10 Top AI and Quantum Computing Penny Stocks for Oct. 2025

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 and Quantum Computing Stocks To Watch

My top AI and quantum computing stock picks for October — 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 …

I don’t just trade these stocks randomly. I’ve developed a system for optimal entries and exits…

The best part? It uses AI!

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?

10 Best AI and Quantum Computing Stocks for October 2025

My top AI and quantum computing penny stock picks are:

• NASDAQ: RR — Richtech Robotics Inc — The AI-Driven Retail Automation Stock
• NASDAQ: IREN — IREN Ltd — The Data Center Stock Investing in Cloud Storage
• NASDAQ: SOUN — SoundHound AI, Inc — The Post-Spike AI Voice Stock
• NASDAQ: DUO — Fangdd Network Group Ltd — Is It Time for Another Run?
• NASDAQ: APLD — Applied Digital Corporation — The Data Center Provider Partnered With CoreWeave
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing With the Breakthrough Tech
• NASDAQ: QUBT — Quantum Computing Inc — The NASA Contract Quantum Computing Stock
• NYSE: QBTS — D-Wave Quantum Inc — The Quantum Computing Stock Setting New All-Time Highs
• NASDAQ: LAES — Sealsq Corp — The Semiconductor and Quantum Computing Penny Stock
• NYSE: IONQ — IONQ Inc — The Higher-Priced Quantum Computing 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 SoundHound AI Inc (NASDAQ: SOUN), Applovin Corp (NASDAQ: APP), and NVIDIA Corp (NASDAQ: NVDA).

• 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 …

1. Richtech Robotics Inc (NASDAQ: RR) — The AI-Driven Retail Automation Stock

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

Richtech Robotics just landed a massive credibility boost: A multi-year master services agreement with a top global retailer, effective August 21.

And the resulting stock spike extended into September.

While the retailer’s name hasn’t been disclosed, the structure of the deal suggests serious long-term potential.

It’s a two-year base agreement, automatically renewing each year unless canceled. Which means Richtech could become a core automation partner inside one of the biggest retail operations in the world.

RR surged 140%* in September, tagging $5.71 before pulling back. That level now marks the key breakout zone heading into the new month.

Stay up-to-date on key RR catalysts.

From a business perspective, Richtech’s product lineup is where hardware meets execution.

From robotic servers (Matradee) to autonomous cleaning units (DUST-E) and heavy-duty logistics bots (Titan), the company’s AI solutions are already being deployed across restaurants, hospitals, casinos, and more.

Why I Like It

This is a real business, with real tech, now getting plugged into real retail infrastructure. That’s a recipe that can generate serious market attention.

Trade Potential:

• Bullish Scenario: If RR reclaims $5.71 on strong volume, momentum could carry it much higher
• Bearish Scenario: Failure reclaim $5 could signal fading interest, with $4 or $3.50 as a potential support retest from earlier in 2025.

With AI and robotics accelerating, and RR now tied to a major unnamed retailer, this stock is quietly evolving into a serious AI contender.

2. IREN Ltd (NASDAQ: IREN) — The Data Center Stock Investing in Cloud Storage

My second AI penny stock pick is IREN Ltd (NASDAQ: IREN).

On August 29, IREN announced a second massive GPU order: 1,200 air-cooled Nvidia B300s and 1,200 liquid-cooled GB300s, totaling $168 million.

These will be installed at their Prince George campus in Canada, where a new 10MW liquid-cooled facility is under construction.

This brings IREN’s total GPU count to 10,900, including H100s, H200s, B200s, B300s, and GB300s — all high-end chips fueling AI workloads.

IREN has also secured NVIDIA Preferred Partner status and $96M in non-dilutive financing, signaling strong vendor confidence and financial execution.

And on September 8 we learned that IREN mined 668 Bitcoin in August.

The stock exploded 790%* in 2025, recently hitting all-time highs following reports in late September that it doubled its AI Cloud to 23k GPUs and raised its ARR target to more than $500 million.

Why I Like It

IREN is transitioning from crypto miner to cloud infrastructure leader — With 3GW of grid power, cutting-edge GPU deployments, and a path to $1.25B in annualized revenue by year-end.

Trade Potential:

• Bullish Scenario: A breakout above $50 could ignite an even more incredible buying frenzy.
• Bearish Scenario: Failure to hold $40 could lead to a pullback to the $35 or $30 support zone.

IREN is one of the most aggressive GPU build-out stories in the market. And it’s just getting started.

Read more about the catalysts pushing IREN higher.

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3. SoundHound AI, Inc (NASDAQ: SOUN) — The Post-Spike AI Voice Stock

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

SoundHound has been one of the most explosive names in the AI space.

And after August’s sharp earnings-driven pop, the stock broke out to new local highs in September.

SoundHound has already built a deep tech stack powering conversational AI across industries. From voice-enabled cars and TVs to restaurant kiosks and customer service platforms.

Their flagship tools include Houndify, Smart Answering, and SoundHound Chat AI, giving brands powerful voice-first solutions that actually work in the real world.

Following its viral rise during the early ChatGPT surge in 2023, SOUN posted multiple triple-digit runs, including a 400%* spike in 2024 that led to new all-time highs.

It’s already rallied 190%* in 2025, fueled by strong earnings and bullish revenue guidance tied to the company’s growing Vision AI platform.

But here’s where it gets really interesting …

Despite the rally, SOUN is still 29% off its highs. Most see that as a warning, I see it as upside potential.

More information: SoundHound AI: Growth or Bubble?

Why I Like It

The massive short interest (nearly 1/3 of the float), surging call volume, and rising institutional attention make SOUN a sleeper setup for a potential short squeeze.

And the short squeezes in this 2025 market are intense.

Trade Potential:

• Bullish Scenario: A breakout above $20 could send this flying toward $24 highs from December. Especially if analysts upgrade or retail volume pours in.
• Bearish Scenario: Watch $15 as a short-term support line.

This is a classic post-spike consolidation with all the ingredients for another move: Smart tech, proven volatility, and now, a breakout to agitate shorts.

4. Fangdd Network Group Ltd (NASDAQ: DUO) — Is It Time for Another Run?

My fourth AI penny stock pick is Fangdd Network Group Ltd (NASDAQ: DUO).

This is one of the most explosive low-float runners in recent memory.

It spiked 1,000%* between September and October of 2024. And it surged again from August to September after the first-half financials dropped.

What’s driving the boom?

A rare rebound in China’s real estate market. And DUO is capitalizing.

For the first half of 2025, DUO reported revenue of RMB 203.4 million, up from RMB 140 million a year prior. That’s a solid 45% increase despite China’s broader property sales still in decline.

According to CEO Xi Zeng, the real estate market appears to be bottoming out with “continuous policy support” and a “narrowing rate of decline” year-over-year.

Zeng emphasized deeper partnerships, innovation in new business lines, and a focus on balanced growth. All critical signs DUO is aiming to evolve from just a speculative runner into a more fundamentally driven story.

Why I Like It

This is a low-float, high-volatility China play that’s already proven it can run hard. Now with improving fundamentals and macro tailwinds, the setup is aligning again.

Trade Potential:

• Bullish Scenario: Breakout over $5.34 with volume could lead to a fast squeeze higher.
• Bearish Scenario: Failure to hold $3 support could trigger a fade toward the $2.50 zone.

DUO is a momentum name with fuel in the tank. If China real estate headlines trend bullish again, it could be game on.

5. Applied Digital Corporation (NASDAQ: APLD) — The Data Center Provider Partnered With CoreWeave

My fifth AI penny stock pick is Applied Digital Corporation (NASDAQ: APLD).

Applied Digital just locked in one of the biggest moves in its history: A new lease agreement with CoreWeave that boosts its contracted lease revenue to $11 billion.

For a company that designs and operates high-performance computing (HPC) data centers tailored for AI and GPU workloads, this deal is a game-changer.

Unlike many high-growth names, APLD is building a predictable revenue stream that could fuel long-term earnings visibility.

Analysts project revenue to climb more than 47% annually, with operating efficiencies pointing toward margin expansion as its North Dakota and other campuses scale.

The stock has been red-hot. APLD rallied 670%* in 2025 and hit new 52-week highs at $25.61 by late September.

Why I Like It

Applied Digital already has CoreWeave, a major AI compute player, locked in for 150MW of capacity at its Polaris Forge 1 Campus.

Real demand, real contracts, and real growth potential.

Trade potential:

• Bullish Scenario: Clearing $25.61 resistance could spark a run much higher.
• Bearish Scenario: If momentum stalls and $20 breaks, shares could slide to $17 before finding support.

APLD’s long-term performance: A staggering +26,000%* total return over five years. It shows what happens when execution meets sector momentum.

Now, with $11 billion in locked contracts, it’s positioned as a top AI infrastructure watch.

6. Rigetti Computing Inc (NASDAQ: RGTI) — The Quantum Computing With the Breakthrough Tech

My sixth AI penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

Rigetti Computing has been the talk of the market. It ripped 4,300%* across 2024 and 2025. And now it’s back in the spotlight after a breakthrough that could redefine its future.

The company reported 99.5% median two-qubit gate fidelity on its new 36-qubit system, effectively halving error rates compared to its earlier Ankaa™-3 platform.

By linking modular 9-qubit chips together, Rigetti is laying the foundation for scalable 100+ qubit machines as soon as this year.

This technical leap is backed by a $5.48M Air Force grant and supported by partnerships with Quanta Computer, Iowa State, and Lawrence Livermore National Lab. It’s the kind of validation that separates Rigetti from pure hype plays.

Read more: RGTI Soars After Milestone Developments

Still, the financials paint a mixed picture: $9.2M in trailing revenue versus $138M in losses. With the stock trading at over 500x sales, investors are clearly betting on the long-term vision, not today’s numbers.

Why I Like It

Quantum computing is now being tied to AI acceleration and national security narratives, from the Quantum Leadership Act of 2025 to growing “Q-Day” fears around encryption.

Rigetti is positioned right at that intersection. And that’s a key reason why it surged in September.

Regardless of its inconsistent financials, the link to AI and chart volatility make it a top watch.

Trade Potential:

• Bullish Scenario: A breakout above $34.40 could extend the rally to test $40.
• Bearish Scenario: A confirmed drop under $30 could drag it back toward $20, the top from January 2025.

With hype, policy, and real tech progress converging, RGTI remains one of the most speculative, but potentially transformative, quantum stocks on the board.

7. Quantum Computing Inc (NASDAQ: QUBT) — The NASA Contract Quantum Computing Stock

My seventh AI penny stock pick is Quantum Computing Inc (NASDAQ: QUBT).

Quantum Computing just landed another high-profile government win: A subcontract with NASA’s Langley Research Center worth up to $406K.

The project aims to use QCi’s Dirac-3 quantum computer to tackle a critical problem: Removing sunlight noise from space-based LIDAR systems.

For NASA, this could mean cleaner, more reliable daytime atmospheric data without the need for bulky, expensive optics. That’s a breakthrough that could cut costs and enable more compact satellite payloads.

CEO Dr. William McGann called the deal an expansion of QCi’s growing relationship with NASA, and emphasized its potential to reshape how Earth observation data is collected.

Beyond CALIPSO and ICESat-2 satellites, the technology could support future climate and atmospheric science missions.

Read more: QUBT: What’s Next For Investors.

The market loved this news. QUBT shares ripped 250%* since April 30 and are now consolidating above $20.

Why I Like It

Most quantum computing names are still theory-driven. QUBT is one of the few applying its tech to real-world, funded projects. With NASA as a partner.

That’s powerful validation.

Trade Potential:

• Bullish Scenario: A decisive push above $24 could set off a run toward $27, the all-time highs from December ‘24.
• Bearish Scenario: Weakness under $18 could spark a retest of $16 support, its post-spike floor.

Quantum + NASA = serious credibility.

With government contracts stacking up, QUBT has the narrative and the chart setup to keep traders engaged.

8. D-Wave Quantum Inc (NYSE: QBTS) — The Quantum Computing Stock Setting New All-Time Highs

My eighth AI penny stock pick is D-Wave Quantum Inc (NYSE: QBTS).

QBTS has been a popular mover in the quantum computing sector, and right now it’s shooting upward at a vertical pace.

With shares already at all-time highs, this setup is hard to ignore.

Unlike many quantum names that are still years away from practical use, D-Wave already delivers systems and services.

Its Advantage and Advantage 2 quantum computers, the Leap cloud platform, and its open-source Ocean tools are being used today in areas like logistics optimization, manufacturing, and portfolio management.

The latest buzz came on September 2, when D-Wave unveiled its Quantum AI toolkit — fully integrated with PyTorch.

This integration makes it easier for AI developers to plug into quantum workflows without reinventing their stack. Early demos show the system generating basic images, hinting at a future where quantum methods enhance generative AI.

Big-name enterprises are already on board. Companies like Japan Tobacco and Triumph are using D-Wave’s hybrid solvers to boost AI workflows, making them faster and more scalable for real-world challenges.

Why I Like It

D-Wave is positioning itself at the crossroads of two megatrends: AI and quantum computing.

That’s the kind of narrative traders love when momentum meets innovation.

Trade Potential:

• Bullish Scenario: A continued push over $29 could fuel a surge into the mid-$30s, especially if AI-driven momentum headlines continue.
• Bearish Scenario: If $25 support breaks decisively, shares may revisit $20, the breakout level from July’s resistance.

At the edge of a breakout, with a fresh AI catalyst, QBTS remains one of the most compelling quantum names on the board.

9. Sealsq Corp (NASDAQ: LAES) — The Semiconductor and Quantum Computing Penny Stock

My ninth AI penny stock pick is Sealsq Corp (NASDAQ: LAES).

Sealsq Corp. was one of the wildest runners of late 2024.

This post-quantum chipmaker exploded 1,800%* in just months, and it’s still hovering on traders’ radars.

LAES is developing next-gen secure chips for a world where quantum computing could break current encryption. Their hardware lineup includes:

• VaultIC secure microcontrollers
• RISC-V and ARM-based secure elements
• Post-quantum-ready PKI and identity provisioning tools

Read more: LAES: What’s Driving The Rise

In early September, LAES announced a Post-Quantum Crypto Protection Roadmap, including support for NIST-selected algorithms (CRYSTALS-Kyber/Dilithium) and secure systems for crypto wallets and mining rigs.

They also cleared FIPS 140-3 testing for their VaultIC 408 chip. That’s a milestone for gaining adoption across IoT, smart grid, and industrial sectors.

The QS7001 platform (with RISC-V architecture) passed critical cryptographic validation this summer.

And the upcoming QVault TPM aims to bring post-quantum security to PCs and laptops by 2026.

Why I Like It

LAES is a pure play on quantum-resilient semiconductors.

And the stock’s former volatility is too insane to ignore.

Trade Potential:

• Bullish Scenario: A breakout over $4.80 could reignite the momentum that triggered the 1,800%* move in 2024.
• Bearish Scenario: Watch for support near $3.50, where it consolidated before spiking.

Keep LAES on watch. This sleeper could snap back fast.

10. IONQ Inc (NYSE: IONQ) — The Higher-Priced Quantum Computing Stock

My tenth AI penny stock pick is IONQ Inc (NYSE: IONQ).

This is the higher-priced leader of the sector, with deep-pocketed backing and a roadmap that could reshape the industry.

The company sells cloud access to its quantum computers through AWS, Microsoft Azure, and Google Cloud, while also advancing quantum-safe networking, detectors, and hardware systems.

A standout partnership with AstraZeneca underscores its push into healthcare and life sciences, applying quantum computing to chemistry and drug discovery.

Investor sentiment started to spike in late August after B. Riley Securities initiated coverage with a Buy, citing IonQ’s potential to top $1B in revenue by 2030. Shares climbed 10.5% in a week, adding fuel to a trend that’s been building since early 2025.

In September it surged to new all-time highs.

The long-term plan: Deliver a cryptographically relevant machine by 2028 and scale to 2 million qubits by 2030.

Read more: IONQ: A Closer Look Behind The Curtain.

The company also has a $1.6B cash position, the kind of balance sheet strength to fund its aggressive expansion.

Why I Like It

IONQ is positioned as the “establishment” quantum stock. It’s a well-capitalized, institutionally backed player that’s already integrating into global cloud platforms.

Trade Potential:

• Bullish Scenario: A breakout over September highs at $76 could set up a push into the $80s.
• Bearish Scenario: If momentum fades, downside support sits near $50, where the stock’s prior highs were in January 2025.

With institutional backing, credible partnerships, and the strongest roadmap in quantum, IonQ is the sector heavyweight that’s looking for its next move.

*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:

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.