SOUN Leads the AI Stocks Up for Explosive December Growth

Artificial intelligence (AI) continues to dominate market trends, offering significant opportunities for growth. While industry giants like NVIDIA lead the sector, smaller AI penny stocks under $5 are gaining attention for their potential. Here’s an updated look at three AI-focused penny stocks that traders should watch in December 2024.

My top AI stock picks for December  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.

Take a look at my complete AI penny stock watchlist here!

Top 3 AI Stocks to Watch for December 2024

My top AI penny stock picks are:

• NASDAQ: SOUN — SoundHound AI Inc — The Voice AI Leader Trading at 52-Week Highs
• NASDAQ: GXAI — Gaxos.AI Inc — The Game-Changing Visual Editor Stock
• NASDAQ: SERV — Serve Robotics Inc — The AI-Driven Last-Mile Delivery Play Backed By Nvidia

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.

Now, onto the picks…

SoundHound AI Inc (NASDAQ: SOUN): The Voice AI Leader Trading at 52-Week Highs

SoundHound AI (SOUN) has been a standout in the AI space, riding the sector’s momentum since the ChatGPT surge in 2023. Known for its cutting-edge voice recognition technology, SOUN recently posted record-breaking financials, pushing it to new highs and earning it a top spot on my watchlist.

SOUN’s Q3 earnings were a game-changer. The company reported $25 million in revenue, an 89% year-over-year increase, with an EPS beat of $0.03. This solid growth is backed by partnerships like its “Hey Kia” launch in India, expanding its voice AI solutions globally.

Currently trading close to $15, SOUN is at all-time highs, and chopping around a key resistance level. This stock has shown consistent volume and momentum, making it a prime candidate for breakout setups.

Why I’m Watching

Here’s why SOUN deserves attention:

• The Financials: Record Q3 revenue and earnings beats don’t lie—SOUN is growing at a rapid pace.
• The Sector Leadership: Voice AI is a hot niche, and SoundHound is at the forefront, with its tools being integrated into everything from cars to smart devices.
• The Chart: SOUN’s price action is strong, with a clear upward trend. It’s setting up for a potential breakout above its 52-week highs.

SOUN has momentum, but I’ve learned not to chase. I’ll be watching for a breakout above resistance or a dip-buy opportunity into any big panics. Stocks like SOUN often follow my framework, offering multiple chances to profit as they consolidate or surge higher.

If you’re watching SOUN, focus on the chart patterns and volume. Don’t let hype cloud your judgment—stick to a solid plan, and let the trade come to you. Congrats to those already riding this wave—there’s more to come if it follows the right setups!

Gaxos.AI Inc (NASDAQ: GXAI): The Game-Changing Visual Editor Stock

Gaxos.AI (GXAI) is on my radar after a strong move last week. The company announced the release of its visual editor, a new tool aimed at simplifying AI integration for game developers using the Godot Engine. This news sparked major interest and sent the stock soaring with unusually high trading volume.

GXAI’s visual editor is designed to make it easier for developers to integrate AI into their games, a space that’s gaining momentum as the gaming industry looks to innovate. According to CEO Vadim Mats, this tool complements the company’s API, offering more accessible solutions to game publishers and developers alike.

Last week, GXAI traded over 129 million shares—far exceeding its 100-day average of 1.89 million. With that kind of volume and the hype around its recent launch, this stock is worth keeping on your watchlist.

Why I’m Watching

Here’s why GXAI stands out:

• The Catalyst: The visual editor news aligns with AI’s growing role in game development, making GXAI a stock to watch.
• The Chart: GXAI showed strong momentum last week, hitting an intraday high of $5.51 before consolidating above $4.
• The Volume: Trading volume like this usually means there’s more action ahead.

This stock has potential, but I’ve learned not to chase. I was too aggressive on this one over the weekend and had to cut losses after taking too big a position. If I’d simply held, I’d be up $10K—but hindsight doesn’t pay the bills.

Listen to me break down my weekend strategy here!

No worries—I made it up the next day on a small trade that netted me $690 in profit (starting stake $7,050).

I’ll watch GXAI for more dip-buy opportunities into big panics. These low-float movers can be explosive when they follow my framework, so patience is key. Congrats to those who nailed it last week—let’s see how it plays out from here.

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Serve Robotics Inc (NASDAQ: SERV): The AI-Driven Last-Mile Delivery Play Backed By Nvidia

Serve Robotics (SERV) is shaking up the delivery game with its autonomous robots, designed to streamline last-mile logistics. Backed by giants like Nvidia and Uber, this $500 million market-cap company is scaling rapidly, and its latest moves have put it squarely on my radar.

Serve’s Gen3 robots are the most advanced yet, running on Nvidia’s Jetson Orin technology. These bots are faster, smarter, and cheaper to operate, reducing delivery costs by 50%. Since early 2022, Serve’s robots have completed over 50,000 orders with 99.94% reliability—outperforming human drivers by a factor of 10. That’s some serious efficiency.

The company recently secured a deal to deploy 2,000 more robots by the end of 2025, expanding into California, Dallas, and Fort Worth. Uber, one of Serve’s largest backers, stands to benefit as it reduces reliance on human drivers. These partnerships are a big vote of confidence, but don’t let the hype blind you—there are risks here too.

Why I’m Watching

Here’s what makes SERV interesting right now:

• The Chart: SERV spiked nearly 50% on news of a strategic acquisition and raised analyst ratings.
• The Partnerships: Nvidia and Uber together own over 20% of the company. When heavyweights like these are invested, it’s worth paying attention.
• The Potential: Serve says its robots could eventually bring delivery costs down to $1. If that scales, this company could carve out a serious niche.

SERV is burning through cash fast—$50.9 million in reserves won’t last long at its current rate of losses. The company recently set up a stock offering to raise another $100 million, which could dilute existing shares.

I’ll keep an eye on SERV for dip-buy setups into big panics or consolidation at key levels. The stock’s volatility means there could be opportunities ahead—stay patient and trade the patterns, not the hype.

Embed SERV chart

* Past performance does not indicate future results

How to Trade AI Penny Stocks

AI penny stocks like SOUN, GXAI, and SERV offer lucrative opportunities but come with high volatility. Here’s how to navigate this dynamic market:

1. Monitor Catalysts: Earnings reports, partnerships, and sector news often drive price movements.
2. Use Technical Analysis: Identify key support and resistance levels to time entries and exits.
3. Set Risk Parameters: Use stop-loss orders to limit downside exposure.

Conclusion

AI penny stocks continue to deliver explosive moves fueled by strong fundamentals and market catalysts. Stocks like SoundHound AI, Gaxos.AI, and Serve Robotics are positioned for potential gains as they capitalize on sector momentum. With disciplined strategies and careful monitoring, traders can make the most of these opportunities.

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This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Our traders will never trade any stock until they see a setup they like. Their strategy is to capture short-term momentum while avoiding undue risk exposure to a stock’s long-term volatility. This method is especially useful when trading penny stocks or other high-risk equities, where rapid gains can be made by understanding stock patterns, manipulation, and media hype. Whether you are an active day trader looking for key indicators on a stock’s next move, or an investor doing due diligence before entering a position, Timothy Sykes News is designed to help you make informed trading decisions.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

• Penny Stocks Trading Guide
• Best Penny Stocks Under $1 to Buy Today
• Top 8 Penny Stocks to Watch on Robinhood

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade, the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.

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