Apr. 4, 2025 at 12:59 PM ET6 min read

AI Penny Stocks to Watch in April 2025

Tim BohenAvatar
Written by Tim Bohen
Fact-checked by Bryce Tuohey

The AI trade isn’t just for the trillion-dollar tech giants anymore. A new wave of small-cap AI names is surging into the spotlight — and traders are watching closely for momentum continuation, short squeeze setups, and sector sympathy moves.

Here are three AI penny stocks making noise right now:

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3 Artificial Intelligence Stocks to Watch in April 2025

My top 3 AI stocks to watch in April 2025 are:

  • NASDAQ: MLGO — MicroAlgo Inc — The Short Squeeze AI Penny Stock
  • NASDAQ: CXAI — CXApp Inc. — The AI Penny Stock Earnings Winner
  • NASDAQ: CRWV — CoreWeave Inc. — The $25 Billion AI Cloud IPO Everyone’s Watching

Check out my complete AI stock watchlist here!

Stock Ticker Company Performance (YTD)
NASDAQ: MLGO MicroAlgo Inc + 393.23%
NASDAQ: CXAI CXApp Inc – 46.75%
NASDAQ: CRWV CoreWeave Inc + 21.43%

Let’s get to the picks…

1. MicroAlgo Inc. (NASDAQ: MLGO) — The Short Squeeze AI Penny Stock

MLGO has now earned a place on multiple watchlists after a series of violent short squeezes in Q1 and into April.

  • February 21: Spiked 910%* intraday
  • March 24: Ripped 500%* after announcing a share offering
  • End of March: Continued trending, fueled by aggressive short covering

What should have been a dilution death sentence turned into rocket fuel, proving once again that in this market, “bad” news can be the setup.

Why it’s in focus:

  • WIMI Hologram Cloud increased its stake to 67.65%
  • A new quantum algorithm product, paired with a convertible bond deal, brings in speculative flows
  • Low float + repeated squeezy price action = a trader’s dream

What to watch:

Look for MLGO to show VWAP holds, failed fades, or midday breakouts. This ticker’s personality is extreme — use tight risk controls, but don’t ignore the upside.

2. CXApp Inc. (NASDAQ: CXAI) — The AI Penny Stock Earnings Winner

CXAI just posted record 2024 results, showing strong momentum behind its AI-powered Return-To-Office (RTO) and employee engagement platform. The stock spiked over 50% after hours on April 3 following its Q4 earnings call — a clean catalyst with real numbers behind it.

Key earnings highlights:

  • Subscription revenue jumped to 87% of total revenue (up from 78%)
  • Net Revenue Retention hit 101% (from 73%)
  • Gross margin increased to 82%
  • Operating expenses cut by 20% while EBITDA rose 30%
  • Strategic partnership with Google Cloud for Agentic AI development

Why it’s in focus:

  • Breakout off earnings with a technical gap over resistance
  • Strong SaaS metrics in a beaten-down microcap AI name
  • Float remains tight enough for outsized moves

What to watch:

This has a classic earnings gap setup. Watch for gap-fill attempts, consolidation around $1.00–$1.10, and possible re-test of Thursday’s after-hours high ($1.30). Volume matters — if this catches volume, it could quickly reclaim momentum.

More Breaking News

3. CoreWeave Inc. (NASDAQ: CRWV) — The $25 Billion AI Cloud IPO Everyone’s Watching

CRWV is the big-money AI infrastructure play that just came public on March 28. It’s not a penny stock by price — but it’s trading like one in terms of volatility.

The company runs GPU cloud infrastructure for AI, and its backers include Nvidia and OpenAI. After a quiet IPO debut, CRWV surged 42% on April 1 before pulling back.

Why it’s in focus:

  • Revenue exploded from $16M in 2022 to $1.9B in 2024 — a 119x jump
  • Early signs of IPO mania building (see: Newsmax)
  • Nvidia-backed, but still trading under the radar compared to peers

What to watch:

Watch for news catalysts, analyst coverage, and volume spikes on tariff or tech headlines.

This is also the most likely of the three to attract institutional flow.

 

* Past performance doesn’t indicate future results.

Volatility Driving Opportunity in AI Speculation

The market right now is a volatile battleground shaped by tariffs, tech rotation, and macro uncertainty … which is good for traders like us!

Trump’s April 2 “Liberation Day” tariff rollout has added a new layer of risk to global trade. While large caps like Nvidia and AMD are selling off on fears of supply chain disruption and foreign retaliation, small-cap AI stocks are seeing a rotational bid from traders chasing volatility and news catalysts.

The Nasdaq is officially in correction territory, down more than 14% from its December highs. That kind of weakness in big tech often funnels speculative capital into cheaper, faster-moving plays — especially ones with AI buzz, IPO hype, or short-squeeze setups.

With fear elevated and fundamentals taking a backseat, momentum, catalysts, and liquidity are the key variables. For traders who can stay nimble and manage risk, this is a prime environment to catch outsized moves in the right setups.

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

If you want to trade like a pro, you need pro-level tools. Try StocksToTrade for 14 days — it’s only $7.

Final Take: The Setup Is Bigger Than the Tickers

Each of these names — MLGO, CXAI, and CRWV — is riding a different angle of the same macro trend: AI hype meets microcap momentum.

  • MLGO is your low-float short squeeze play
  • CXAI is the post-earnings breakout setup
  • CRWV is your high-beta IPO momentum name with institutional backing

This is a market tailor-made for traders who are prepared. AI penny stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

If you want to know what I’m looking for—check out my free webinar here!