10 Top AI Penny Stocks To Watch for November 2024

Artificial intelligence (AI) penny stocks trade below $5, and are known for their high risk and potential high reward. These stocks generally belong to smaller companies at the forefront of integrating AI into diverse products and services. For traders, these stocks present a chance to take advantage of the hottest sector right now. However, the inherent volatility and the nascent stage of these companies necessitate thorough analysis and a sharp awareness of market trends.

10 AI Stocks To Watch

My top AI stock picks for November — rated on chart pattern, price action history, and news — include the following:

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

Trading any of these stocks should be approached with a clear strategy 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 AI stocks!

10 Best AI Stocks for November 2024

My top AI penny stock picks are:

• NASDAQ: BTOC — Armlogi Holding Corp — The AI Warehouse Management Penny Stock
• NASDAQ: UPWK — Upwork Inc — The Freelancer Marketplace Stock Building an AI Engine
• NASDAQ: SOUN — SoundHound AI Inc — The AI Penny Stock That Jack Traded
• NASDAQ: PHUN — Phunware Inc — The Donald Trump Pump AI Penny Stock
• NASDAQ: SERV — Serve Robotics Inc — The Robotics Stock Partnering With Uber Eats
• NASDAQ: RR — Richtech Robotics Inc — The Other NVDA-Partnered Robotics Penny Stock
• NASDAQ: VS — Versus Systems Inc — The B2B Software Stock With Partnership News
• NASDAQ: POET — POET Technologies Inc. — The Optical AI Stock Partnering With Mitsubishi
• NASDAQ: APLD — Applied Digital Corp — The Data Center Stock With the NVDA Deal
• NASDAQ: LASE — Laser Photonics Corporation — The AI-Enabled Laser Penny Stock

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 here. 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!

Here’s some background info on the AI sector:

• What is the most promising AI stock?

A sector leader like NVIDIA Corp (NASDAQ: NVDA) is the best bet for the most promising AI stock. But remember, we’re traders, not investors. So the stocks on this list are ones we’re watching for short-term moves, not predictions of which will lead stock exchanges in 2030.

• What are the top 3 AI stocks to buy now?

My top 3 AI stocks to buy now (as long as their price action is strong) are Richtech Robotics Inc (NASDAQ: RR), Armlogi Holding Corp (NASDAQ: BTOC), and Applied Digital Corp (NASDAQ: APLD).

• Which company is most advanced in AI?

NVIDIA is the most advanced publicly traded company in AI, that’s why it’s the sector leader. But other leading tech stocks like Apple, Microsoft, Google, and Facebook are all safe bets to pull ahead at some point.

• Which Artificial Intelligence stocks have a “Strong Buy” analyst rating?

Analysts tend to love these tech leaders — NVIDIA, Microsoft, Google, and Facebook. Most analysts have rated all of these stocks as “strong buys.”

Let’s get to the picks …

1. Armlogi Holding Corp (NASDAQ: BTOC) — The AI Warehouse Management Penny Stock

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My first AI penny stock pick is Armlogi Holding Corp (NASDAQ: BTOC).

On October 22 during premarket, this company announced an enhancement of its established Warehouse Management System with the addition of artificial intelligence.

StocksToTrade shows that the float is only 6.1 million shares. That’s below our goal of 10 million shares or fewer. The low supply of shares helps the stock spike higher when demand increases.

You’ll notice that some of the other stocks on this watchlist have a low float … We’re most interested in the stocks that satisfy our criteria for spikeability.

Due to the low float and the bullish news, BTOC spiked 60% after the news announcement.

I snagged a quick profit in the afternoon:

Why I Like It

It’s still on my watchlist because the stock is trading near the highs from the spike.

The price fell on October 24 but rallied back to $8. That’s a sign the price could push higher.

I’m just waiting for the chart to match my pattern again. If it never follows my framework, I won’t make a trade.

Use AI to follow my trade patterns on the hottest stocks.

There’s a science to this, I’m not trading at random …

2. Upwork Inc (NASDAQ: UPWK) — The Freelancer Marketplace Stock Building an AI Engine

My second AI penny stock pick is Upwork Inc (NASDAQ: UPWK).

On October 16 we learned that UPWK would begin utilizing AI to help connect employers and workers across the globe. The company’s new AI engine is called Uma.

But the stock didn’t react much to the news …

The actual spike came on October 23 after UPWK announced a more streamlined and efficient business model to boost profitable growth.

I saw the AI announcement. Then the price started to spike with bullish earnings guidance and when the chart matched my framework, I made two trades:

Why I Like It

The price only spiked 20%, but the price is still trading near the highs. On October 24 it showed strong consolidation between $12.50 and $13.

A stock that consolidates has a chance of spiking higher.

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3. SoundHound AI Inc (NASDAQ: SOUN) — The AI Penny Stock That Jack Traded

My third AI penny stock pick is SoundHound AI Inc (NASDAQ: SOUN).

In mid February we learned that NVIDIA Corporation (NASDAQ: NVDA) invested in this stock.

The price spiked 350%* over the next few days.

And ever since, SOUN has shown us periods of volatility that match my framework.

One of my most successful students, Jack Kellogg, traded this stock a few times. I posted a recent example of a trade that he made below:

Get Jack’s next trade alert!

Why I Like It

The chart shows a solid multi-day support level around $4.

And ever since the NVDA news, the stock has matched my trade patterns more than once. All we have to do is follow the price action and wait for the next setup.

Plus, NVDA pushed to new all-time highs in October … that bullish momentum could cause another spike from SOUN in the coming days and weeks.

4. Phunware Inc (NASDAQ: PHUN) — The Donald Trump Pump AI Penny Stock

My fourth AI penny stock pick is Phunware Inc (NASDAQ: PHUN).

The election in November is acting as a HUGE catalyst for the market.

We saw Trump Media & Technology Group Corp. (NASDAQ: DJT) rally 140%* in October. And DJT isn’t the only Trump stock that’s moving …

PHUN spiked during Trump’s former campaign, and the stock is showing us volatility again in October.

The price spiked 350%* alongside DJT’s rally.

Jack was all over this runner. You can see his trade below from October 24 …

Why I Like It

DJT and PHUN are both volatile stocks that are worth watching with regard to the election.

But PHUN has a lower share price and fewer shares in the float. So it’s a better trade from my perspective.

5. Serve Robotics Inc (NASDAQ: SERV) — The Robotics Stock Partnering With UberEats

My fifth AI penny stock pick is Serve Robotics Inc (NASDAQ: SERV).

This was another NVDA investment stock …

The market learned of NVDA’s position in mid-July. And SERV spiked 810%* over the next few days.

Why I Like It

The price fell after reaching highs on July 30. But, similar to the other NVDA-investment stock, SOUN, the chart continued to show us profitable volatility afterward.

I traded it in mid October for a profit when the chart spiked in premarket with news of an UberEats partnership.

Read my trade notes below:

The stock didn’t continue higher intraday, but the pre-market volatility shows us that the price can still spike.

I’m waiting for the next news catalyst.

Get Breaking News to ensure that you see the spike before it turns vertical!

6. Richtech Robotics Inc (NASDAQ: RR) — The NVDA-Partnered Robotics Penny Stock

My sixth AI penny stock pick is Richtech Robotics Inc (NASDAQ: RR).

Instead of an investment from NVDA, this catalyst is a business partnership.

In September, RR announced an AI beverage-service robot that utilizes NVDA computing technology.

I traded some of the momentum on September 23. You can see my notes below:

Why I Like It

Who doesn’t like an AI-powered beverage robot, lol??

Jokes aside, this is a serious former runner. The price spiked 330%* in August.

It spiked again in September …

There wasn’t much activity in October, but the chart did show consolidation above $0.60. That could act as a solid level for the stock to rally.

Wait for the next sign of bullish volatility.

7. Versus Systems Inc (NASDAQ: VS) — The B2B Software Stock With Partnership News

My seventh AI penny stock pick is Versus Systems Inc (NASDAQ: VS).

On October 16, VS announced two business agreements with ASPIS Cyber Technologies Inc.

1. ASPIS would invest $2.5 million in VS.
2. ASPIS can license VS technologies into cyber-security offerings.

The price spiked 730%* that day, and I snagged a nice profit.

Take a look at my trade notes below:

Why I Like It

StocksToTrade shows that the float is only 1.5 million shares.

And the stock is consolidating above the pre-spike level. We could see a sizable bounce from this runner any day!

8. POET Technologies Inc. (NASDAQ: POET) — The Optical AI Stock Partnering With Mitsubishi

My eighth AI penny stock pick is POET Technologies Inc. (NASDAQ: POET).

On September 19, POET announced a partnership with Mitsubishi Electric to develop AI imaging technology.

By September 24 the price had spiked 80%.

Why I Like It

The price has pushed higher since April. One stair step at a time.

It shows that the price can follow support and resistance levels while spiking upward. That’s a great sign of tradeability.

I missed the run in September. But I’m ready for the next surge!

9. Applied Digital Corp (NASDAQ: APLD) — The Data Center Stock With the NVDA Investment

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

This is the most recent NVDA investment stock.

We learned of NVDA’s position in early September, and by late October the price had spiked 190%*.

I was buying shares at $4.46 and the price ran to $9.48!

I sold at $4.69, lol. It was a decent trade though! Take a look at my notes below:

Why I Like It

Just like the other NVDA-investment stocks on this watchlist, the price is capable of showing us follow-up volatility.

Use my AI trading bot to build smart positions!

10. Laser Photonics Corporation (NASDAQ: LASE) — The AI-Enabled Laser Penny Stock

My tenth AI penny stock pick is Laser Photonics Corporation (NASDAQ: LASE).

LASE has had an incredible year!

The price spiked 1,800%* in 2024 … thus far.

And the volatility reached a new level of intensity these last few months.

Why I Like It

The chart follows my 7-step framework perfectly!

Right down to the panic dip-buy bounce on October 8. It’s a classic #5 – #6!

Take a look at the whole framework here.

This company uses AI to increase the efficiency and effectiveness of laser cleaning for metal surfaces before welding and other product construction.

Think about all of the precious metals used for microchips that need laser cleaning to improve their conductivity.

This is an essential business in the AI industry, and it’s using AI to increase its efficiency. It’s perfectly placed in the industry.

And I think it’s only a matter of time until we see another #5 – #6 bounce. Stay vigilant!

*Past performance does not indicate future results

What Is Artificial Intelligence?

Artificial intelligence is when a computer simulates human intelligence. Artificial intelligence technology seeks to create machines that can fill roles traditionally carried out by people.

There’s a wide range of things you can accomplish with AI. Recent artificial intelligence products include chatbots, self-driving cars, industrial robotic solutions, and smart assistants. While we might still be very far from truly smart robots like the Star Wars droids or the Transformers, we’re closer than we’ve ever been before.

What Are AI Penny Stocks?

AI penny stocks are shares of small artificial intelligence companies that trade at a low price, often under $5. These stocks are part of an industry that’s booming with potential, from machine learning to data analytics. Just because they’re cheap doesn’t mean they’re a sure bet. I’ve been trading and teaching for years, and I can tell you that these stocks can be as volatile as a shaken soda can.

The allure of AI penny stocks lies in their growth potential. Companies in this sector are often in the early stages of development, focusing on applications like chatbots, security, and advertising. Investors are drawn to the high-reward prospects, but it’s crucial to understand the risks involved. You’re not just investing money; you’re investing in a business’s potential to revolutionize industries.

Apply for my Trading Challenge today and learn how to trade artificial intelligence stocks!

AI isn’t the only hot sector out there. Another sector that’s making headlines is green energy. Check out these 7 green energy penny stocks that are worth watching.

What Makes AI Penny Stocks Unique?

AI penny stocks are distinct due to their involvement in cutting-edge technology and the small-cap market. These companies, often in the early stages of development, harness artificial intelligence to drive innovation in various sectors, from automation to data analysis. The market size for AI-driven companies is rapidly expanding, making these stocks particularly volatile. This volatility can lead to high returns but also poses significant risks. Understanding these characteristics is crucial for traders looking to capitalize on AI’s growth potential.

Critical factors that differentiate AI penny stocks from other tech stocks and traditional penny stocks include:

• Technology adoption: AI companies are at the forefront of technological innovation, often developing unique applications of AI.
• Regulatory environment: AI technology is subject to evolving regulations, which can impact company operations and stock performance.
• Investment risks: High volatility and the nascent stage of many AI companies mean potential for significant gains or losses.
• Market position: Many AI penny stocks are small-cap companies with limited market presence compared to established tech giants.
• Innovation pace: The rapid pace of AI development can lead to swift changes in company fortunes, impacting stock prices dramatically.

AI stocks often experience significant price fluctuations driven by technological advancements and market adoption rates. Expanding your portfolio with tech penny stocks can further diversify your investment and capitalize on the tech sector’s growth. To explore promising tech penny stocks and gain insights into their market potential, check out this comprehensive list of tech penny stocks.

What to Look for in an Artificial Intelligence Penny Stock

Like with any stock, the best way to prepare for artificial intelligence penny stock rallies is to build a watchlist. A good watchlist will build up your knowledge about specific stocks, as well as keep you prepared for the opportunities that may come.

Don’t take your penny stock lists from other people’s picks — not even mine. Other traders have different priorities, goals, and risk appetites. Here’s what to look for in a penny stock when building your watchlist:

Exhibits a Tradeable Pattern on its Stock Chart

Start with the chart.

The stocks that make my watchlists have a record of tradeable chart patterns. Check out the charts in the previous section. Penny stocks follow a boom-and-bust cycle. Since they’re mostly stocks in worthless companies that are temporarily inflated by lying promoters and gullible newbies, their patterns often repeat.

If you want to get the best read on their charts, you need a powerful trading platform on your side like StocksToTrade.

I helped design StocksToTrade. So it makes sense that it has all the features traders like me want in a trading platform.

No more navigating clunky software or hopping between multiple windows to check on the news — StocksToTrade has everything you need!

StocksToTrade has changed the way I trade. Sign up for a 14-day trial today and see how it can change your trading — it’s only $7!

Is a Low-Float Stock

Any stock with less than 10 million shares publicly available for trading is considered a low-float stock. A smaller number of shares in play means that volume spikes can really move a stock’s price.

Exhibits an Unusual Trading Volume

Stocks trading at unusual volumes are more prone to price swings, which increase your chances of safely trading “the meat of the move.” Penny stock volume is important for another reason — high volume stocks are more liquid and easier to sell.

Is a Former Runner

A penny stock that’s run in the past has a better chance of running again in the future. Why?

• It’s shown that it can run in reaction to the catalyst that made it run the first time
• The market has a memory
• Promoters also have a memory, and they’ll keep on pumping a hot stock until the worthless company it’s associated with goes out of business

Gets Frequent Media Attention

Breaking news stories and press releases about new technology solutions often lead to major price swings in tech penny stocks. Like we’ve already established, AI is a sector that gets a lot of news coverage.

Where to Buy AI Penny Stocks

You can buy AI penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq, as well as in the over-the-counter (OTC) markets. Most people trade penny stocks through broker websites and apps like Robinhood, Chase, and Wealthsimple Trade.

NYSE/Nasdaq Penny Stocks

You can find AI penny stocks among the tech giants listed on major exchanges like NYSE and Nasdaq. Listed stocks are more regulated than OTC stocks, and are generally perceived as more stable companies.

Most of the hot AI stocks are found on the Nasdaq. These stocks are generally more regulated and can offer a different kind of stability in the volatile world of penny stocks. Learn more about penny stocks on Nasdaq here.

OTC Penny Stocks

OTC or unlisted penny stocks fall into one of three tiers:

• Pink sheet
• OTCQB
• OTCQX

Each OTC tier has different regulations and requirements. Pink sheets have little in the way of regulation, while OTCQX is more strictly regulated. That isn’t to say I won’t trade a pink sheet stock — I just won’t trust it.

Some AI stocks with the biggest potential for quick gains are found on the pink sheets. Of these, stocks under 10 cents are a distinct breed. These ultra-cheap stocks can be even more volatile, offering both higher risks and potentially higher rewards. If you’re looking to add some spice to your trading strategy, consider these options. Here’s a guide to penny stocks under 10 cents.

The Best Place to Buy Tech Penny Stocks

Are listed stocks better than unlisted, or vice versa? It depends on your risk appetite.

I trade both listed and unlisted stocks. I don’t see why I should limit myself.

How to Trade AI Penny Stocks

To start trading AI penny stocks, follow these guidelines:

1. Set up a trading account: Choose a broker that offers access to penny stocks and supports trading automation.
2. Choose the right trading platform: Look for platforms with robust research tools, low-cost trading options, and good user reviews.
3. Understand trading fees: Be aware of all costs involved, including commission, spreads, and potential hidden fees.

Trading AI penny stocks requires a strategic approach. Technical analysis can help identify price patterns and trading opportunities. Fundamental analysis is essential to understand a company’s financial health and potential for growth. Staying informed about AI industry trends is crucial, as new developments can significantly impact stock prices. Drawing on years of trading experience, I’ve seen how crucial it is to stay updated with publications and reports on AI advancements to make informed trading decisions.

AI Stocks Under $5

Here are some of my top watches for AI penny stocks priced under $5:

When I’m building my watchlist for AI penny stocks under $5, I look at the following factors. These factors don’t all matter when you’re trading penny stocks — but the perception of them does matter.

• Growth potential: The company’s AI projects and innovations. Companies focusing on emerging AI technologies and automation can offer significant upside.
• Financial health: The company’s balance sheet, revenue trends, and cash flow. A stable financial base is crucial for sustaining growth and weathering market volatility.
• Market position: The company’s standing in the AI sector. Strong market positioning can indicate future success.
• Management team: The company’s leadership. Research the backgrounds and track records of the key executives.
• Industry trends: Broader AI industry trends. These are the biggest catalysts in penny stock land.

Some of the hottest AI penny stocks are in the biotech sector. Biotech is a great trading sector due to the potential for huge catalysts driven by successful clinical trials or FDA approvals. Like AI, trading biotech stocks requires staying informed about the latest developments in the industry. To identify high-potential biotech penny stocks, check out my monthly biotech penny stock watchlist.

AI Penny Stocks Under $10

Here are some AI stocks priced under $10:

• Gaxos.AI Inc (NASDAQ: GXAI)
• GSI Technology, Inc (NASDAQ: GSIT)
• AXT Inc (NASDAQ: AXTI)
• Airship AI Holdings Inc (NASDAQ: AISP)
• SoundHound AI Inc (NASDAQ: SOUN)

Keeping an eye on companies involved in projects with buzz — sort of like Elon Musk’s Project Omega that we’ve been hearing about for years — can tip you off to future movements. Don’t give this hype a big position in your trading portfolios, but keep it on watch.

A robust penny stock watchlist should include a mix of stocks from various sectors to mitigate risks and capture opportunities across different markets. I don’t only watch AI stocks — I focus on any stock with strong growth potential. Regularly updating your watchlist and monitoring stock performance are crucial steps in staying ahead of the game. To see how I do it, check out my weekly penny stock watchlist.

Key Takeaways

Trading in AI penny stocks presents potential for profit, yet it’s crucial to keep an awareness of the risks involved. As traders, our approach isn’t about blindly pouring money into AI stocks. Instead, we focus on trading based on discernible patterns and deep market insights.

In trading, the small gains build over time. Don’t get swept away by the AI buzz; stay grounded in hard facts and observable market patterns. That’s the essence of trading AI penny stocks.

Key Considerations:

• A lot of penny stocks are shady. Risk in AI penny stocks can be heightened due to limited company information and unsavory promotion.
• There’s a possibility for big gains. With the AI sector’s potential for rapid advancement, these stocks can go supernova at any time.
• The sector is young. AI penny stocks are impacted by technological innovations and developments, which can dramatically shift their market trajectory and valuation.

Artificial intelligence is one of the hottest sectors in trading, thanks to it being one of the hottest sectors in the popular imagination. The frequency of breaking news means there are bound to be opportunities for good trades.

Just because there are opportunities for trades doesn’t mean you will necessarily catch them. You have to be prepared. That means keeping a good watchlist, watching the market, and studying harder than all of the other traders trying to come out on top.

What are the AI penny stocks on YOUR watchlist? Let me know in the comments!

Frequently Asked Questions

How Should You Value AI Companies?

Valuing AI companies is a complex task that involves a deep dive into their financials, growth prospects, and market demand. Traditional metrics like earnings and revenue are important, but you also need to consider factors like data acquisition capabilities and the quality of their machine learning algorithms. From my experience, understanding the nuances of an AI company’s value can make or break your portfolio.

What AI Company Is Elon Musk Investing In?

Elon Musk recently launched xAI, billed as a ChatGPT alternative. Musk was a founding board member and investor in OpenAI, the company behind ChatGPT. He stepped away due to potential conflicts with Tesla’s AI development for self-driving cars.

How Do You Invest in the AI Industry?

Investing in the AI industry requires a well-thought-out strategy. You need to diversify your investments across various sectors like analytics, machine learning, and data security. You can use a mix of financial instruments like securities, equities, and even some options to balance out the risks and potential rewards.

What Information Can I Find in AI Articles?

By reading widely, you’ll find valuable information and insights related to artificial intelligence businesses and their customers. They often have content that contains various links to research and services, aimed to help you better understand this market.

What Determines the Market Cap of AI Penny Stocks?

The market cap of AI penny stocks is determined by a variety of factors including their momentum and results in the market. Monitoring these can give you an idea of their potential for profit.

How Can Services and Research Aid My Investment?

Services provide tools and platforms that can assist you in making informed decisions. The research, on the other hand, provides deeper insights into market trends, business models, and potential for profit, for stocks ranging from powerhouses like Tesla (TSLA), NVIDIA (NVDA), and Microsoft (MSFT) to penny stocks like AMST, POAI, and PBTS.

What Fundamentals Should I Look for in AI Penny Stocks?

Focus on low-cost, small-cap companies that show potential for high growth and innovation. Look for new ideas and technologies these companies are developing, and consider opinions and analyses from experts in the field to get a comprehensive understanding of the market. While AI penny stocks are primarily tech-focused, fluctuations in unrelated sectors, like crude oil, can still impact overall market sentiment and trading conditions.

*Past performance does not indicate future results