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3 Underrated AI Stocks: Can RXRX, SES, and WOLF Break Out?

TIM SYKES•UPDATED JUN. 15, 2026, 5:49 PM ET
and Fact-checked by Bryce Tuohey

The AI sector remains one of the most volatile and opportunity-rich themes in the current market — but not all AI stocks are created equal. Here are three lesser-known AI plays traders are watching closely right now for breakouts, rebounds, or speculative surges. These aren’t buy-and-hold plays — they’re setups for high-risk, high-reward trades.

Check out my AI penny stocks watchlist for more picks!

3 AI Penny Stocks To Watch This Week

Stock TickerCompanyPerformance (YTD)
NASDAQ: RXRXRecursion Pharmaceuticals Inc.
NYSE: SESSES AI Corporation
NYSE: WOLFWolfspeed Inc.

These supernovas happen faster than most traders realize. If you aren’t prepared, you miss the move. If you chase, you almost never come out ahead.

We see multiple supernovas every month. Study the chart. Learn the catalyst. And get your mind locked in for the next explosive move.

I have a full tutorial on how to trade these intense runners. Watch my video below:

1. Recursion Pharmaceuticals Inc. (NASDAQ: RXRX) — AI Biotech With Cathie Wood Backing

My first pick is Recursion Pharmaceuticals Inc. (NASDAQ: RXRX), a tech-bio hybrid using AI to radically accelerate drug discovery.

RXRX has fallen nearly 25% YTD, but don’t ignore this dip. The company recently gained full rights to REV102, a potential oral therapy for a rare bone disease — and it did so on the cheap, with milestone upside. Meanwhile, its AI platform, RecursionOS (developed with Nvidia), is becoming smarter with each failed or successful compound — a self-learning model feeding future wins.

Read more: RXRX: Market Moves and Future Projections

Cathie Wood’s Ark Invest owns over $160 million in RXRX, and while the company’s drug pipeline is early-stage, the platform itself has huge monetization potential via partnerships with Bayer and Roche. Don’t sleep on the short interest either — a bearish crowd and beaten-down chart make this ripe for a potential bounce.

Why traders are watching RXRX:

  • Undervalued AI-powered biotech platform with fresh catalyst (REV102 acquisition)
  • High short interest and institutional backing (Ark Invest, Nvidia partnership)
  • Speculative rebound setup after sharp underperformance

Watch volume trends and intraday levels closely — this is a high-risk chart with breakout potential if it reclaims key support near $6.50.

2. SES AI Corporation (NYSE: SES) — Tech Turnaround with a Software Catalyst

SES AI Corporation (NYSE: SES) is flying under the radar as one of the only true AI battery tech plays on the market.

Despite a messy balance sheet, SES just launched MU-0.5, the latest version of its AI-driven “Molecular Universe” software — featuring a “Deep Space” upgrade designed to fast-track commercial battery development. The company also announced a $30 million stock buyback, and affirmed liquidity of over $200 million heading into year-end. That’s rare in this space.

While fundamentals remain mixed, Q1 earnings beat expectations and the stock surged over 12% in a single session on news momentum. SES is walking the tightrope — big tech promise, weak profitability, but a loyal retail following and innovation narrative that could drive further upside.

Why traders are watching SES:

  • Recent breakout on MU-0.5 software release and buyback news
  • Affirms 2025 liquidity outlook despite weak fundamentals
  • One of the few battery-tech names with AI capabilities

This is a news-driven setup — follow the headlines and look for retests of recent highs around $2.20.

More Breaking News

3. Wolfspeed Inc. (NYSE: WOLF) — Bankrupt or Breakout? Traders Don’t Care

My third pick is Wolfspeed Inc. (NYSE: WOLF) — and yes, it’s a bankruptcy play.

WOLF filed for Chapter 11 protections in late June, yet the stock exploded over 260%* off its lows, driven by short covering, meme stock chatter, and the appointment of a new restructuring-savvy CFO. Traders are betting on a turnaround narrative or at least another leg up before delisting.

Make no mistake — existing shareholders are likely to get crushed, with restructuring plans suggesting they’ll retain only 3%–5% of the new entity. But that hasn’t stopped the stock from doubling in a day, retracing, then bouncing again. This is pure meme squeeze mechanics in action.

Why traders are watching WOLF:

  • Short squeeze fuel after Chapter 11 announcement
  • CFO with turnaround experience creates narrative momentum
  • Ultra-high volatility with speculative upside

This is not a long-term hold — it’s a speculative, day-trader-focused play where volume and timing matter more than fundamentals.

Trade this like a firecracker. Don’t get greedy, and don’t hold overnight unless you know what you’re doing.

* Past performance doesn’t indicate future results

Bottom Line

RXRX, SES, and WOLF are all small-cap AI-related plays with radically different profiles — but they share one thing: volatility meets narrative. Whether it’s a techbio underdog (RXRX), a software-powered battery innovator (SES), or a bankrupt short squeeze (WOLF), each name offers unique setups for aggressive traders watching AI themes develop in unexpected places.

These aren’t long-term investments — they’re risk-managed, technical trades. Know your levels. Use stops. Don’t chase green candles. When the momentum fades, be the first out — not the last.

If you want to know what I’m looking for — check out my free webinar here!

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.

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:

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.

Dig into StocksToTrade’s watchlists here:

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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”