Hot Penny Stocks to Buy in 2025

Navigating the vibrant world of penny stocks presents an exciting, albeit intricate, pathway for beginner investors. Penny stocks, characterized by their low share price, offer a unique entry point into the stock market. They also offer a BIG challenge.

You can’t just invest in a penny stock and let it cook. That’s how you go broke.

Read this article because it offers some of my top penny stock picks for beginners, giving you a strategic entry point into building your own watchlists..

I’ll answer the following questions:

• What is a penny stock?
• Which penny stocks are most active?
• What are the top penny stocks for beginners?
• How can beginners navigate the risks of penny stock trading?
• What strategies can be employed for making money with penny stocks?
• How does social media influence penny stock trading?
• What are the risks of investing in penny stocks?
• How can traders minimize risks when investing in penny stocks?

Let’s get to the content!

Top Penny Stocks List for Beginners

My top 5 stock picks are:

• NASDAQ: APLD — Applied Digital Corp — The AI Penny Stock That NVIDIA Is Still Invested In
• NASDAQ: TRNR — Interactive Strength Inc. — The Fitness Penny Stock With Acquisition News
• NASDAQ: MARA — Marathon Digital Holdings Inc. — The Bitcoin Miner Betting Big on AI
• AMEX: KULR — KULR Technology Group Inc. — The EV Penny Stock With a Side Of Bitcoin Volatility
• NASDAQ: RGTI — Rigetti Computing Inc. – The Quantum Leader With a Big Partnership

For beginners, diving into penny stocks requires careful selection to navigate the inherent risks successfully. A list of top penny stocks for beginners should consider factors like trading volume, company fundamentals, recent news, and market position. While specific stock recommendations fluctuate over time, focusing on sectors with growth potential or companies showing strong management can be a good starting point.

Platforms like Robinhood offer tools to monitor and trade these stocks effectively, making it easier for beginners to get started. Staying informed and vigilant can significantly enhance your chances of success in penny stock trading.

Check out my Robinhood watchlist here!

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 in this article. 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!

Best Penny Stocks to Buy in 2025

Stock Ticker	Company	Performance (YTD)
NASDAQ: APLD	Applied Digital Corp	– 9.29%
NASDAQ: TRNR	Interactive Strength Inc	– 53.82%
NASDAQ: MARA	Marathon Digital Holdings Inc	– 28.60%
AMEX: KULR	KULR Technology Group Inc	– 49.84%
NASDAQ: RGTI	Rigetti Computing Inc	– 55.35%

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

My first penny stock pick is Applied Digital Corp (NASDAQ: APLD).

On September 5, 2024, APLD started moving with news that NVIDIA (among other investors) bought a stake in the stock.

We’ve seen NVIDIA investments act as strong catalysts before … 

• Serve Robotics Inc. (NASDAQ: SERV)
• SoundHound AI Inc. (NASDAQ: SOUN)

NVDA is still arguably the most popular AI stock in the U.S. market.

It holds a $3 trillion valuation. And it’s positioned to continue its dominance in the microchip industry.

Penny stocks like APLD have a lot to gain from NVIDIA’s investment announcements.

APLD was trading under $4 in September 2024, before the market learned of the NVIDIA investment.

Share prices reached $12 a few months later, on February 21, 2025. It spiked 280%* in total.

The price fell from those highs in late February, but NVIDIA is still holding onto APLD shares. 

That bullish sentiment means that we could see a rally from this stock in March.

Interactive Strength Inc. (NASDAQ: TRNR) — The Fitness Penny Stock With Acquisition News

My second penny stock pick is Interactive Strength Inc. (NASDAQ: TRNR).

This isn’t just another random penny stock. TRNR made waves with news of its planned acquisition of Sportstech, a fitness equipment company with a solid footprint in Europe. Traders love a good acquisition story — especially when it comes with raised revenue guidance for the year. The company’s now targeting $50 million in revenue for 2025, which is a big step up for a stock that was basically off the radar a month ago.

The big spike came after the deal was announced, but now we’re watching to see if TRNR can actually hold the gains and start to build a real trend. I like the ambition here — but ambition doesn’t pay bills. Execution does. If TRNR starts slipping back toward pre-news levels, this could turn into just another overhyped runner that gave it all back.

For now, I’m watching for signs that it can hold higher lows and attract real volume — not just short-term momentum traders piling in and out. If the deal closes and we see some actual numbers to back up the hype, this could stay interesting.

Marathon Digital Holdings Inc. (NASDAQ: MARA) — The Bitcoin Miner Betting Big on AI

My third penny stock pick is Marathon Digital Holdings Inc. (NASDAQ: MARA).

Next up is Marathon Digital Holdings Inc. (NASDAQ: MARA), one of the most well-known crypto stocks on the market.

MARA crushed earnings — no other way to say it. Revenue jumped 37%, Bitcoin production is still strong, and the company stacked 18,146 new Bitcoin onto its balance sheet in Q4 alone. That’s a serious pile of digital gold.

But here’s the real twist — MARA isn’t just mining Bitcoin anymore. Management is talking up plans to become the infrastructure layer for AI inference — essentially positioning their data centers to handle the massive computing power AI apps require. It’s an ambitious pivot, but it makes sense. AI and Bitcoin both rely on serious hardware, and MARA wants to monetize that capacity every way they can.

Check out my full AI penny stocks watchlist here!

The stock popped after earnings, and with Bitcoin pushing toward all-time highs, MARA has wind at its back. That said, Bitcoin miners are notoriously volatile, and this one loves to give back gains when the broader market pulls back.

For now, I’m watching to see if MARA can hold its post-earnings spike and build a higher base. If Bitcoin breaks out again, MARA could ride the wave. If Bitcoin stalls, this thing could easily fade. It’s a classic sector-sympathy trade — just with more headlines.

KULR Technology Group Inc. (AMEX: KULR) — The EV Penny Stock With a Side Of Bitcoin Volatility

My fourth penny stock pick is KULR Technology Group Inc. (AMEX: KULR).

KULR is your typical shifty penny stock. Officially, they’re in the thermal management business, making cooling tech for batteries and high-performance electronics…

But lately? KULR’s been acting more like a Bitcoin holding company. They’ve been selling stock like crazy, using the proceeds to buy Bitcoin for their corporate treasury. That strategy worked wonders for MicroStrategy (NASDAQ: MSTR) — but KULR is no MicroStrategy.

Traders are watching KULR because of the combination of speculative buzz and actual partnerships — like the deal they signed with Worksport to enhance battery tech and US manufacturing. They’ve also got an AI cooling partnership in Taiwan with EDOM Technology. That’s enough to keep this on the radar.

But if Bitcoin pulls back — or if KULR keeps flooding the market with new shares — this could unravel fast. For now, I’m treating this like a momentum play with a side of Bitcoin volatility. It’s not an investment. It’s a trade — and a risky one at that.

Rigetti Computing (NASDAQ: RGTI) – The Quantum Leader With a Big Partnership

My fifth penny stock is Rigetti Computing (NASDAQ: RGTI).

The Nvidia GTC conference just wrapped up, and as expected, CEO Jensen Huang’s comments sent shockwaves through the AI and quantum computing sectors. Traders hoping for a bullish push on quantum computing stocks got the opposite—Huang cast more doubt on the space, triggering another sell-off.

Quantum stocks got crushed. D-Wave Quantum (QBTS) dropped 21%, Quantum Computing Inc. (QUBT) fell 14%, Rigetti Computing (RGTI) lost 11%, and IONQ (IONQ) sank 9%. Huang’s offhand remark—“I didn’t know they were public. How can a quantum company be public?”—was all it took to spook traders.

This was a continuation of the biggest voice in quantum and AI spaces taking the air out of room. Back in January, he warned that “very useful” quantum computers are likely decades away…

Now, at GTC, he reinforced that skepticism, causing another wave of selling.

None of this cancels out the fact that RGTI has a strong catalyst—its new partnership with Taiwan-based Quanta Computer, a $43 billion hardware manufacturing giant.

Check out the latest RGTI news here!

Quanta is investing $35 million in Rigetti, with $500 million dedicated to an overall quantum development pipeline. RGTI is on track to roll out a 36-qubit system this quarter, with a 108-qubit system expected by year-end. That’s real progress—something most quantum stocks can’t claim.

*Past performance doesn’t indicate future results.

Performance Analysis of Selected Stocks

Evaluating the performance of penny stocks involves examining their price history, trading volume, and recent company developments. This analysis helps in understanding the stock’s volatility and potential for gains. Tools and resources like financial news websites, stock analysis apps, and penny stock newsletters can offer valuable information for this purpose.

What Is a Penny Stock?

A penny stock typically trades at less than $5 per share. Primarily found on smaller exchanges and over-the-counter (OTC) markets, these stocks represent companies with lower market capitalizations. Intriguing for investors due to their low price and potential for substantial returns, penny stocks also carry a higher level of risk and volatility compared to established company stocks listed on major exchanges like Nasdaq or the New York Stock Exchange (NYSE).

Most Active Penny Stocks

Most active penny stocks are those with the highest trading volumes within a specific period. This activity can indicate investor interest and potential market movements, providing insights but also reflecting the speculative nature of these investments. Tracking volume along with price movements can help identify active penny stocks that might offer profitable opportunities.

How to Know Which Penny Stocks To Buy Now

Identifying the right penny stocks to buy now can feel like finding a needle in a haystack. The first step is to focus on small-cap companies with solid business models. These companies often fly under Wall Street’s radar, making for opportunities that bigger players might overlook. Keep an eye on their financials, looking for consistent revenue growth, manageable debt levels, and strong cash flow. This sets a foundation for identifying potential winners.

Another big thing I recommend is staying updated with news and industry trends. Follow financial columns and use a trading calendar to monitor upcoming events that could impact stock prices. You need to stay ahead of the game if you want to trade these stocks, tracking market sentiment and identifying catalysts such as earnings reports or product launches. Stock screeners can help narrow down your choices, making the research process more efficient.

If you’re looking for indicators, look first at the stock’s trading volume. High volume indicates higher liquidity, which is crucial for entering and exiting positions quickly. Brokers often provide insights into the most traded penny stocks, helping you spot trends. Remember, liquidity is your friend in the volatile world of penny stocks, ensuring you can capitalize on opportunities without getting stuck.

There are a ton of ways to identify good trade candidates — so many that I wrote a whole article on them! Check out my guide on How to Find and Trade Penny Stocks here.

How to Choose Penny Stocks That Will Explode

Choosing penny stocks that will explode involves more than just luck. Start by analyzing the company’s fundamentals and potential for growth. Look for companies with innovative ideas or hot products. Do your due diligence on their business plan, management, and path to profitability. This approach reduces the risk and increases the chances of finding a stock that might make a run.

Pay attention to market trends and sectors gaining momentum. Crypto and clean energy stocks were two of the hottest sectors in recent years. Monitoring sectors like these can provide insights into which penny stocks might be next to explode. Use tools and resources available through your broker to stay informed about these trends. Keep a watchlist and review it regularly, adjusting based on new information and market conditions.

Biotech stocks are some of the most explosive penny stocks due to their innovative nature and the critical role they play in healthcare advancements. Companies in this sector can experience significant price movements based on clinical trial results, FDA approvals, and other milestones — much of it based on news and the resulting intraday moves.

You need to build a watchlist if you want an advantage in trading these stocks. Check out my top biotech stock picks here.

Technical analysis should play a big role in choosing penny stocks. Look for patterns and indicators that signal a potential breakout. High relative volume, strong support levels, and bullish chart patterns can all indicate a stock ready to take off.

You should combine technical analysis with fundamental research to ensure you are making well-informed decisions. This combined approach leverages both market data and business insights, giving you a better chance of picking a winner.

Reasons for Investing in Penny Stocks

The allure of penny stocks comes from their low entry cost and the potential for significant returns. For traders willing to take on higher risks, penny stocks can provide a platform for learning about the stock market dynamics while potentially growing a small initial investment.

Strategies for Making Money in Penny Stocks

Successful trading in penny stocks involves a mix of thorough research, setting clear investment goals, and employing risk management strategies. Understanding the sectors you invest in, using stop-loss orders to manage risks, and keeping informed through reliable news sources are essential tactics.

Social media platforms have become influential in the world of penny stocks, creating unique opportunities and risks for traders. The collective power of online communities can drive significant price movements, making it essential for traders to stay informed about trending discussions. However, navigating this landscape requires a discerning approach to differentiate between hype and genuine investment opportunities. For insights into how Reddit impacts penny stock trading and tips on leveraging social media for informed trading decisions, explore the influence of Reddit on penny stocks.

Risks of Investing in Penny Stocks

The volatility of penny stocks introduces a heightened risk of loss. Issues like limited liquidity, less regulatory oversight, and susceptibility to market manipulation can pose significant challenges. Beginners must approach penny stock investments with caution, prepared for the possibility of losing their entire investment.

How to Avoid Penny Stock Risk

Navigating penny stock investments with minimized risk involves diligent research and strategic planning. Looking beyond mere stock price and delving into company performance, market trends, and financial health are critical steps.

Finding and Evaluating Penny Stocks

Effective evaluation of penny stocks requires accessing reliable data and analysis tools. Investors should look for companies with solid fundamentals, including growing revenues, manageable debt levels, and potential for market expansion. Utilizing resources like penny stock-specific newsletters and platforms can also provide curated insights.

Finding high-potential penny stocks is a challenge that requires the right tools. Penny stock screeners are invaluable for filtering through thousands of stocks to find those that meet your specific criteria, such as volume, price changes, and market sectors. These tools can significantly enhance your ability to identify investment opportunities quickly and efficiently. To discover the top penny stock screeners that can help you pinpoint the best trading opportunities, check out the best screeners for penny stocks.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

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!

Frequently Asked Questions

Can You Get Rich Buying Penny Stocks?

While penny stocks offer the potential for significant returns, they also come with a high risk of loss. Success in penny stock investing requires careful selection, patience, and a keen understanding of market dynamics.

Which Penny Stock Is Best?

The “best” penny stock varies over time, influenced by market conditions, company performance, and sector trends. Investors should focus on stocks with solid fundamentals, active trading volumes, and potential for growth.

What Are the Hottest Penny Stocks?

Identifying hot penny stocks involves looking for companies in emerging sectors with strong growth potential, positive financial indicators, and recent news that could positively impact stock prices. Regularly monitoring market trends and analyses can help pinpoint these opportunities.

What Are the Basics of Penny Stocks, and How Do Beginners Start?

Penny stocks are shares of small companies trading at low prices, often below $5. Beginners interested in these investments should start by understanding the nature of penny stocks and the securities market. Gaining knowledge about PE ratios helps assess the company’s valuation relative to its earnings. For those looking to invest, creating an account with a brokerage that offers a robust mobile app and browser platform is crucial for accessing penny stock markets.

How Can Investors Identify Promising Penny Stocks?

Identifying promising penny stocks involves researching gainers and IPOs, as these can indicate companies with potential for growth. Utilizing funds wisely and building a diversified portfolio can mitigate risks associated with penny stock investments. It’s important to track the performance of these stocks, using articles and reports from reputable sources, to maintain an up-to-date investment strategy.

What Is a Penny Stocks List?

A penny stocks list typically includes stocks trading under $5, offering high volatility and potential for quick gains, though it also involves significant risk, often resulting in losers alongside winners. Unlike ETFs, which provide diversified exposure to various sectors, penny stocks require careful research and active trading strategies to succeed. For those new to finance, understanding the risks and rewards of penny stocks is crucial before diving into this volatile market.

What Should Beginners Know About Buying and Selling Penny Stocks?

Beginners should understand the dynamics between buyers and sellers in the penny stock market. The process involves analyzing when to buy or sell based on profits, losses, and the upside potential of a stock. Tools like a mobile app or browser-based trading platform can facilitate these transactions, allowing investors to act quickly on market movements.

How Important Are Resources and Tools for Penny Stock Investors?

Resources such as articles, YouTube tutorials, and LinkedIn groups can provide valuable insights into penny stock investing. Additionally, utilizing services like portfolio tracking apps and accessing financial reports through a site map or menu on a brokerage website can enhance investment decision-making. It’s also essential to heed the disclaimer provided by authors or platforms offering investment advice to understand the risks involved.

What Role Does Market Research Play in Penny Stock Investing?

Market research is crucial for understanding the track record of penny stocks and their issuing companies. This can include reading IPO analyses, examining gainers lists for recent performers, and considering commodities as alternative or complementary investments. Accessing this information through various channels, including mobile apps, dedicated financial news sites, and social media platforms like YouTube and LinkedIn, can provide a comprehensive view of potential investments.

How Can Beginners Navigate Financial Information for Penny Stocks?

Beginners should familiarize themselves with financial terminologies like PE ratio, securities, and commodities. Resources like YouTube for educational content, LinkedIn for professional advice, and financial sites for articles and reports offer a wealth of information. Understanding these basics helps in evaluating penny stocks and making informed decisions based on their financial health and market potential.

Understanding Penny Stocks in India: What Beginners Should Know?

For beginners interested in penny stocks within India, it’s essential to start with familiarizing oneself with the NSE (National Stock Exchange), where many penny stocks are listed. Look for names and symbols of companies that have shown potential as gainers. Researching these companies’ performance through their financial reports and tracking their stock prices on the NSE page can provide insights into their viability. Additionally, consider the volume (number) of shares traded, as this can indicate liquidity and interest in the stock. Using services like brokerage accounts that offer detailed analysis and results can significantly aid in making informed decisions.

How Do You Evaluate Penny Stocks for Investment?

Evaluating penny stocks requires paying attention to the amount of investment you’re willing to allocate and understanding the benefits and risks associated with these types of securities. Analyzing past profits and the potential upside of penny stocks can guide your sell or hold decisions. Utilizing tools like mobile apps or websites where you can find links to in-depth articles, YouTube channels for financial education, and platforms offering up-to-date market results can be invaluable. Always ensure you’re consulting a variety of sources to get a well-rounded view of the penny stock market.

What Resources Can Help Beginners Navigate Penny Stock Investing?

Beginners can navigate penny stock investing by leveraging a mix of products and services designed to simplify the trading process. Look for platforms that offer a comprehensive site map or menu, allowing easy access to various pages dedicated to penny stocks, including tutorials, symbols, and market trends. Engaging with financial communities on LinkedIn and following channels on YouTube that specialize in penny stock investing can offer practical tips and things to watch out for. Lastly, always cross-reference the information you find with links to authoritative reports and analyses to validate your investment decisions.