Top 7 Robinhood Penny Stocks to Watch in 2025

Penny stocks on Robinhood, typically priced at $5 or less per share, offer opportunities for traders who are building small accounts. While these stocks are affordable, they often come with higher volatility and require different strategies from those used for larger, more established stocks. For beginners, Robinhood provides a straightforward entry point into penny stock trading, thanks to its policy of no trading fees and no required minimum deposit. However, traders with more experience might consider other brokers that offer advanced features and tools for more complex trading needs.

7 Robinhood Penny Stocks To Watch

My top Robinhood penny stock watchlist picks for September 2025 — based on pattern, price action, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: IREN	IREN Ltd
NASDAQ: RIVN	Rivian Automotive Inc
NASDAQ: HWH	HWH International Inc
NASDAQ: INTC	Intel Corp
NASDAQ: RR	Richtech Robotics Inc
NASDAQ: SOUN	SoundHound AI, Inc
NASDAQ: OPEN	Opendoor Technologies Inc

The penny stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top Robinhood penny stocks!

List of the Hottest Penny Stocks on Robinhood in September 2025

My top 7 Robinhood penny stocks to watch for September 2025 are:

• NASDAQ: IREN — IREN Ltd — The AI Data Center Stock With the Nvidia Shoutout
• NASDAQ: RIVN — Rivian Automotive Inc — The Heavily Shorted EV Stock
• NASDAQ: HWH — HWH International Inc — The Low-Float Penny Stock Runner
• NASDAQ: INTC — Intel Corp — The Trump Administration Stake Chip Stock
• NASDAQ: RR — Richtech Robotics Inc — The AI-Driven Retail Automation Stock
• NASDAQ: SOUN — SoundHound AI, Inc — The Post-Spike AI Voice Stock
• NASDAQ: OPEN — Opendoor Technologies Inc. — The Meme Stock Grinder

I try to focus on the momentum that I can see with my eyes. I’m not going to speculate on future moves.

The key is to approach every day the same. Be prepared to capitalize on volatility.

I let the trades come to me.

That’s why I’m not holding any long-term positions in these tickers.

I’m just watching these stocks. And this is one of many watchlists I maintain…

Sign up here to get my weekly watchlist each Sunday!

There’s no guarantee that any of my watchlist picks will be tradeable. But if something happens, smart traders should be ready.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like IREN Ltd (NASDAQ: IREN) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are IREN Ltd (NASDAQ: IREN), SoundHound AI Inc (NASDAQ: SOUN), and Opendoor Technologies Inc (NASDAQ: OPEN).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable — you should never “invest” in them. Always trade with a plan.

Let’s get to the picks …

Best Robinhood Penny Stocks for September 2025

These are the top 7 Robinhood penny stocks to watch in September 2025…

They have a chance to catch fire…

Watch them — and don’t get burned!

IREN Ltd (NASDAQ: IREN) — The AI Data Center Stock With the Nvidia Shoutout

My first Robinhood penny stock pick is IREN Ltd (NASDAQ: IREN).

On August 29, IREN announced its second major GPU order: 1,200 air-cooled Nvidia B300s and 1,200 liquid-cooled GB300s.

It was a $168 million purchase tied to its expanding Canadian data center campus in Prince George, where a 10MW liquid-cooled facility is under construction.

This pushes IREN’s GPU total to 10,900 units across top-tier chips like the H100, H200, B200, B300, and GB300. That fuels a bold pivot into AI computation.

The company also recently joined Nvidia’s Preferred Partner program. A major hype boost that could unlock more bullish momentum. It also secured $96M in non-dilutive funding, showing strong execution and vendor trust.

IREN is one of the best performers early in September, hitting new record highs for three straight days.

On Tuesday, shares spiked to $29.85 intraday before closing up 9.93% at $29.11.

Q2 earnings were strong:

• Net income: $86.9M (vs. $28.9M loss YoY)
• Revenue: $501M, up 167.6% YoY

Why I Like It

IREN is transitioning fast from crypto to AI/cloud infrastructure.

With 3GW of grid power, a premium GPU stack, and a path to $1.25B annualized revenue, this is one of the most aggressive build-outs in the market.

Trade Potential:

• Bullish Scenario: Breakout above $30 could launch a move to $35–$40+
• Bearish Scenario: Below $25, watch for pullback to $22–$20 support

The bullish volatility is unmistakable on this stock. Keep an eye out for more momentum.

Rivian Automotive Inc (NASDAQ: RIVN) — The Heavily Shorted EV Stock

My second Robinhood penny stock pick is Rivian Automotive Inc (NASDAQ: RIVN).

Rivian’s Q2 results in early August showed a mixed picture.

Revenue slightly topped expectations, but net losses came in wider than forecast despite improving gross margins. The company still holds a healthy cash position, but with R2 production slated for 2026, fresh capital raises could be required.

What’s driving attention right now is the record short interest. As of mid-August, more than 20% of Rivian’s float is sold short, the highest level on record.

With shares already up 29% since August 6, momentum is pushing toward the critical $17 breakout level, which also marks the 52-week high.

Beyond the trade, Rivian is building out a full-stack EV ecosystem:

• Consumer lineup includes the R1T pickup and R1S SUV.
• Commercial platform powers its Amazon delivery van partnership.
• Software + services include FleetOS fleet management, vehicle servicing, and the Rivian Adventure Network of DC fast chargers.

More insights on RIVN’s future direction.

Why I Like It

Rivian remains one of the most polarizing EV plays.

Bears point to ongoing losses and production risk, while bulls see a capitalized company with marquee partners and potential for a short squeeze if momentum continues.

Trade Potential:

• Bullish Scenario: A breakout above $17 could push the stock toward $20.
• Bearish Scenario: Failure to hold above $14 risks a retracement toward the $12–$11 zone, especially if capital-raising headlines resurface.
  

With record short interest and a technical breakout zone just overhead, RIVN is a battleground stock to keep on the radar.

HWH International Inc (NASDAQ: HWH) — The Low-Float Penny Stock Runner

My third Robinhood penny stock pick is HWH International Inc (NASDAQ: HWH).

On Tuesday, September 2, HWH delivered one of the wildest moves of the month.

It spiked 430%* intraday as part of a massive low-float short squeeze.

Read updates from the first day of the spike.

The stock traded an incredible 323 million shares on day one, despite having a reported float of just 1.4 million shares on StocksToTrade.

That kind of imbalance creates the conditions for extreme volatility. And potentially more upside as shorts remain trapped.

Since the initial surge, HWH has been consolidating above $4, holding key support while digesting the move.

The breakout level is clear: Tuesday’s high at $7.77. A reclaim of that level could ignite another explosive leg higher.

While the company operates in the food and beverage sector with cafés, an online marketplace, and wellness services in Singapore and South Korea, the fundamentals don’t matter much here. 

What matters is supply and demand. And right now, this is one of the most volatile setups in the market.

Why I Like It

Low-float runners like HWH thrive in the current 2025 trading environment, where speculative momentum and aggressive short-selling collide.

With this much volume and attention, it’s a textbook squeeze candidate.

Trade Potential:

• Bullish Scenario: Breakout over $7.77 could fuel another squeeze toward double digits.
• Bearish Scenario: A breakdown under $4 would show fading momentum, with risk of a retrace toward earlier levels.
  
  

HWH is the definition of a penny stock supernova. Tiny float, massive volume, and a clear breakout line in play.

Intel Corp (NASDAQ: INTC) — The Trump Administration Stake Chip Stock

My fourth Robinhood penny stock pick is Intel Corp (NASDAQ: INTC).

INTC just scored a game-changing catalyst.

The Trump administration has taken the unusual step of making a direct $8.9 billion equity investment in Intel, grabbing a 9.9% ownership stake.

That makes this move not only bullish, but historic.

Washington is backing Intel as the company builds out over $100 billion in domestic chip fabrication facilities, a push to secure U.S. leadership in advanced semiconductor production.

The funding ties back to CHIPS Act allocations and the Secure Enclave program, but unlike prior support packages, this deal gives the government actual stock. Not a handout.

The U.S. locked in shares at $20.47 apiece along with warrants that could increase its position if Intel’s foundry business shifts.

The stock has already surged 39% in August, consolidating around $25. A decisive move above $26.50 could flip INTC into breakout mode, with institutions chasing momentum now that the U.S. itself is a stakeholder.

Why I Like It

This is more than a chart setup. It’s a national security play.

When government policy and price action line up, the upside can be powerful.

Trade Potential:

• Bullish Scenario: A breakout through $26.50 on strong volume could extend toward $30+, with AI and defense-related headlines acting as fuel.
• Bearish Scenario: A drop under $23 would weaken the setup, opening the door for a pullback toward $20 if broader markets falter.
  
  

Intel now sits at the intersection of politics, defense, and AI. That’s a rare convergence with real market-moving power.

Richtech Robotics Inc (NASDAQ: RR) — The AI-Driven Retail Automation Stock

My fifth Robinhood penny stock pick is Richtech Robotics Inc (NASDAQ: RR).

Richtech Robotics just secured a major validation point.

On August 21, the company signed a multi-year master services agreement with a leading global retailer.

While the client hasn’t been publicly named, the terms signal meaningful upside.

The contract includes a two-year base commitment that auto-renews annually unless terminated, positioning Richtech as a potential long-term automation partner for one of the largest retail ecosystems worldwide.

Shares surged 110%* in August, topping out at $3.80 before retracing. That zone now stands as the pivotal breakout level heading into the next trading cycle.

Read more about the recent move here.

 

Richtech’s portfolio blends AI-driven robotics with real-world deployment.

From Matradee robotic servers to DUST-E autonomous cleaners and the Titan logistics platform, its solutions are already operating in restaurants, hospitals, casinos, and beyond.

Why I Like It

This isn’t just a concept company — Richtech is executing. Now, with a foothold inside major retail infrastructure, it has the credibility to attract much broader attention.

Trade Potential:

• Bullish Scenario: A move back over $3.80 with heavy volume could kick off another strong leg higher.
• Bearish Scenario: Failure to reclaim $3 risks a fade toward $2 support, a key level from early 2025.
  
  

With AI and robotics adoption accelerating, this retailer partnership could transform RR from niche spec play into a legitimate growth story.

SoundHound AI, Inc (NASDAQ: SOUN) — The Post-Spike AI Voice Stock

My sixth Robinhood penny stock pick is SoundHound AI, Inc (NASDAQ: SOUN).

SoundHound has been one of the most explosive names in the AI space.

And after another sharp earnings-driven pop, it’s back on breakout watch.

SoundHound has built a deep tech stack powering conversational AI across industries. From voice-enabled cars and TVs to restaurant kiosks and customer service platforms.

Their flagship tools include Houndify, Smart Answering, and SoundHound Chat AI, giving brands powerful voice-first solutions that actually work in the real world.

Following its viral rise during the early ChatGPT surge in 2023, SOUN posted multiple triple-digit runs, including a 400%* spike in 2024 that led to new all-time highs.

Now in 2025, it’s already rallied 130%* YTD, fueled by strong earnings and bullish revenue guidance tied to the company’s growing Vision AI platform.

But here’s where it gets really interesting …

Despite the rally, SOUN is still 32.5% off its highs. Most see that as a warning, I see it as upside potential.

More information: Should you worry about a SOUN crash?

Why I Like It

Massive short interest (nearly 1/3 of the float), surging call volume, and rising institutional attention make SOUN a sleeper setup for a potential short squeeze.

And the short squeezes in this 2025 market are intense.

Trade Potential:

• Bullish Scenario: A breakout above $17 could send this flying toward $24 highs from December — especially if analysts upgrade or retail volume pours in.
• Bearish Scenario: Watch $12. as a short-term support line. Below that, $10 becomes the next key level.

This is a classic post-spike consolidation with all the ingredients for another move: Smart tech, proven volatility, and now, a fundamental boost to agitate shorts.

Opendoor Technologies Inc. (NASDAQ: OPEN) — The Meme Stock Grinder

My seventh Robinhood penny stock pick is Opendoor Technologies Inc. (NASDAQ: OPEN).

Opendoor has become one of the most volatile names of 2025, spiking an eye-popping 1,200%* since early July in a move that’s driven almost entirely by meme-stock speculation.

The latest wave of momentum carried shares to new 52-week highs on September 5, fueled by retail traders, heavy social media buzz, and backing from high-profile investors.

Read more about OPEN’s price action this month.

Crypto influencer Anthony Pompliano disclosed a large position in August, while hedge fund manager Eric Jackson announced his intent to join the board and push for leadership changes. 

These are catalysts that further energized the rally.

Fundamentally, the company has shifted toward an agent-led model that boosted conversions and engagement, while rolling out new tools like the Key Agent iOS app and Cash Plus hybrid product.

Still, OPEN remains a sentiment-driven trade, where crowd psychology and meme momentum matter far more than quarterly results.

Why I Like It

This stock has proven its ability to deliver parabolic runs followed by sharp pullbacks. It’s classic meme behavior.

With the short-term trend intact and volume still heavy, it’s a grinder that traders can’t ignore.

Trade Potential:

• Bullish Scenario: A clean breakout over recent highs could extend the squeeze toward $10 and beyond.
• Bearish Scenario: A retrace under $5 would show fading momentum and could set up a move back toward prior consolidation levels.
  
  

OPEN is a high-risk, high-reward meme favorite.

One of the purest examples of speculative mania still alive in 2025.

 

*Past performance does not indicate future results

Trading on Robinhood

Robinhood is a popular platform for trading penny stocks because it offers commission-free trades. However, it’s essential to understand that Robinhood has limitations, like the unavailability of certain stocks and limited research tools. In my courses, I often discuss the pros and cons of various trading platforms, including Robinhood.

Robinhood Penny Stocks Market

Robinhood does offer a range of penny stocks, but they’re limited compared to other platforms. The app is user-friendly, making it a popular choice for beginners. However, I always recommend that my students diversify their trading platforms to access a broader range of stocks.

If you’re looking for a beginner-friendly alternative, Webull offers a user-friendly platform that’s been compared to Robinhood. Known for its commission-free trades and comprehensive analytical tools, Webull can be an excellent starting point for new investors. Its intuitive interface makes it easier to manage and execute trades, while real-time market data helps in making informed decisions. However, due diligence remains key as penny stocks are notoriously volatile. For more details on how to trade penny stocks on Webull, check out my Webull penny stocks guide.

What Is a Good Penny Stock To Buy on Robinhood?

There’s no one-size-fits-all answer to this question. A good penny stock has strong fundamentals, high trading volume, and a positive news flow. I’ve shared specific recommendations in my newsletter, focusing on stocks with high growth potential.

What To Consider When Trading Penny Stocks

Penny stocks, often priced under $5 per share, represent small companies with high growth potential but also come with significant risks. These stocks can make substantial intraday moves, sometimes influenced more by hype than fundamentals. This market segment requires a solid trading strategy and a keen understanding of market dynamics to navigate effectively. For an in-depth look into the world of penny stocks, check out my guide on How to Find and Trade Penny Stocks.

When trading penny stocks, several factors need to be considered:

Price Action

Price action refers to the movement of a stock’s price and is crucial for predicting future price movements.

Remember: the trend is your friend. Understanding price action can help you identify profitable trends.

Understanding market trends goes beyond just looking at the stocks that are hot on Robinhood. The energy sector, particularly oil, often has penny stocks that show significant volatility. These oil penny stocks can be a goldmine for traders who understand the market trends in the energy sector. But remember, these stocks come with their own set of risks and should be traded carefully. If you’re interested in exploring this further, here’s a guide on oil penny stocks.

Unusual Volume

Unusual trading volume indicates strong investor interest and can be a sign of an impending price move. In my trading career, I’ve found that high volume often precedes significant price action.

Real News

Always look for stocks that have a strong news flow. Real, impactful news can be a significant price driver. I teach my students how to differentiate between impactful news and noise.

Scam Possibilities

Be cautious of scams and pump-and-dump schemes. These are prevalent in the world of penny stocks. I’ve seen traders lose their entire investment by falling for these scams.

Robinhood Stocks Under $5

The appeal of hot sector stocks on platforms like Robinhood, especially those classified as penny stocks, is compelling for a growing number of traders. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to trade these stocks with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of hot sectors, underscores the importance of a meticulous trading plan. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Robinhood hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies making headlines in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

Types of Penny Stocks on Robinhood

Robinhood is a retail-focused brokerage. That means it only allows clients to trade on major exchanges such as the NYSE and the Nasdaq.

There are a ton of stocks below $5 on these exchanges. The problem is, you’re only getting part of the pie.

The OTC markets and pink sheets also offer a huge range of volatile penny stocks … But you’ll need a different brokerage account to trade them. Robinhood won’t cut it.

For those interested in exploring penny stocks on other platforms, I have a whole series of articles on the topic! Learn more about using E-Trade for day trading to expand your trading horizons and discover how different platforms offer unique features.

Check out this post for the lowdown on how to find the best brokerage for you.

How to Find Penny Stocks on Robinhood 

Don’t follow my stock picks blindly. You’ve gotta become self-sufficient. Sure, you can find penny stocks on Robinhood’s mobile app… 

But I recommend creating your watchlists from your laptop — it’s a lot easier. Use a screener to search for stocks below $5. You’ll probably want to find some with volume too.

But it’s impossible for one person to watch every penny stock on Robinhood. So either grab a couple of friends to help you stare at hundreds of stocks … or choose a few that show good potential.

Creating a well-researched watchlist is the key to successful penny stock trading. Compiling a list of active penny stocks can help traders identify potential opportunities based on trading volume, recent news, and market trends. Utilizing reliable resources to track these stocks can aid in making timely and informed trading decisions. Regularly updating your watchlist ensures you are always aware of new opportunities in the market. If you want an example, check out my top penny stock watchlist!

Reddit is a popular choice for researching trading trends and connecting with other traders. If you’re looking to broaden your knowledge and explore other resources, read about penny stocks on Reddit to see how social media influences trading trends.

How to Choose Penny Stocks on Robinhood

Choosing penny stocks to trade requires a number of well-planned steps. Doesn’t matter which broker you use.

It’s all about finding hyped-up stocks. Then you ride the momentum and jump off before the move crashes. That can make it sound easy. It’s not. It takes years of education and planning to learn how to ride the momentum in this niche.

But here’s a quick overview…

First, look at stocks with hype. Maybe there’s a news catalyst that day. It could be trending on social media, or maybe it’s just a current hot stock.

Next, make sure that the stock’s daily trading volume is high enough to allow you to get in and out easily. Remember to manage risk.

It’s also important to check the price action on the stock chart. Reading the chart can help you pick a perfect entry position. It can also show good places to set your stop loss and help you understand what the stock’s next move might be.

Chart reading doesn’t have to be complicated. In fact, many seasoned traders look for clean and simple chart patterns.

Keeping up with news, watching the charts, and analyzing trading volume can all be done on a number of different apps … But if you want to get serious about your trading, there’s a much more effective way to do all of these things… 

Get a 14-day trial of StocksToTrade for just $7 for access to one of the most powerful stock trading tools on the planet. 

How to Trade Penny Stocks on Robinhood

If you’re gonna trade penny stocks on Robinhood — or anywhere else — you better know the restrictions. 

Every platform has its own set of advantages and disadvantages. If you’re curious about how other platforms handle penny stocks, TD Ameritrade is another popular choice for day trading — especially after its merger with mega-broker Charles Schwab. Enhance your trading strategy by learning about TD Ameritrade for day trading, and find the approach that best suits your needs.

Pattern Day Trading Rule

You have to keep the pattern day trading (PDT) rule in mind. This rule isn’t specific to Robinhood. If you have a small account, it can affect your trading.

The rule limits traders to no more than three day trades within a rolling five-day trading period. That is unless you have $25K or more in your trading account.

It can seem inconvenient — especially for new and excited traders — but it’s actually meant to protect you. Most traders lose money. The PDT rule tries to stop newbies from overtrading.

Try to see it as a good thing. It’ll force you to only focus on the best trades. That’s the best study tool there is.

Robinhood Day Trading Limit

The PDT rule can be a big problem for some traders. But again, I encourage you to see it as a good thing. No, you don’t have to listen to me…

Just like when I said that I didn’t think Robinhood had the best day trading software around. You can use it if it works for you. But understand that different brokers can work better for different people.

Don’t limit your options by choosing one just because it’s easy.

This is important, so pay attention. Do your research. Only you can decide which broker and trading platform are right for you.

Decide whether you’ll trade with a cash account or use margin. Margin is automatic on some Robinhood accounts. That can be risky. Read more about margin here.

You also need to figure out if you want access to extended-hours trading. That can also come with risk. I don’t recommend that for new traders.

What’s key is access to charts, watchlists, stock research, Level 2 data, and indicators. You can get all that and more with StocksToTrade. Plus you can trade right from the platform with our broker integration — and you can add on what’s arguably the trading chat room. 

When you start trading you have a lot of decisions to make. So take your time. Make a detailed list of what matters to you, then find the right broker and trading platform.

Trading Fees on Robinhood

Robinhood offers commission-free trades, but it’s essential to understand that “free” doesn’t mean there are no costs involved. The platform makes money from order flow, which can impact the execution price of your trades. Always consider the full range of fees and how they can affect your profitability.

Frequently Asked Questions About Robinhood Penny Stocks

Can You Buy Stocks Under $1 on Robinhood?

Yes, you can. Robinhood opens the door to stocks under $1, making it accessible for investors looking for a low entry point. From companies in technology to artificial intelligence, the options are vast. But remember, cheap doesn’t always mean value. Research is key.

Why Is Robinhood so cheap?

Robinhood’s mission is to democratize finance for everyone. They offer commission-free trading on stocks, which cuts the costs for the average investor. Deals with banks and financial institutions also allow them to keep deposit and account fees low. It’s not just about being cheap; it’s about making investment accessible.

Does Robinhood Really Give You a Free Stock?

As of now, yes, traders get a free stock when opening a Robinhood account. To me, it seems like another way the broker tries to entice users. But do your research. Check the terms and conditions, as they can change at any time.

Can You Day Trade Penny Stocks on Robinhood?

Day trading on Robinhood is like pulling onto the highway with two flat tires. You can do it, and it’ll work, but it won’t be pretty. 

Serious traders tend to use more robust software. Research different brokerages and software to find what might work best for you.