Artificial Intelligence Penny Stocks

Welcome to the dynamic world of Artificial Intelligence (AI) penny stocks. As traders, we’re always on the lookout for opportunities to make money, and AI penny stocks offer a unique blend of technology and financial growth potential. These stocks represent shares in companies that are harnessing the power of AI to develop innovative products and services, transforming industries from software development to securities trading.

AI is not just about robots or self-driving cars; it’s about machine learning, data analytics, and creating intelligent software that can learn and adapt. It’s about harnessing the power of AI to analyze market trends, predict future price movements, and make informed trading decisions. It’s about using AI tools to analyze stock charts, identify tradeable patterns, and manage portfolio risk.

But remember, trading AI penny stocks is not without its challenges. These stocks can be volatile, and there’s always the risk of losses. But as traders, we don’t fear risk; we manage it. We use strategies to limit our losses and maximize our gains. We don’t just blindly invest in AI stocks; we trade them based on patterns, data, and market insights.

In this article, we’ll explore the world of AI penny stocks, from understanding what they are to identifying potential investment opportunities. We’ll delve into the advantages of trading AI stocks, what to look for in an AI penny stock, where to buy these stocks, and some of the top AI penny stocks to watch. 

So let’s dive in and explore the exciting world of AI penny stocks!

What Is Artificial Intelligence?

Artificial Intelligence (AI) is a game-changer in today’s world. It’s a technology that enables machines to mimic human intelligence. AI is not just about robots; it’s about software, algorithms, and machine learning. It’s about creating systems that can learn, adapt, and potentially act autonomously. AI is used in a wide range of sectors, from self-driving cars to advertising, and it’s transforming the way businesses operate.

AI is also making waves in the stock market. It’s being used to analyze vast amounts of data, predict market trends, and make trading decisions. AI is not just for big tech companies like Microsoft; it’s also being used by penny stock companies to drive growth and innovation. But remember, while AI has the potential to revolutionize industries, it also comes with risks. As traders, we need to understand these risks and make informed decisions.

Advantages of Trading AI Stocks

Trading AI stocks can offer several advantages. One of the key benefits is the potential for high growth. AI is a rapidly expanding sector, and companies that are developing innovative AI solutions can see significant growth. This growth can translate into an increase in share price, providing opportunities for traders to make gains.

However, trading AI stocks is not without risk. These stocks can be volatile, and there’s always the risk of losses. But remember, as traders, we don’t fear risk; we manage it. We use tools and strategies to limit our losses and maximize our gains. We don’t just blindly invest in AI stocks; we trade them based on patterns, data, and market insights.

What to Look for in an Artificial Intelligence Penny Stock

When it comes to trading AI penny stocks, there are several things you should look for.

Exhibits a Tradeable Pattern on its Stock Chart

First, look for a tradeable pattern on the stock chart. Patterns can give us insights into potential price movements. For example, a breakout pattern could indicate that the stock price is about to rise. But remember, patterns are not guarantees; they are just one tool we use to make trading decisions.

Is a Low-Float Stock

Second, consider whether the stock is a low-float stock. Low-float stocks have fewer shares available for trading, which can lead to higher volatility and potentially higher gains. But be careful, high volatility also means higher risk.

Exhibits an Unusual Trading Volume

Third, look for unusual trading volume. A sudden increase in trading volume could indicate that something significant is happening with the company, such as a new product launch or a major contract win.

Is a Former Runner

Fourth, check if the stock is a former runner. Former runners are stocks that have had significant price increases in the past. These stocks can potentially run again, providing opportunities for gains.

Gets Frequent Media Attention

Finally, pay attention to media coverage. Stocks that get frequent media attention can see increased investor interest, which can drive up the share price.

Where to Buy AI Penny Stocks

There are several places where you can buy AI penny stocks.

NYSE/Nasdaq Penny Stocks

You can find AI penny stocks on major exchanges like the NYSE and Nasdaq. These stocks are subject to strict listing requirements, which can provide a certain level of security for investors.

OTC Penny Stocks

You can also find AI penny stocks on the Over-the-Counter (OTC) market. OTC stocks are not subject to the same listing requirements as NYSE/Nasdaq stocks, which can make them riskier. But remember, with higher risk comes the potential for higher returns.

The Best Place to Buy Tech Penny Stocks

The best place to buy tech penny stocks depends on your trading strategy and risk tolerance. Some traders prefer the security of NYSE/Nasdaq stocks, while others are willing to take on the risk of OTC stocks for the potential of higher returns.

Top AI Penny Stocks

My top AI penny stock picks are:

• NYSE: FSLY — Fastly, Inc. — The Edge Computing AI Sympathy Play
• NYSE: CCJ — Cameco Corporation — The 52-Week-High AI Swing Play
• NASDAQ: APP — AppLovin Corporation — The Large-Cap AI Stock
• NASDAQ: NVDA — NVIDIA Corp — The AI Mega-Cap Stock Earnings Winner
• NYSE: IONQ — IonQ, Inc. — The Quantum Computing Trade Idea from our AI System IRIS
• NYSE: AI — C3.ai Inc. — The AI Mid-Cap Stock Sector Leader
• NASDAQ: INOD — Innodata Inc. — The AI Penny Stock Grinder
• NASDAQ: RENB — Renovaro Biosciences Inc — The AI Merger Biotech Penny Stock
• NASDAQ: VCIG — VCI Global — The New Microsoft Partnership Penny Stock
• NASDAQ: AAOI — Applied Optoelectronics Inc. — The Other Microsoft Partnership Penny Stock

AI has been 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 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.

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 here. 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!

1. Fastly, Inc. (NYSE: FSLY) — The Edge Computing AI Sympathy Play

My first AI stock pick is Fastly, Inc. (NYSE: FSLY).

We’re starting with a stock that’s AI-adjacent.

The great thing about sector momentum is its ability to affect multiple stocks and related sectors.

As they say, a rising tide lifts all boats.

Why I Like It

The company provides a content delivery network (CDN).

CDNs are necessary for firms that wish to provide quick and reliable internet content.

This is all very intellectual stuff. But you don’t need to be a genius to understand that AI relies on quick and reliable internet. Especially when it comes to user access for the masses.

All we have to do is identify the trend. And already nine months into the year, FSLY is on a space-bound trajectory.

The stock just broke through 2023 highs and extended its run to 200%.

In mid-August, it announced an expanded business operation after its acquisition of Domainr, a domain name search company. That feels like a desperate press release. And any stock that wants to play the “look at me” game is one to keep an eye on.

Some of the biggest spikes come from speculation and hype. The more press releases the better.

2. Cameco Corporation (NYSE: CCJ) — The 52-Week-High AI Swing Play

My second AI stock pick is Cameco Corporation (NYSE: CCJ).

As you’ll probably notice, a lot of the stocks on this watchlist aren’t penny stocks.

Meaning, they trade above $5 per share.

That makes them decent swing-trade opportunities because the intraday moves are muted due to the higher share price.

Usually, we hone in on penny stocks because the potential return is greater.

But in the case of AI, a lot of the would-be penny stocks are on multi-month rips.

The sector is so strong and so new that even financially unsound companies are at all-time highs.

In the case of CCJ … 

Why I Like It

Cameco is running on AI momentum, but the company seems relatively stable.

The StocksToTrade platform shows it operates in the uranium-energy industry and has more than 2,000 employees.

*Stop with the Yahoo Finance tabs. Try a 14-day trial of StocksToTrade for $7*

That energy is highly coveted by growing computation businesses that house AI-capable hardware. Remember how much energy crypto uses… the level of computer power necessary for AI capabilities is comparable.

And on August 3 the company announced Q2 earnings that included revenue growth for the future. The earnings were a little stagnant but other financial players are still bullish on CCJ in the long term.

I’m not trying to invest based on their interest, I’m just gauging the market sentiment.

In 2023 the price already spiked 60%. Not bad for a higher-priced stock.

This sector isn’t finished growing. There’s a chance CCJ pushes even higher.

3. AppLovin Corporation (NASDAQ: APP) — The Large-Cap AI Stock

My third AI stock pick is AppLovin Corporation (NASDAQ: APP).

Large-cap stocks aren’t usually our specialty. But as I alluded, we’re in uncharted waters … 

It’s a lot like the dot com boom in the early 2000s. 

The internet was new and everyone could feel its permanence. But we didn’t know which companies were going to make it.

That’s where the AI sector exists right now.

And APP is crushing it out of the gate.

Why I Like It

It’s got a history of strong earnings reports. And on August 9 the company’s Q2 report didn’t fail to impress.

Quarterly revenue pushed to $750 million and exceeded expectations by $25 million. And the company boasted about its AI implementation in the report.

That’s a huge catalyst for the stock. It’s the reason prices gapped up that morning and continued to spike even higher.

We rarely see higher-priced stocks behave like this.

The AI sector is special. The sooner you realize that the better. There are opportunities at your fingertips.

4. NVIDIA Corp (NASDAQ: NVDA) — The AI Mega-Cap Stock Earnings Winner

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

With every hot sector, there’s a sector leader.

Sometimes that means a big penny stock spiker that rattles a bunch of other low-float stocks in the sector. 

AI is a market-wide revolution. It’s similar to the EV boom in 2020 and 2021.

Its momentum has been great for all stocks, not just stocks in its sector.

The EV sector leader is Tesla Inc. (NASDAQ: TSLA).

And when it comes to AI, the market-wide sector leader is NVDA.

Why I Like It

This isn’t something I would consider an intra-day trade.

But I do think there could be some great swing trade opportunities if you’re able to find a solid entry on some support.

The AI sector continues to grow. NVDA’s products are used in high-functioning computers around the world. It’s quite literally at the heart of the tech sector.

And it’s a huge company. The market cap is over $1 trillion and there are over 26,000 employees.

That raises a bit of an issue for a lot of traders in our niche … the share price is almost $500.

For small-account traders, it’s not a very feasible setup.

If you’re able to buy shares, great. If not … keep an eye on NVDA to help gauge the sentiment of the overall sector.

5. IonQ, Inc. (NYSE: IONQ) — The Quantum Computing Trade Idea from our AI System IRIS

My fifth AI penny stock pick is IonQ, Inc. (NYSE: IONQ).

This isn’t technically an AI stock. Quantum computing is a little different … but our AI system IRIS loves it.

IRIS is our specially trained AI trading service …

It just debuted, and it’s already racked up the following gains:

• 80.53% on CDLX
• ​119.33% on MRO
• ​447.60% on CYTK
• ​581.53% on AMD
• 3,229.29% on ENPH 

And it’s got its sights set on IONQ.

That’s a good enough reason for me to watch it.

Get in early on the IRIS revolution — check out the webinar here!

Why I Like It

A hot sector can also move the stocks around it.

Just look at the booming tech sector in 2023. It’s a night-and-day comparison to 2022.

Sympathy plays get even more interesting when we’re looking at complementary sectors like quantum computing.

Quantum computing could help supply the power for strong AI in the future. That’s what I mean when I say the sectors complement each other. This watchlist is full of complementary stocks.

IONQ recently topped out at $20 in early August. That’s a good thing because now we’ve got a solid breakout level to work with. The price is consolidating at the moment.

I’m waiting to see if it can bounce and retest those highs.

Something to keep an eye on: there are A LOT of watchlists carrying this pick.

A lot of people seem to like IONQ’s long-term potential despite the lingering risks. Or at least, that’s how they’re peddling the stock.

I’m not here to speculate about the future.

But if other people want to get worked up about it … that can only work to our gain.

6. C3.ai Inc. (NYSE: AI) — The AI Stock Sector Leader

My sixth AI stock pick is C3.ai Inc. (NYSE: AI).

The company’s AI-enabled SaaS products include users like Koch Industries, Bank of America, and the US Air Force. This is a real-deal company that’s still got room to run.

Why I Like It

The stock has a decently low float at 86 million shares. And we’ve already seen it make big moves this year.

Nothing has been happening lately news-wise. The price dipped a bit after NVIDIA Corporation (NASDAQ: NVDA) released earnings … 

The whole industry took a bit of a hit because the impressive earnings were already priced in. 

This was a ‘buy the rumor, sell the news’ type move.

But don’t worry, the sector is still roaring.

C3.ai already earned its place as one of AI’s most exciting new stars.

Wait for the price to work its way up, then we can start to plan a trade.

7. Innodata Inc. (NASDAQ: INOD) — The AI Penny Stock Grinder

My seventh AI penny stock pick is Innodata Inc. (NASDAQ: INOD).

It’s been running since early January.

That’s when the AI momentum started.

But more recently, on July 18, prices gapped up toward the highs after announcing news that it started training a big tech company’s large language model (LLM).

LLMs are AI algorithms that use deep learning of large data sets to understand, summarize, generate, and predict new content.

Why I Like It

This stock already climbed 410% since the start of 2023. It’s not exactly making a profit, but it seems closer than a lot of the other stocks in this sector. 

But remember, the company profits aren’t at the front of my mind. We want to trade the volatility that comes from hype.

The company hasn’t released the name of their client — “one of the five largest technology companies” is all they’ve said in press releases.

But they have released a lot of press releases. That tells me they know how to play the game. The more announcements, the better chance something will spark.

If they can namedrop a bit more in the future, we might see some real fireworks.

Prices are still trading near the highs as I type this.

8. Renovaro Biosciences Inc (NASDAQ: RENB) — The AI Merger Biotech Penny Stock

My eighth AI stock pick is Renovaro Biosciences Inc (NASDAQ: RENB).

In case you were wondering, the AI sector isn’t the only hot pool of stocks right now.

For a few months, we’ve watched biotech stocks rip higher as well.

RENB is a biotech stock. But there’s a good reason it’s on the AI watchlist … 

Why I Like It

It spiked more than 170% on August 9 after announcing a merger with an AI company.

And it didn’t stop there. All told, it’s managed to launch more than 250%.

That’s why I keep stocks like this on my watchlist.

On Day 1 it closed in the red. An undisciplined trader would have forgotten about it. Not me.

I watched as it consolidated for a few days and then started to creep up toward the breakout level.

And it wouldn’t surprise me to see RENB push even higher … 

• The biotech sector is hot
• The AI sector is hot

That’s a lot of momentum behind one stock.

But make sure to find solid support before planning a trade.

Remember that these low-priced plays are volatile. You don’t want to get stuck on the wrong side.

Even if it’s just for a few hours. That kind of stress will make you lose your hair.

Here’s how you protect yourself:

• Wait for the perfect entry
• Plan a potential profit
• Plan a potential loss

Every trader loses now and then. The professionals know how to control those losses.

9. VCI Global (NASDAQ: VCIG) — The New Microsoft Partnership Penny Stock

My ninth AI stock pick is VCI Global (NASDAQ: VCIG).

If you’re ever wondering what a hot catalyst looks like.

When it comes to penny stocks … a partnership with a large and legitimate company is about as good as it gets.

Why I Like It

On August 23, VCIG announced a collaboration with Microsoft Azure OpenAI. Which basically means, they’re using Microsoft AI now.

It checked all the boxes … 

• 2 million share float (Low share supply)
• AI news (Microsoft AI platform “collaboration”)
• Spiked 80% in premarket (Spikers above 20% can keep spiking)
• Trading volume of 60 million shares on Day One (Float rotation)
• History of spiking (Past spikers can spike again)

It seems like a long list to keep track of.

But the more experience you have in the market, the more this becomes second nature.

We’re looking for the best plays. The stocks that can satisfy the checklist above are considered solid trade setups.

If you’re looking for more, this is the kind of setup we scan for every day on Daily Income Trader.

10. Applied Optoelectronics Inc. (NASDAQ: AAOI) — The Other Microsoft Partnership Penny Stock

My tenth AI stock pick is Applied Optoelectronics Inc. (NASDAQ: AAOI).

Last but certainly not least … another Microsoft penny stock.

After the tenth stock, I hope you start to understand the overwhelming opportunity in this niche.

You don’t have to trade all of them.

But it’s almost a crime to completely ignore this volatility.

Why I Like It

I love stocks that follow support and resistance.

And since AAOI announced Microsoft news on June 22, it’s been a textbook runner … 

The spikes become support for future price action and there are clear lines of resistance to break through.

The clean chart makes it easier to trade.

Volatility is necessary for profits. But if the chart is so volatile we can’t see a pattern, we should move on.

You might have noticed that AAOI’s Microsoft partnership came a few months before VCIG. AAOI’s prices are still trading near their highs. Keep that in mind when planning your trades.

A lot of penny stock spikes ultimately come crashing back down.

Only risk what you can afford to lose and make sure to plan your trades around support and resistance.

Key Takeaways

Trading AI penny stocks can offer opportunities for gains, but it also comes with risks. As traders, we need to understand these risks and make informed decisions. We don’t just blindly invest in AI stocks; we trade them based on patterns, data, and market insights. And remember, small gains add up. Don’t get caught up in the hype of AI; focus on the facts, the data, and the patterns. That’s how we trade AI penny stocks.

These stocks follow the rules of all hot sectors. They’re good for trading because they’re hot…

That’s the same thing that makes them dangerous when their sector cools down.

It isn’t enough to form a thesis on which stocks to buy. Making a profit depends on a good trading plan.

And that depends on your stock research and analysis tools.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. 

It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Trading can be dangerous. Most traders lose money.

A 2019 study called “Day Trading for a Living?” looked at the success rates of Brazilian traders over a 2-year window, and found that 97% of traders with more than 300 days of active trading lost money. Only 1.1% earned more than the Brazilian minimum wage — that’s only $16 per day!

If you want to be part of the 1%, make sure you outwork the rest!

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.