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3 Top AI and Quantum Computing Penny Stocks for Jan. 2025

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Written by Timothy Sykes
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The AI and quantum computing sectors continue to be some of the highest-upside plays in the market. With volatility at an all-time high, penny stocks in these hot niches are perfect for capturing short-term moves.

Here’s my updated AI and quantum computing penny stock watchlist for January 2025, along with tips for trading smarter and tools to help you crush it in this market.

Want to stay ahead? Sign up for my NO-COST weekly watchlist and get exclusive insights into the market’s biggest opportunities!

Top AI and Quantum Computing Penny Stock Picks for January 2025

My top AI and quantum computing penny stock picks for January 2025 are:

  • NASDAQ: SOUN — SoundHound AI Inc — The Record Revenue AI Penny Stock
  • NASDAQ: CRNC — Cerence Inc. — The NVDA Collaboration Stock That’s Consolidating
  • NASDAQ: QUBT — Quantum Computing Inc — The Quantum Computing Sector Leader Penny Stock

Check out my main AI and quantum computing watchlist here for my entire January watchlist!

Two of these stocks had enormous 2024s…

Stock TickerCompany2024 Performance
NASDAQ: SOUNSoundHound AI Inc+ 990.38%
NASDAQ: CRNCCerence Inc- 21.40%
NASDAQ: QUBTQuantum Computing Inc+ 1,983.15%

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.

Let’s get to the picks…

SoundHound AI Inc. (NASDAQ: SOUN) — The Record Revenue AI Penny Stock

SoundHound AI Inc. (NASDAQ: SOUN) continues to be a standout in the AI sector, gaining traction since its ChatGPT-fueled run in early 2023. Shares have soared from $1 to $4.50 during the initial AI boom and are now trading above $15 after smashing all-time highs in December.

The recent pullback could signal an opportunity for traders to position themselves or a warning that enthusiasm around the stock is waning.

Here’s why SOUN deserves your attention:

  1. Big Backers: NVIDIA Corporation (NASDAQ: NVDA) holds a stake in SOUN, adding credibility in a sector brimming with speculative plays.
  2. Record Financials: On November 12, SOUN reported a record Q3 with $25 million in revenue (an 89% YoY increase) and an EPS beat by $0.03.

SOUN remains a prime example of a low-float runner in the AI space. Watch for support levels around its recent highs, and look for opportunities as the price consolidates.

Charting the Momentum in SOUN

Take a look at the multi-day chart below, every candle represents one trading day:

SOUN chart multi-month, 1-day candles. Source: StocksToTrade

With its bullish trajectory and NVIDIA’s backing, SoundHound is set to remain a top watch for traders seeking AI momentum plays.

Cerence Inc. (NASDAQ: CRNC) — The NVDA Collaboration Stock That’s Consolidating

Cerence Inc. (NASDAQ: CRNC) joins SoundHound as another AI stock with significant ties to NVIDIA.

The buzz around Cerence spiked on January 3 after the company announced an expanded collaboration with NVDA to advance its CaLLM family of language models, designed to power AI-driven voice interactions in vehicles.

Here’s why CRNC is on my radar:

  1. Major Catalyst: The NVDA partnership caused a sharp price spike of 240%*, pushing CRNC to one-year highs.
  2. Framework Setup: After a brief retreat from those highs on January 6, the stock is showing signs of a potential bounce. This aligns with #5 and #6 from my 7-Step Framework: “Dip Buy” and “Dead Pump Bounce.”

Here’s the Opportunity in CRNC

The stock was already consolidating from a November spike, and January’s NVDA news added fresh momentum. Traders should watch for continued volatility and opportunities to profit from well-timed entries.

Cerence represents a strong candidate for traders who thrive on setups that combine big catalysts, sharp price action, and the chance for follow-up moves. Watch for a bounce as the price consolidates and pay attention to any news catalysts for further confirmation.

More Breaking News

Quantum Computing Inc. (NASDAQ: QUBT) — The Quantum Computing Sector Leader Penny Stock

Quantum Computing Inc. (NASDAQ: QUBT) has cemented its place as a leader among quantum computing stocks. After announcing its first TFLN photonic chip foundry order on November 13, the stock skyrocketed an incredible 1,800%* over multiple days.

But the story doesn’t end there.

The stock faced a sharp selloff on January 8, following comments from NVIDIA CEO Jensen Huang. He said that practical quantum computing solutions remain decades away, rattling traders and leading to big sell-offs in the sector.

Here’s why QUBT still has trading potential:

QUBT chart multi-day, 1-minute candles. Source: StocksToTrade

With its proven ability to generate massive moves, QUBT remains a top candidate for traders looking to profit from quantum computing’s early-stage hype.

* Past performance does not indicate future results.

Why XGPT Is a Game-Changer for Traders

In this fast-moving market, tools like XGPT are essential. My proprietary AI trading bot scans for spikers, analyzes patterns, and generates actionable trade plans.

How XGPT Helps Traders:

  1. Identifies Early Moves: XGPT flagged QUBT before its massive November run, giving traders the chance to prepare.
  2. Saves Time: With so many potential plays, XGPT narrows down the list to the most promising setups.
  3. Customized Trade Plans: The bot builds plans based on my framework, so you’re always ready to execute with confidence.

Want to test XGPT? Type in one of these stocks—like SOUN or QUBT—and see how it builds a trade plan just like I would!

Tips for Trading AI and Quantum Computing Stocks

  1. Focus on Low Floats: Stocks like QUBT have low floats, meaning fewer shares are available for trading. This creates massive spikes when demand surges.
  2. Watch Volume: High trading volume signals strong interest and increases the likelihood of big moves.
  3. Use Pre-Market and After-Hours Sessions: Spikes often happen outside regular hours. Be prepared to trade during these extended sessions.
  4. Stick to Patterns: Whether it’s a morning spike or a midday dip-buy, follow proven patterns to maximize your profits.

The Future of AI and Quantum Computing

AI and quantum computing are two of the hottest sectors right now, and they’re only getting started. As these technologies evolve, they’ll create even more opportunities for traders who stay ahead of the trends.

Don’t let the hype distract you from the work. Watch the stocks, use tools like XGPT, and follow my framework to lock in consistent gains.

What AI and quantum computing stocks are YOU watching — let me know in the comments!

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”