10 Top AI and Quantum Computing Penny Stocks for August 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 August — 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 August 2025

My top AI and quantum computing penny stock picks are:

• NASDAQ: ZENA — ZenaTech Inc — The AI Indoor Inventory Drone
• NASDAQ: DPRO — Draganfly Inc — The Drone Stock With Military Contracts
• NYSE: BBAI — BigBear.ai Holdings Inc — The Poor Man’s Palantir AI Defense Stock
• NASDAQ: NVTS — Navitas Semiconductor Corp — The Semiconductor Stock Teaming Up With Nvidia
• 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. ZenaTech Inc (NASDAQ: ZENA) — The AI Indoor Inventory Drone

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My first AI penny stock pick is ZenaTech Inc (NASDAQ: ZENA).

This is a low-float tech company (only 12 million shares) specializing in …

• AI drones
• Drone-as-a-Service (DaaS)
• And quantum computing solutions for mission-critical applications

Its drone subsidiary, ZenaDrone, serves a wide array of industries including defense, law enforcement, health, agriculture, and logistics, with operations spanning North America, Europe, Taiwan, and the UAE.

Why I Like It

The stock spiked 110%* in July with news that it could benefit significantly from Trump’s One Big Beautiful Bill Act, which allocates $33 billion to advanced drones and autonomous systems.

Plus $150 billion in broader defense spending.

Read more: ZenaTech Launches Drones for Defense as Market Soars

This is a huge U.S. government investment in next-gen aerospace tech, and ZenaTech is positioned as a direct beneficiary.

Currently, ZENA is consolidating above $5 per share, and holding gains after the news-driven spike.

And the low float increases the potential for big moves if new catalysts or heavy volume return.

The key here is whether the stock can maintain support above $5 and set up for a continuation breakout.

Here’s the trade potential that I see:

• Bullish scenario: A confirmed hold over $5 with increasing volume could lead to another leg higher, especially in the case of new defense contracts, partnerships, or additional government spending updates.
• Bearish scenario: A break back below $5 could trigger a panic dip buy scenario.

I’d treat it as a reactive trade — dip buys on strong support levels or breakout buys only if volume confirms.

2. Draganfly Inc (NASDAQ: DPRO) — The Drone Stock With Military Contracts

My second AI penny stock pick is Draganfly Inc (NASDAQ: DPRO).

DPRO hails itself as a pioneer in the UAV industry with a track record of innovation dating back to 1998. Including the first commercialized quadrotor UAV and the first UAV used in emergency services in North America.

Its technology has been used in life-saving missions, law enforcement, agriculture, logistics, defense.

And the company’s current lineup includes a variety of models designed for tactical, public safety, and industrial applications.

Why I Like It

The stock spiked 100%* starting July 16 after it announced that a major branch of the U.S. Department of Defense selected the C3XL UAV platform for next-generation reconnaissance and operational deployment initiatives.

This is a major validation of Draganfly’s technology and could lead to expanded DoD and allied contracts.

Most importantly, DPRO has an ultra-low float of just 4 million shares. That creates explosive potential for volatility.

I traded this stock on the first day of the run. Look at my notes below:

After the initial spike, the stock is now consolidating just under the key breakout level at $7.50.

Here’s the trade potential:

• Bullish scenario: A strong push through $7.50 with high volume could trigger another breakout/squeeze.
• Bearish scenario: Failure to reclaim $7.50 or a crack of support levels could lead to a solid panic dip buy setup.

This is a low-float momentum play — ideal for a breakout or a panic dip-buy setup.

More Breaking News

• TeraWulf’s Q2 Earnings Beat Expectations Amid Cryptocurrency Boom
• Micron’s Future: Growth or Bubble?
• Auddia’s New Path: Market Buzz
• SoundHound AI Stock Surges Amidst Strategic Partnerships and Improved Financial Outlook

3. BigBear.ai Holdings Inc (NYSE: BBAI) — The Poor Man’s Palantir AI Defense Stock

My third AI penny stock pick is BigBear.ai Holdings Inc (NYSE: BBAI).

BigBear.ai is carving out a niche as a defense-focused AI solutions provider — think of it as the budget-friendly alternative to Palantir.

The company positions itself “at the forefront of innovation for national security”, delivering cutting-edge AI, machine learning, and computer vision solutions for critical infrastructure and defense operations.

Its tech helps operators make real-time, data-driven decisions with respect to modern warfare and national security.

With expertise in advanced analytics, systems engineering, and agile AI platforms, BigBear is attracting attention as U.S. defense spending increasingly flows toward AI and autonomous decision-making solutions.

Why I Like It

BBAI surged 120%* since mid-June, driven by the growing narrative around AI defense stocks.

Unlike mega-cap players, it has a “low-price AI defense play” appeal.

The smaller market cap ensures more room for volatility. And it’s a strong sympathy trade setup if Palantir or other defense names start to surge.

Right now, the stock is consolidating under the $8.50 breakout level and holding gains from its big run in June.

That’s key because sustained consolidation at highs points toward another leg higher if volume returns.

Here’s the trade potential:

• Bullish Scenario: A breakout and confirmed hold above $8.50 with strong volume could trigger momentum buyers and send it testing psychological levels like $10 or higher.
• Bearish Scenario: A rejection and pullback under $8.50 could present a panic dip-buy setup if it finds support near prior breakout zones (like the $6 level).

I’m looking for breakout confirmation or dip buys.

4. Navitas Semiconductor Corp (NASDAQ: NVTS) — The Semiconductor Stock Teaming Up With Nvidia

My fourth AI penny stock pick is Navitas Semiconductor Corp (NASDAQ: NVTS).

Navitas is quickly becoming one of the most talked-about AI-adjacent semiconductor plays.

It’s all thanks to the partnership with Nvidia (NVDA) to develop “high-efficiency, scalable power delivery for next-generation AI workloads.”

Founded in 2014, Navitas specializes in ultra-efficient gallium nitride (GaN) semiconductors, which are revolutionizing power electronics by delivering better performance, smaller size, lower cost, and higher energy efficiency compared to traditional silicon chips.

The company projects a major opportunity in the $13 billion power semiconductor market by 2026, and GaN’s role in reducing energy consumption makes it a key tech company for the clean energy transition.

Why I Like It

The Nvidia partnership has been a game-changer for this stock — NVTS spiked 390%* since the May 22 announcement.

The spike was fueled by the AI hardware boom and investor enthusiasm for anything that’s tied to Nvidia’s ecosystem.

Since the spike, the stock bounced off support near $6 and is now attempting to push through the key $9 breakout level. A solid breakout could trigger another momentum wave as traders look for sympathy plays in the Nvidia supply chain.

Here’s the trade potential:

• Bullish Scenario: A strong move and confirmed hold above $9 with heavy volume could set the stage for a run toward double digits as AI hardware spending ramps up.
• Bearish Scenario: A rejection at $9 could lead to a sharp pullback, where dip buyers may look for another rebound.

This remains a reactive trade — either a breakout play or a dip buy near strong support levels.

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 is quickly carving out a name as a serious AI infrastructure contender. It’s been in my sights for a while.

The company just locked in a 250MW lease deal with CoreWeave (NASDAQ: CRVW) for its Ellendale campus — a purpose-built, liquid-cooled facility designed for heavy AI workloads, scheduled to go live in late 2025.

This partnership is huge. CoreWeave, fresh off its IPO momentum, is one of the hottest names in GPU infrastructure. Pair that with APLD’s earlier $5.4 billion in financing agreements with Macquarie and SMBC, and you’ve got a strong vote of confidence in its hyperscale expansion strategy.

Applied Digital brands itself as a “dirt to compute” innovator, building AI-ready data centers from the ground up. And the CoreWeave deal solidifies its move into the top tier of AI infrastructure providers.

Why I Like It

The stock exploded 120%* higher in June, fueled by the broader AI data center boom.

Now, APLD is making another run toward its key $15 breakout level, and it’s armed with the CoreWeave catalyst.

Here’s the trade potential:

• Bullish Scenario: A confirmed breakout and hold above $15 with heavy volume could trigger a momentum wave that shoots the price much higher.
• Bearish Scenario: A failure to push through $15 could mean a pullback to the $9 support zone, where dip buyers might look for another entry.

This is a momentum-driven AI trade — watch the price action closely, as sympathy plays in the AI ecosystem are hot right now.

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 is back on traders’ radar as quantum computing momentum heats up again.

After a brutal early 2025 pullback — sparked by Nvidia’s CEO saying true quantum computing is still years away — Rigetti just delivered a major technical breakthrough: a 99.5% median fidelity rate for two-qubit gates on its 36-qubit modular system.

This means that Rigetti is getting very close to the 99.9%+ threshold needed for error-corrected quantum computing — where qubits can run long, complex programs reliably.

The news sent the stock soaring 40% in late July as traders piled back into former quantum runners.

Rigetti’s CEO Subodh Kulkarni told Benzinga that the company is only four years away from reaching quantum advantage, a milestone that’s expected to unlock commercial adoption and revenue opportunities.

For a stock that ran 1,100%* from late 2024 into early 2025, traders love this kind of “next-gen tech comeback” narrative — and quantum computing is once again drawing speculative money into the market.

Why I Like It

The hype cycle is reigniting, and RGTI is approaching its key $20 breakout level.

Here’s the trade potential:

• Bullish Scenario: A strong breakout and hold over $20 with volume could trigger another run.
• Bearish Scenario: A rejection at $20 could lead to a panic where dip buyers may look for an entry.

This is a momentum and story-driven trade. Expect volatility. The quantum theme can move fast, both ways.

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 Inc. secured a massive NASA-backed contract win — and traders are taking notice.

The company announced it was awarded a $406,478 subcontract (through Analytical Mechanics Associates) to support NASA’s Langley Research Center. The company’s QCi system will develop a quantum computing technique to remove solar noise from space LIDAR data — a unique real-world application of its integrated photonics and quantum optics tech.

The contract runs through May 2026, giving QUBT a credible government-backed project — something traders love to latch onto in a speculative sector like quantum computing.

Since the April 30 NASA announcement, the stock has surged 220%*, and momentum continues to build as quantum names heat up again alongside Rigetti and other former runners.

Why I Like It

The NASA association is a major validation story, and QUBT is now approaching its 2024 highs. That’s a big psychological level for traders.

• Bullish Scenario: A breakout through 2024’s highs with strong volume could trigger a new speculative wave.
• Bearish Scenario: If it fails at the highs, expect a pullback to the $14 support area, where dip buyers may reload if quantum sector momentum stays strong.

This is a high-volatility and story-driven quantum sympathy play.

Read more: Is QUBT’s Sudden Stock Plunge a Red Flag?

I’d keep my size small, but the NASA headline gives it strong speculative appeal.

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).

D-Wave is proving why it’s one of the strongest names in the quantum sector right now.

It set new all-time highs on July 21 while other quantum stocks are still trying to rally.

The company is a pioneer in commercial quantum computing, and unlike many early-stage competitors, D-Wave is already delivering real-world solutions. It’s the world’s first commercial supplier of quantum computers and the only company developing both annealing and gate-model quantum systems.

With 99.9% uptime and over 200 million problems submitted to its Advantage and Advantage2™ systems, D-Wave’s technology is being actively used by 100+ organizations for optimization, AI, and research applications.

This makes it one of the few quantum companies generating real customer traction today — not just hype.

The market loves this — QBTS has already surged 430%* in 2025, and the breakout to new highs is a clear sign of strong momentum and sector leadership.

Why I Like It

This is the leader in the quantum trade right now. And leaders often run further than most expect.

• Bullish Scenario: A sustained hold above the new all-time high could trigger a momentum chase. I’d look for a breakout trade setup in that situation.
• Bearish Scenario: A failed breakout could mean a panic sell-off to the $14 support level. But I’d wait for a breakdown past $14 to look for a true panic dip buy.

This is the top momentum name in the quantum space. And sympathy runners like RGTI and QUBT could follow its lead.

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

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

Sealsq is one of the more speculative names in the semiconductor and quantum security space, but that’s exactly why traders keep it on watch.

The company specializes in digital security solutions for the emerging quantum era, offering FIPS-certified semiconductors, PKI services, and secure provisioning tech to protect digital identities.

Its products are used across smart energy, automotive, aerospace, telecom, and even luxury goods sectors, giving it a diverse customer base for future growth.

While not as fundamentally strong as some bigger players, LAES was one of the wildest runners of late 2024 — spiking 2,600%* at the peak of quantum hype.

Now, after months of cooling off, the stock is consolidating above $3, and momentum traders are watching closely for signs of another speculative wave, especially with the broader quantum sector heating up again.

Why I Like It

This is a former supernova penny stock, and history shows these can spark fast rallies when momentum rotates back into the stock.

• Bullish Scenario: A surge in volume and a push through $4.50 could trigger a quick spike, with room toward $7 as traders pile into quantum sympathy plays.
• Bearish Scenario: A breakdown under $3 support could lead to a fade lower. I generally don’t look to dip buy a stock after it starts to fade.

This is a sketchy penny stock. But with quantum momentum building, it’s worth watching for a potential squeeze.

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

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

IonQ is the big-cap leader in quantum computing, making it a key stock to watch for sector momentum.

Even if the high share price (above $40) keeps it off most penny stock traders’ watchlists …

Read more: Is IonQ (IONQ) Stock a Good Buy in 2025? Evaluating Growth and Price Forecast 

The company provides quantum systems and cloud-based access through AWS, Microsoft Azure, and Google Cloud, giving it real commercial adoption in industries like pharmaceuticals, EVs, and climate research.

Its partnership with AstraZeneca to develop quantum-accelerated computational chemistry workflows further highlights its potential in high-value, real-world applications.

Unlike many smaller quantum names, IonQ has a diversified business model:

• Quantum-safe networking
• Single-photon detectors
• Quantum key distribution systems
• Consulting services for algorithm development

The stock ripped 620%* from late 2024 into early 2025, but like the rest of the sector, it pulled back after Nvidia’s Jensen Huang said quantum computing is still years away.

That said, IONQ is bouncing back quickly, now pushing toward its January 2025 highs at $54 per share.

Why I Like It

This isn’t a trade for me — but as a sector leader, it’s critical for gauging momentum in the quantum space.

• Bullish Scenario: A confirmed breakout over $54 could ignite another sector-wide sympathy wave, with smaller names like RGTI, QUBT, and LAES potentially riding the hype.
• Bearish Scenario: A failure at $54 could cool off quantum enthusiasm short-term, putting pressure on sympathy runners.

If you trade quantum stocks, watch IONQ like a thermometer for sector sentiment. Leaders often move first, and the penny names follow.

*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.