Artificial intelligence (AI) stocks dominated the headlines in 2024, and they aren’t slowing down in 2025. The sector continues to produce some of the market’s biggest gainers — and riskiest trades.
If you’re trading AI stocks, you need a plan. These stocks move fast, and without a strategy, it’s easy to get caught chasing hype. I’m building my plans now — here’s what I’m watching this month.
3 Artificial Intelligence Stocks to Watch in March 2025
My top 3 AI stocks to watch in March 2025 are:
- NASDAQ: MLGO — MicroAlgo Inc — The Short Squeeze AI Penny Stock
- NASDAQ: APLD — Applied Digital Corp — The AI Penny Stock That NVIDIA Is Still Invested In
- NASDAQ: NVDA — NVIDIA Corp — The AI Earnings Winner That Couldn’t Stop the Sell-Off
Check out my complete AI stock watchlist here!
| Stock Ticker | Company | Performance (YTD) |
| NASDAQ: MLGO | MicroAlgo Inc | + 5.34% |
| NASDAQ: APLD | Applied Digital Corp | – 8.40% |
| NASDAQ: NVDA | NVIDIA Corp | – 15.41% |
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 modeling here. Pay attention to the work that goes in — not just the picks themselves.
Let’s get to the picks…
MicroAlgo Inc. (NASDAQ: MLGO) — The Short Squeeze AI Penny Stock
My first AI penny stock to watch is MicroAlgo Inc. (NASDAQ: MLGO).
MicroAlgo Inc. (NASDAQ: MLGO) gave traders one of the most extreme short squeezes of the year so far.
On February 21, the stock spiked 910%* in a single day — running from under $2 to over $11. That kind of move only happens when a stock combines two powerful ingredients: a tiny float and way too many short sellers.
Short squeezes are the ultimate trap for stubborn short sellers. They see a low-quality stock spiking with no news and assume it has to fall. But when the stock keeps climbing, shorts are forced to buy back shares at any price — pushing the stock even higher.
There was no clear news to justify MLGO’s move. That’s what made it a perfect short squeeze setup.
StocksToTrade data shows MLGO’s float at just 6.3 million shares. That’s extremely low, which made the squeeze even more violent.
The first squeeze is over — but past spikers can spike again. That’s why MLGO stays on my radar for March. If volume comes back and the stock starts moving without news, I’ll be watching closely for the next setup.
Applied Digital Corp. (NASDAQ: APLD) — The AI Penny Stock That NVIDIA Is Still Invested In
My second AI penny stock to watch is Applied Digital Corp. (NASDAQ: APLD).
Applied Digital Corp. (NASDAQ: APLD) is still riding the ripple effect from its September 2024 news — when NVIDIA (NASDAQ: NVDA) took an equity stake in the company.
This isn’t the first time we’ve seen a penny stock rocket higher after NVIDIA investment news. Serve Robotics (NASDAQ: SERV) and SoundHound AI (NASDAQ: SOUN) followed the same script in 2024.
APLD spiked from under $4 to $12 in the months following NVIDIA’s investment. It’s given back some of those gains, but NVIDIA still owns shares — and that’s keeping traders interested.
Here’s why APLD is a top watch in March: NVIDIA just reported another massive earnings beat on February 26. Revenue hit $39.3 billion — smashing expectations — and Jensen Huang delivered more bullish commentary about AI demand.
That puts APLD in a great spot as a sympathy play. If NVIDIA holds strong and AI hype stays hot, APLD could easily catch another wave of momentum.
That’s the opportunity. But I’m not blindly buying. I’ll wait for the chart to show me clear support, volume, and a tradeable breakout.
More Breaking News
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- Nu Holdings Stock Soars: Explanation of the Recent Swell
NVIDIA Corp. (NASDAQ: NVDA) — The AI Earnings Winner That Couldn’t Stop the Sell-Off
My third AI stock to watch is NVIDIA Corp. (NASDAQ: NVDA).
This definitely isn’t a penny stock… but it influences all AI penny stocks.
NVIDIA Corp. (NASDAQ: NVDA) delivered strong earnings on February 26 — but the stock still took a beating.
Here’s the data:
- Earnings per share came in at $0.89, beating expectations by $0.04.
- Revenue reached $39.33 billion, topping estimates by $1.17 billion.
On paper, that’s a huge win. But NVIDIA’s stock dropped more than 8% the next day.
This is a classic case of sky-high expectations meeting reality. NVIDIA’s numbers were great — but traders expected perfection. With the broader AI sector under pressure, even an earnings win wasn’t enough to stop the sell-off.
It wasn’t just NVIDIA. The whole semiconductor sector fell hard, with the semiconductor index (SOX) dropping 6% and the Nasdaq Composite down nearly 3%.
There’s also a geopolitical risk factor in play. Traders are worried that tighter U.S. restrictions on AI chip exports to China could hit NVIDIA’s revenue. That fear is keeping pressure on the stock.
The big picture for NVIDIA hasn’t changed. It’s still the most advanced AI company in the world — and it’s positioned to dominate both AI training and inference.
NVIDIA’s new Blackwell platform is specifically designed for inference — the process of running AI models in the real world. That’s a huge shift from the training-heavy focus of the past few years.
Blackwell’s architecture gives NVIDIA a massive edge in this new phase of AI. Early sales are already tilting toward inference workloads — exactly what NVIDIA predicted.
Even so, the stock’s short-term direction will depend on broader market sentiment. If AI stocks rebound, NVIDIA could lead the charge. If the sell-off continues, it could break support and accelerate lower.
For traders, this is a perfect wait-and-see situation. No bagholding — just watch the price action and let the setup come to you.
* Past performance does not indicate future results
Key Considerations for Trading AI Stocks
AI stocks move fast. If you’re serious about trading them, you need the right tools.
That’s why I recommend using a platform like StocksToTrade. It’s designed for active traders, with:
- Real-time news scanning
- Social media sentiment analysis
- Customizable charting
- Built-in scans for low float runners and top percent gainers
Final Thoughts on AI Stocks
These stocks are hot — but that doesn’t make them automatic winners.
The best trades come from clear setups with strong volume and defined risk levels. That’s what I’m looking for with MLGO, APLD, NVDA, and the rest of my watchlist this month.
If you want to improve your trading, join my free daily live trading sessions. I break down real-time trade plans and help traders navigate the market with confidence every day!
What AI stocks are you watching in March? Drop a comment and let me know!