic App had attracted 300,000 users just 24 hours after launch.

For penny stock traders, that’s a dream catalyst: viral growth + AI narrative + low float = explosive potential. And that’s exactly what happened. SYTA surged an incredible 810%* over a multi-day supernova run in May — one of the cleanest and most aggressive moves we’ve seen in months.

Is Siyata Mobile Stock A Buy Right Now?

What I love about this setup isn’t just the first move. It’s that Core Gaming and SYTA are doubling down. Core Gaming is presenting at the Maxim Group’s 2025 Virtual Tech Conference, focused on AI innovations. More news about their AI initiatives could easily re-ignite interest — especially with traders already familiar with the ticker from the prior run.

Why I’m Watching

• Viral user growth gives credibility to the AI narrative.
• Merging with Core Gaming — access to a hot new AI-driven business.
• Textbook supernova chart — and second waves can be just as powerful as first.

Supernovas often follow a pattern: first explosive run, pullback and base, second run if new catalysts hit. If we see another catalyst drop, SYTA could be a prime setup for another leg higher. But it’s critical to be patient — wait for confirmation before jumping in.

Oklo Inc. (NYSE: OKLO) — The Trump Bump Nuclear Sector Leader (With AI Ties)

My fifth AI penny stock pick is Oklo Inc. (NYSE: OKLO).

Oklo sits at the intersection of two of the biggest macro trends of the decade: the resurgence of nuclear energy and the energy demands of AI infrastructure.

On May 23, Trump’s executive orders to support nuclear energy sent the entire sector surging — and OKLO was one of the prime beneficiaries. 

Here’s the headline: 

Oklo Shares Surge on Tailwinds from US Nuclear Support

We saw multiple nuclear stocks spike as a result.

Here are some other examples of nuclear runners:

• NuScale Power Corporation (NYSE: SMR) spiked 45%.
• Cameco Corporation (NYSE: CCJ) spiked 17%.

OKLO is trading near all time highs right now.

Small modular reactors (SMRs) like Oklo’s are considered the future of clean, reliable power generation — and they’re moving closer to commercial reality. OKLO is targeting its first commercial reactor deployment by 2027.

But here’s where it gets even more interesting. In April, Sam Altman, CEO of OpenAI, stepped down from his role as Oklo’s chairman. That cleared the way for potential partnerships between Oklo and OpenAI or other data-centric companies looking for clean, scalable energy to power massive AI data centers.

AI data centers require enormous energy resources — and traditional grids are already stretched thin. Nuclear power, particularly modular nuclear power, offers a compelling solution. Oklo is positioning itself right in that sweet spot.

Why I’m Watching

• Nuclear power is getting political tailwinds.
• SMRs are seen as a key future tech for energy generation.
• Potential OpenAI partnership could act as a massive catalyst.

OKLO is trading near all-time highs — and when a stock approaches new highs, there’s little overhead resistance. If it breaks out cleanly with volume, it could trigger a strong momentum run. Watch for high-volume moves through resistance.

Quantum Computing Inc. (NASDAQ: QUBT) — The Jet Fuel-Powered Runner Reloading With Institutional Fuel

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

QUBT exploded 1,800%* into the end of 2024. Since then, it’s cooled off — but it’s not dead. These former runners don’t just disappear, especially when the company keeps stacking headlines.

In June, QUBT closed a $200 million private placement with major institutions, pushing its cash position over $350 million — with zero debt. That gives them ammo to chase commercial expansion and scale their photonic and quantum platforms. Plus, they’re still riding the momentum of a NASA contract and Russell 3000 index inclusion.

Why I like it:

• Over $350 million in cash and no debt
• Recent $200 million institutional raise
• Russell 3000 inclusion could drive fund buying
• Former 1,800%* runner with strong pattern history

Let it consolidate. Watch for volume surges and key breakout levels to come back into play. Former runners often give second or third chances when the catalysts keep coming.

Rigetti Computing Inc. (NASDAQ: RGTI) — The Deep-Tech Quantum Laggard With Long-Term Upside

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

RGTI had a massive run in 2024 — over 1,100%* at one point — but has since faded hard. The pullback hit 48% off the highs as investors priced in a weaker quarter and dilution from a $350 million open market sales agreement.

But this isn’t a junk play. Rigetti is building gate-based superconducting quantum systems and is targeting a 108-qubit chip by the end of the year. The business model is long-term and R&D intensive — not flashy, but meaningful. If the sector heats up again, these names can snap back fast.

Why I like it:

• Developing universal gate-model quantum systems
• Modular design with AI-assisted calibration
• Still trades with solid liquidity and volatility
• Former parabolic name with bottoming potential

No need to chase. If quantum headlines spike again, this can be a sympathy mover. Wait for confirmation and trade the range.

D-Wave Quantum Inc. (NYSE: QBTS) — Short Squeeze with Institutional Interest

My eighth AI penny stock pick is D-Wave Quantum Inc. (NYSE: QBTS).

If you’re looking for volatility, QBTS has it in spades. This stock has been one of the most controversial names in the quantum sector. On the one hand, they posted an impressive 500% year-over-year revenue gain in Q1 — a rare feat for a company in this niche. On the other hand, there’s an ongoing investigation into the company for possible fraudulent activity.

Normally, that kind of risk might scare traders away. But in the world of short-term trading, controversy often equals opportunity — especially when combined with high short interest.

D-Wave Quantum: Navigating Recent Gains

Even more interesting is the institutional activity. CalSTRS, the second-largest public pension fund in the U.S., materially increased their position in D-Wave earlier this year. That kind of move lends some legitimacy to a company that many retail traders might otherwise overlook.

Why I’m Watching

• Massive revenue growth = legitimate business traction.
• Ongoing investigation + high short interest = squeeze setup potential.
• Institutional interest from CalSTRS shows that not all the smart money is scared off.

QBTS is a high-risk, high-reward play — no question about it. But those are exactly the types of setups that can deliver the biggest moves if a squeeze triggers. I’ll be watching for any news catalyst or shift in sentiment that could light the fuse.

IONQ Inc. (NYSE: IONQ) — The Quantum Computing Penny Stock-Plus

My ninth AI penny stock pick is IONQ Inc. (NYSE: IONQ).

IONQ is a clear leader in the quantum computing space right now — and the stock’s performance reflects it. Over the last year, IONQ has climbed more than 418%* — an incredible move for a company in such a cutting-edge sector.

Their secret sauce? Trapped-ion quantum computing — a technology that’s proven to be more stable and scalable than many other approaches. While most early-stage quantum tech companies are still pre-revenue or struggling to demonstrate real-world applications, IONQ is forging ahead with partnerships and active deployments.

From a trading perspective, the technicals couldn’t look much better. IONQ continues to ride above key moving averages, including the 50-day EMA, a strong sign that momentum remains intact.

Why I’m Watching

• Sector leader — the company other quantum firms are trying to catch.
• Strong technical uptrend — riding key support levels.
• Increasing institutional interest and bullish Wall Street sentiment.

While IONQ isn’t a cheap penny play anymore, it’s still a trader’s stock — liquid, volatile, and sector-leading. I’m watching for trend continuation setups on pullbacks to moving averages or breakouts above recent highs.

Richtech Robotics Inc. (NASDAQ: RR) — Robotics Breakout on Russell 2000 Inclusion

My tenth AI penny stock pick is Richtech Robotics Inc. (NASDAQ: RR).

Richtech Robotics might not be a pure-play AI or quantum company, but don’t sleep on the robotics angle. Robotics is becoming increasingly tied into the AI story, with machine learning and autonomous technology driving innovation.

RR made a major move earlier this year, rallying 760%* between December 2024 and January 2025. That’s the kind of explosive move that traders remember — and more importantly, it shows the stock can run when conditions are right.

More recently, RR was added to the Russell 2000 Index — a key milestone that brings more institutional eyes to the table. Despite that, the stock is still trading well below its prior highs, consolidating at lower levels. That’s the kind of basing action that can precede another breakout, especially if the broader tech sector stays strong into the summer.

Why I’m Watching

• Former supernova — it can spike in the right conditions.
• Russell 2000 inclusion brings increased institutional exposure.
• Robotics sector ties into the AI growth story.

I’m setting alerts at key psychological levels — $2, $3, and $5. If RR starts to break out of this base with volume, it could easily reclaim some of its former glory. And in this market, you have to respect any former runner that’s basing quietly — it’s often the calm before the next storm.

*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.