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.
Table of Contents
- 1 10 AI and Quantum Computing Stocks To Watch
- 2 10 Best AI and Quantum Computing Stocks for June 2025
- 2.1 MicroCloud Hologram Inc. (NASDAQ: HOLO) — The Quantum Pump Meme Stock
- 2.2 Box Inc. (NYSE: BOX) — The Earnings Winner Cloud Computing Stock
- 2.3 Signing Day Sports Inc. (AMEX: SGN) — The BlockchAIn Merger Penny Stock
- 2.4 Siyata Mobile Inc. (NASDAQ: SYTA) — The AI User Bump Mobile Gaming Stock
- 2.5 Oklo Inc. (NYSE: OKLO) — The Trump Bump Nuclear Sector Leader (With AI Ties)
- 2.6 Quantum Computing Inc. (NASDAQ: QUBT) — The NASA Contract Quantum Computing Stock
- 2.7 Rigetti Computing Inc. (NASDAQ: RGTI) — The Quantum Sector Leader I’m Watching for the Next Run
- 2.8 D-Wave Quantum Inc. (NYSE: QBTS) — The Quantum Computing Stock Under Investigation
- 2.9 SEALSQ Corp. (NASDAQ: LAES) — The Semiconductor and Quantum Computing Penny Stock
- 2.10 IonQ Inc. (NYSE: IONQ) — The Quantum Computing Stock With the Disappointing Earnings Win
- 3 Can I Buy DeepSeek Stock?
- 4 What Is Artificial Intelligence?
- 5 What Are AI Penny Stocks?
- 6 What Makes AI Penny Stocks Unique?
- 7 What to Look for in an Artificial Intelligence Penny Stock
- 8 Where to Buy AI Penny Stocks
- 9 How to Trade AI Penny Stocks
- 10 AI Stocks Under $5
- 11 AI Penny Stocks Under $10
- 12 Key Takeaways
- 13 Frequently Asked Questions
- 13.1 How Should You Value AI Companies?
- 13.2 What AI Company Is Elon Musk Investing In?
- 13.3 How Do You Invest in the AI Industry?
- 13.4 What Information Can I Find in AI Articles?
- 13.5 What Determines the Market Cap of AI Penny Stocks?
- 13.6 How Can Services and Research Aid My Investment?
- 13.7 What Fundamentals Should I Look for in AI Penny Stocks?
10 AI and Quantum Computing Stocks To Watch
My top AI and quantum computing stock picks for June — rated on chart pattern, price action history, and news — include the following:
Stock Ticker | Company | Performance (YTD) |
---|---|---|
NASDAQ: HOLO | MicroCloud Hologram Inc | |
NYSE: BOX | Box Inc | |
AMEX: SGN | Signing Day Sports Inc | |
NASDAQ: SYTA | Siyata Mobile Inc | |
NYSE: OKLO | Oklo Inc | |
NASDAQ: QUBT | Quantum Computing Inc | |
NASDAQ: RGTI | Rigetti Computing Inc | |
NYSE: QBTS | D-Wave Quantum Inc | |
NASDAQ: LAES | Sealsq Corp | |
NYSE: IONQ | IONQ Inc |
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 and quantum stocks!
10 Best AI and Quantum Computing Stocks for June 2025
My top AI and quantum computing penny stock picks are:
- NASDAQ: HOLO — MicroCloud Hologram Inc. — The Quantum Pump Meme Stock
- NYSE: BOX — Box Inc. — The Earnings Winner Cloud Computing Stock
- AMEX: SGN — Signing Day Sports Inc. — The BlockchAIn Merger Penny Stock
- NASDAQ: SYTA — Siyata Mobile Inc. — The AI User Bump Mobile Gaming Stock
- NYSE: OKLO — Oklo Inc. — The Trump Bump Nuclear Sector Leader (With AI Ties)
- NASDAQ: QUBT — Quantum Computing Inc — The NASA Contract Quantum Computing Stock
- NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing Sector Leader I’m Watching for the Next Run
- NYSE: QBTS — D-Wave Quantum Inc — The Quantum Computing Stock Under Investigation
- NASDAQ: LAES — Sealsq Corp — The Semiconductor and Quantum Computing Penny Stock
- NYSE: IONQ — IONQ Inc — The Quantum Computing Stock With the Disappointing Earnings Win
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.
How do I spot a high-potential setup?
XGPT is the AI tool my team and I have built to spot high-odds stock setups — faster, smarter, and more efficiently than any human can. You don’t have to be a math genius or some tech wizard. XGPT analyzes patterns, price action, and data the way my top students do… only it does it 1,000x faster.
Whether you like it or not, AI is part of modern trading. Other traders are already using it, shouldn’t you?
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 MicroCloud Hologram Inc. (NASDAQ: HOLO), Box Inc. (NYSE: BOX), and Oklo Inc (NYSE: OKLO).
- What are the top 3 quantum computing stocks to buy now?
My top 3 quantum computing stocks to buy now (as long as their price action is strong) are Rigetti Computing Inc (NASDAQ: RGTI), D-Wave Quantum Inc (NYSE: QBTS), and IONQ Inc (NYSE: IONQ).
- 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 …
MicroCloud Hologram Inc. (NASDAQ: HOLO) — The Quantum Pump Meme Stock
My first AI and quantum penny stock pick is MicroCloud Hologram Inc. (NASDAQ: HOLO).
This is a huge former runner in the market. The stock’s been spiking since 2023.
For example, in February 2024, the price spiked 6,400%* — one of the biggest moves of the year.
And after that spike, HOLO did what most supernovas do — it faded hard. But that’s normal in penny stock land. These are not long-term investments, they’re trading vehicles.
Since its latest move, HOLO has worked to stay listed on the Nasdaq. On April 21, the company held a reverse split, drastically lowering its float to just 4.8 million shares. When the supply of shares is low, it’s easier for price spikes to happen.
It follows the law of supply and demand.
Most recently, on May 22, HOLO announced a major step forward in its quantum-computing imaging technology. The stock spiked 110%* after the news.
And now they’re layering in AI — using DeepSeek AI models to create a new quantum tensor network neural network (QTNNN) that’s designed to simulate complex quantum systems while keeping resource consumption low. That’s if you believe the press releases.
Traders should only believe in the price action of this explosive stock.
Why I Like It
- Ultra-low float after the split = easy to spike.
- Big catalysts in hot sectors — AI + quantum computing.
- Former 6,000%+ runner — history of huge moves.
Patterns repeat in this niche. And HOLO’s setup looks primed for more volatility.
I’m watching for volume surges and potential breakout levels using StocksToTrade.
Box Inc. (NYSE: BOX) — The Earnings Winner Cloud Computing Stock
My second AI penny stock pick is Box Inc. (NYSE: BOX).
On May 27 during after hours, BOX reported bullish earnings. Revenue climbed 4% year-over-year to $276 million, and the company’s leadership emphasized how they’re integrating AI across their cloud content management platforms.
Even better, they raised their sales outlook for the rest of fiscal 2025, giving bulls another reason to push the stock to new highs.
After the announcement, BOX surged to fresh all-time highs.
This company is serious about AI — launching tools like AI Agents for deep search, data extraction, and workflow automation. The CEO said AI is “revolutionizing work and business” — and clearly the market liked that message.
Why I Like It
- 68% of Fortune 500 companies already use Box — a built-in user base.
- Strong push into AI applications.
- Bullish technicals with a multi-year breakout chart.
The share price is a little higher than the low-priced penny stocks I typically focus on. But whether you’re trading a $3 stock or a $30 stock, the setup matters more than the price.
Study all kinds of price action — because our patterns can show up anywhere.
More Breaking News
- Citius Oncology’s New Distribution Deal Boosts Stock Momentum
- CorMedix Announces $85M Stock Offering Amid Strategic Expansion Plans
- SoundHound AI Stock: Poised for Unseen Heights?
Signing Day Sports Inc. (AMEX: SGN) — The BlockchAIn Merger Penny Stock
My third AI penny stock pick is Signing Day Sports Inc. (AMEX: SGN).
SGN used to help high school athletes get recruited. Pretty niche — and not exactly a hot sector.
But in May, the company announced a massive pivot: it’s merging with One Blockchain LLC to form a publicly traded crypto mining and AI data hosting company.
This kind of pivot — a total business model flip — is typical for penny stocks. It might sound sketchy, but it gives traders something to speculate on.
After announcing the deal, SGN spiked 410%*.
BlockchAIn DI, the company SGN is merging with, already reported $26.8 million in revenue and $5.7 million in net income for 2024 — rare real numbers in this sector.
Why I Like It
- AI + crypto mining = two hot sectors in one stock.
- Profitable merger target.
- Huge float turnover during the spike.
And here’s the kicker — SGN is planning to commission a new 150MW AI computing facility in Texas by late 2026.
These pivot stories are tricky. Never believe the hype — just trade the price action.
Siyata Mobile Inc. (NASDAQ: SYTA) — The AI User Bump Mobile Gaming Stock
My fourth AI penny stock pick is Siyata Mobile Inc. (NASDAQ: SYTA).
SYTA was a sleeper stock — until May.
That’s when Core Gaming, a company that SYTA is merging with, announced it had racked up 300,000+ users for its new AI-powered Comic App within 24 hours of launch.
User growth that fast sets the market on fire.
SYTA spiked a jaw-dropping 810%* during a multi-day run.
And Core Gaming isn’t slowing down — they’re set to present at the Maxim Group’s 2025 Virtual Tech Conference, showcasing their AI-driven innovation across gaming, entertainment, and more.
Why I Like It
- Viral growth stories can fuel monster supernova runs.
- AI + gaming narratives are sticky with traders.
- Textbook supernova pattern — huge spike, potential for round two.
These kinds of setups come around often — if you’re prepared to recognize them.
We see multiple supernovas every month. Study the chart. Learn the catalyst. And get your mind locked in for the next explosive move.
I also have a full tutorial on how to trade these intense runners. Watch my video below:
Oklo Inc. (NYSE: OKLO) — The Trump Bump Nuclear Sector Leader (With AI Ties)
My fifth AI penny stock pick is Oklo Inc. (NYSE: OKLO).
Oklo’s a big name in the small modular reactor (SMR) space — and they’re pushing the envelope even further.
They reported better-than-expected Q1 earnings, reaffirmed guidance, and said they’re on track to launch their first commercial SMR by 2027. The stock ran more than 15% after earnings.
What’s even more interesting is the potential AI angle.
Sam Altman, CEO of OpenAI, stepped down from his role as Oklo’s chairman in late April — clearing the way for possible partnerships between OpenAI and Oklo to provide nuclear energy for data centers powering AI.
Given the insane energy demands of AI data centers, this could be a game-changer.
Why I Like It
- Nuclear energy is gaining bipartisan political support.
SMRs could revolutionize energy delivery — and AI needs a ton of power. - Potential OpenAI deal would be a huge validation.
Oklo is trading near all-time highs. A clean breakout could lead to explosive moves.
Quantum Computing Inc. (NASDAQ: QUBT) — The NASA Contract Quantum Computing Stock
My sixth AI and quantum penny stock pick is Quantum Computing Inc. (NASDAQ: QUBT).
This stock is one of the most volatile in the sector — and that’s saying something. QUBT spiked 1,800%* to end 2024 … a jaw-dropping run that rewarded prepared traders.
Since then, the price has cooled off, but it’s still up massively on the year. And it’s not dead yet — despite the short reports trying to kill it.
On April 30, QUBT announced a NASA contract worth up to $406,000 to support LIDAR data analysis — a big credibility boost for a small-cap tech company.
Even more importantly, the company will officially join the Russell 3000 Index on June 27. Institutional funds that track the index could be forced to buy, creating buying pressure leading up to and after the inclusion.
Why I Like It
- NASA validation — real government contract work adds credibility.
- Russell 3000 inclusion — could spark institutional demand.
- Wild volatility — former 1,800%* runner, patterns can repeat.
Be patient here. QUBT’s chart is messy, but former runners often offer second or even third waves if the news flow stays positive.
Rigetti Computing Inc. (NASDAQ: RGTI) — The Quantum Sector Leader I’m Watching for the Next Run
My seventh AI and quantum penny stock pick is Rigetti Computing Inc. (NASDAQ: RGTI).
RGTI has had a tough time lately, falling more than 13% after announcing an Open Market Sale Agreement with Jefferies to raise up to $350 million.
Dilution is never great news, and the stock reacted accordingly. But here’s the thing — the company still operates in one of the hottest sectors out there: quantum computing.
RGTI is building quantum processors and offering cloud quantum computing services — a space with massive long-term potential despite current challenges.
Why I Like It
- Massive volatility — big downswings often lead to sharp relief rallies.
- Quantum sector still a high-interest area — money flows where the stories are hot.
I’m watching for a technical bounce setup — and if the broader quantum sector heats up, RGTI could move fast.
D-Wave Quantum Inc. (NYSE: QBTS) — The Quantum Computing Stock Under Investigation
My eighth AI and quantum penny stock pick is D-Wave Quantum Inc. (NYSE: QBTS).
QBTS rallied 150%* in March, followed by a 115% gain in Q2 so far. That’s not bad for a company that’s under investigation for potential fraud — but in penny stock land, controversy is often a catalyst, not a deterrent.
Plus, the company is posting real revenue growth — Q1 sales rose 500% year-over-year to $15 million. That’s one of the fastest growth rates in the quantum sector.
The California State Teachers’ Retirement System (CalSTRS) even upped their stake earlier this year — a major pension fund sniffing around can add legitimacy to a micro-cap.
Check out the latest D-Wave news here!
Why I Like It
- Big revenue growth — 500% year-over-year.
- Elevated short interest — ripe for a potential squeeze.
- Institutional interest — CalSTRS holding signals some smart money attention.
It’s high-risk for sure. But stocks like QBTS can deliver explosive gains on the right headline or squeeze setup.
SEALSQ Corp. (NASDAQ: LAES) — The Semiconductor and Quantum Computing Penny Stock
My ninth AI and quantum penny stock pick is SEALSQ Corp. (NASDAQ: LAES).
SEALSQ is quietly positioning itself as a leader in quantum-safe space communications. They’re partnering with WISeSat to launch WISeSat 3.0 — the first satellite to embed SEALSQ’s Quantum RootKey tech.
This move will provide a Proof-of-Concept for post-quantum key distribution (QKD) in space — a major security advancement as quantum computers start to crack today’s encryption.
SEALSQ plans to invest $10 million into WISeSat.Space and is targeting a full satellite constellation rollout by 2027.
Why I Like It
- First-mover advantage in quantum-safe satellite communications.
- Hot sector convergence — space tech + cybersecurity + quantum.
- Catalyst timing — satellite launch is set for mid-June.
Keep in mind — this is a speculative space with emerging tech. But if this launch succeeds, LAES could be well positioned for major media attention and sector buzz.
IonQ Inc. (NYSE: IONQ) — The Quantum Computing Stock With the Disappointing Earnings Win
My tenth AI and quantum penny stock pick is IonQ Inc. (NYSE: IONQ).
IONQ has been a monster — the stock is up 418%* over the past year.
It’s one of the true leaders in quantum computing, focusing on trapped-ion technology, which many believe could be the most practical pathway to real quantum advantage.
Here’s a look at some of IONQ’s key partnerships.
Despite a bit of turbulence earlier this year (the stock sagged after a disappointing earnings reaction in February), IONQ is back in favor. Wall Street analysts are flashing strong buy ratings, and technical indicators like the 50-day EMA are bullish.
Why I Like It
- Industry leader — in trapped-ion quantum computing.
- Strong technical setup — uptrend in place, momentum building.
- Massive sector tailwinds — quantum is gaining mainstream attention fast.
This stock is not a pure penny play anymore, but the setups and catalysts are exactly the same. Look for continuation moves as quantum hype returns.
*Past performance does not indicate future results
Can I Buy DeepSeek Stock?
You can’t buy DeepSeek stock yet. DeepSeek AI is a Chinese AI startup, not a publicly-traded company. That means there is no stock symbol or ticker symbol available for purchase on any stock exchange.
The rise of DeepSeek AI has sent shockwaves through the artificial intelligence sector, triggering a stock market reaction that saw tech stocks sell off in response. The stocks on this watchlist are some of the stocks you can buy…
NVIDIA Corp (NASDAQ: NVDA), Meta Platforms Inc (NASDAQ: META) and Palantir Technologies Inc (NASDAQ: PLTR) are some of the more expensive AI stocks that traders are buying on the dip after DeepSeek’s release.
If you’ve got your sights set on DeepSeek, here’s what you need to know.
Is DeepSeek Publicly Traded?
As of early 2025, DeepSeek AI is a private company owned by Chinese hedge fund High-Flyer, which was founded by Liang Wenfeng. This means that investors cannot buy DeepSeek AI stock through popular trading platforms or traditional share trading apps.
The company first gained attention when its DeepSeek-V3 model, an open-source large language model, became the most-downloaded free app on Apple’s App Store in the U.S. This previously-little-known AI app has since sparked discussions about its potential to challenge U.S. AI leaders like OpenAI and Google.
Despite its huge demand, DeepSeek remains private and is currently not listed on any major stock exchange globally.
When Will DeepSeek Have an IPO?
There is no official timeline for a DeepSeek AI IPO, and the company has not announced any plans to go public. As a Chinese AI startup, it may face regulatory challenges if it decides to list on a U.S. exchange like the Nasdaq or the New York Stock Exchange (NYSE).
Given the ongoing technology arms race between the U.S. and China, any potential DeepSeek AI IPO would likely be closely scrutinized by governments on both sides.
If DeepSeek AI does eventually pursue a public listing, it could follow a path similar to Alibaba Group Holding Ltd. (NYSE: BABA), which first debuted in the U.S. before later exploring listings in China. However, until official news emerges, investors should remain cautious about speculation surrounding a DeepSeek IPO.
How Can You Invest in DeepSeek?
Because DeepSeek AI stock is not currently available, traders and tech investors cannot directly deposit funds into a brokerage account to purchase shares. The company remains under the control of Chinese hedge fund co High-Flyer, a quantitative hedge fund specializing in AI-driven strategies.
For those interested in the artificial intelligence industry, the supply chain surrounding AI-related stocks may provide alternative investment opportunities. Companies involved in advanced chips and AI infrastructure could see increased demand as the sector evolves.
However, caution is necessary. The stock selloff following DeepSeek’s rise underscores the volatility of the tech stocks market, especially in periods of uncertainty.
But for traders like me, that can create opportunity.
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.
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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:
- Set up a trading account: Choose a broker that offers access to penny stocks and supports trading automation.
- Choose the right trading platform: Look for platforms with robust research tools, low-cost trading options, and good user reviews.
- 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:
- Cyngn Inc (NASDAQ: CYN)
- Nauticus Robotics Inc (NASDAQ: KITT)
- BigBear.ai Holdings Inc (NYSE: BBAI)
- Microbot Medical Inc (NASDAQ: MBOT)
- Guardforce AI Co Ltd (NASDAQ: GFAI)
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.
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