Feb. 26, 2025 at 6:22 PM ET3 min read

AI Penny Stocks to Watch: The NVDA Earnings Effect

Tim BohenAvatar
Written by Tim Bohen

Nvidia (NASDAQ: NVDA) just delivered another monster earnings report, once again proving why it’s the undisputed leader of the AI trade. With record-breaking revenue of $39.3 billion for Q4, a forecasted $43 billion next quarter, and the fastest product ramp in company history with its new Blackwell AI chips, the market is paying attention.

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NVDA’s earnings aren’t just a tech sector event—they set the tone for AI stocks across the board, from mega-cap names to the smallest AI penny stocks. And when Nvidia moves, AI penny stocks react.

Here’s a breakdown of the AI penny stocks to watch after Nvidia’s latest earnings.

Check out my full AI penny stock watchlist here!

Applied Digital Corp (NASDAQ: APLD) – The AI Penny Stock That Nvidia Is Still Invested In

APLD is one of the few AI penny stocks that Nvidia has kept a stake in—and that alone makes it worth watching.

  • Nvidia first invested in APLD on September 5, 2024.
  • The stock ran from under $4 to $12 in February 2025—a 280% move.
  • After a pullback, APLD is still holding gains and could set up for another push.

With Nvidia still backing the stock, APLD remains one of the best AI penny stock candidates for a bounce. If momentum in AI continues, this is a prime watch for March.

SoundHound AI Inc (NASDAQ: SOUN) – The AI Voice Stock Nvidia Dumped

SOUN soared 350%* in 2024 after Nvidia’s investment—but then came the bad news.

  • On February 14, Nvidia disclosed it sold its SOUN stake.
  • The stock instantly dropped 30% on the news.

So why is it still on the list?

Because penny stocks love a comeback story.

Even without Nvidia, SOUN is still an AI play in a hot sector. If buyers step in, it could set up for a reversal. The key is watching for strong price action and confirmation of a tradeable setup.

More Breaking News

Firefly Neuroscience Inc (NASDAQ: AIFF) – The Nvidia-Connected AI Biotech Play

AIFF exploded after joining Nvidia’s Connect program on February 11, running 450%* in just three days.

  • Ultra-low float of just 3.2 million shares—a recipe for massive volatility.
  • Past spikers can spike again—especially those with Nvidia-related news.

Traders should keep AIFF on their radar. The Nvidia connection is a proven catalyst, and AIFF’s low float means another surge could come fast.

* Past performance isn’t indicative of future results

Final Thoughts – Where Do AI Penny Stocks Go From Here?

Nvidia’s earnings reinforced the AI trade’s strength, but not all AI stocks will benefit equally.

  • APLD has Nvidia’s backing and is a top watch for continued momentum.
  • SOUN lost Nvidia’s support but still has room for a short-term bounce.
  • AIFF is a low-float rocket with a direct Nvidia connection.

With Nvidia’s dominance growing, AI penny stocks remain some of the most volatile and tradeable stocks in the market.

The key? Don’t chase hype—trade the setups.

Want to learn my strategy? Check out my free webinar here!