Artificial intelligence remains one of the hottest themes in the market — and that heat is spilling over into penny stocks and turnaround plays. From AI-powered drug discovery to meme-fueled squeezes and speculative battery breakthroughs, traders are betting big on riskier AI names with massive upside…
And equally massive downside!
Check out my AI penny stocks watchlist for more picks!
Here are three high-volatility AI stocks under $10 that are moving — and why they deserve a spot on your radar (but not necessarily your portfolio).
3 AI Penny Stocks To Watch This Week
| Stock Ticker | Company |
| NASDAQ: RXRX | Recursion Pharmaceuticals Inc. |
| NYSE: SES | SES AI Corporation |
| NYSE: WOLF | Wolfspeed Inc. |
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1. Recursion Pharmaceuticals Inc. (NASDAQ: RXRX) — AI-Powered Drug Discovery on the Cheap
Recursion is one of the most aggressive plays in AI drug discovery. The company’s RecursionOS platform, built in partnership with NVIDIA, uses machine learning to simulate millions of biological interactions — identifying potential treatments faster than traditional R&D pipelines. It’s a bold, moonshot model in biotech, and it’s one that Cathie Wood’s ARK Invest is already heavily backing.
Shares are down over 20% YTD despite major AI milestones, including its recent acquisition of REV102 — a potential oral treatment for a rare bone disorder. With short interest rising and AI still a dominant theme, RXRX could be setting up for a “buy the dip” scenario.
Why traders are watching RXRX:
- Flagship AI platform RecursionOS could reshape biotech R&D
- Cathie Wood’s ARK holds a $160M+ position — a rare AI penny play in her portfolio
- Recent acquisition of REV102 adds to long-term pipeline potential
The risk: RXRX has no Phase 3 drugs, a history of clinical setbacks, and heavy cash burn. A turnaround is possible — but it’s far from guaranteed.
2. SES AI Corp. (NYSE: SES) — Battery Innovation Meets AI Hype
SES is trying to marry AI with energy storage — developing next-gen Li-Metal and Li-ion batteries using machine learning to accelerate materials science. Its “Molecular Universe” software just launched, and could cut development time for advanced batteries by years.
Recent catalysts include a $30M buyback program, solid Q1 earnings (EPS beat by $0.02), and the company reaffirming 2025 revenue guidance — even as it continues burning cash. Traders love the AI angle, and the stock is still hovering near lows, making it a volatile breakout candidate ahead of its August 4 earnings.
Why traders are watching SES:
- Unique AI energy play targeting the high-growth EV battery market
- Buyback authorization shows management confidence
- Shares up 12% in recent sessions on software buzz
The risk: SES’s financials are weak, with deep negative margins and heavy losses. The story depends on long-term tech adoption — not near-term profits.
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3. Wolfspeed Inc. (NYSE: WOLF) — Bankrupt But Squeezing
Wolfspeed is the definition of a meme-stock wildcard. The company filed for Chapter 11 bankruptcy in June after a brutal first half of 2025, where shares collapsed over 90%. But since then? The stock has exploded over 260%* in July, fueled by short covering, meme speculation, and the hiring of a new CFO with deep restructuring experience.
Fundamentals are still a disaster — negative gross margins, collapsing sales, and delisting risk. But that hasn’t stopped retail traders from pushing WOLF higher. It’s now trading in the $1.40–$1.70 range with wild intraday swings and massive volume.
Why traders are watching WOLF:
- Classic bankruptcy meme rally — high risk, high reward
- Short squeeze potential as new management restructures
- Speculative breakout setup if it avoids delisting
The risk: Shareholders may only retain 3%–5% of the restructured company. Bankruptcy restructuring math doesn’t lie — this is a trader’s game, not an investment thesis.
* Past performance doesn’t indicate future results
Final Thoughts
These three names couldn’t be more different — AI drug discovery (RXRX), speculative energy tech (SES), and a bankrupt meme squeeze (WOLF). But what they share is volatility, trader attention, and big upside if the stars align.
If you’re going to trade these, stay disciplined. Tight risk management is key. These aren’t “buy and hold forever” plays — they’re fast-moving setups that require a clear plan.
If you want to know what I’m looking for — check out my free webinar here!
This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.
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