Artificial Intelligence Penny Stocks

Penny stock trading is all about hot sectors — and artificial intelligence has the potential to become the hottest sector there is.

Most of the exciting AI developments are happening in higher priced stocks. Tesla Inc. (NASDAQ: TSLA) relies on AI for its self-driving technology. Microsoft Corp. (NASDAQ: MSFT) has poured billions into its partnership with OpenAI, the developers of the second AI chatbot to pass the Turing test — fooling many into thinking its responses are human.

What was the first chatbot to pass the Turing test? LaMDA AI, developed by Alphabet Inc. (NASDAQ: GOOGL).

These world-changing AI tools are a departure from the traditional tech stock story. They take billions of dollars to develop to the point where they’re more than a gimmick.

But that isn’t a problem for the penny stocks on this watchlist. As usual in penny stock land, all you need is a dollar and a press release…

Read on to learn more about my top penny stocks in artificial intelligence!

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.

Advantages of Trading AI Stocks

One of the greatest advantages of trading artificial intelligence stocks is their newsworthiness. In 2022 alone, we’ve heard of AI possibly becoming sentient, AI-generated art sold on NFT platforms like Crypto.com, and AI-assisted voice cloning.

Penny stocks are capitalizing on this buzz and getting the market’s inexhaustible supply of newbies excited about their own AI technologies — which will likely never materialize.

Since too many newbies won't study the @30DayBoot or read the @completepenny or review the 1,000+ live trading/Q&A webinars archived for https://t.co/occ8wKmlgm hopefully these charts can help you learn how EVERY penny stock pump works, it's not luck, STUDY HISTORY HAAAAAAAAAARD! pic.twitter.com/DxNUCnq08k

— Timothy Sykes (@timothysykes) March 1, 2021

As a smart trader, you don’t have to believe all the hype surrounding the artificial intelligence space. I never buy into the hype — I just trade on it.

I want you to watch these stocks, but only trade them with a plan. If you go for small gains and cut your losses quickly, you can do quite well.

Apply for my Trading Challenge today and learn how to trade artificial intelligence 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.

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.

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.

Top AI Penny Stocks

My top AI penny stock picks are:

• (NASDAQ: IDEX) — Ideanomics Inc. — The Every-Sector Penny Stock
• (OTCPK: TPTW) — TPT Global Tech — The Sub-Penny Breakout Stock
• (NASDAQ: COMS) — COMSovereign Holding Corp — The Not-Yet-Delisted Penny Stock
• (NASDAQ: DUOT) — Duos Technologies Group Inc. — The Post-Hype Penny Stock
• (OTCPK: AITX) — Artificial Intelligence Technology Solutions Inc. — The Textbook Penny Stock Pump
• (NASDAQ: MARK)  — Remark Holdings Inc. — The Reverse Split Penny Stock
• (OTCPK: TSPG) — TGI Solar Power Group — The Breaking News Play Penny Stock
• (NASDAQ: HLBZ) — Helbiz Inc. — The War-on-Shorting Penny Stock
• (NASDAQ: INOD) — Innodata Inc — The Former Runner Penny Stock
• (NYSE: PLTR) — Palantir Technologies Inc. — The Sector Leader Penny 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!

1. Ideanomics Inc. (NASDAQ: IDEX) — The Every-Sector Penny Stock

My first AI penny stock pick is Ideanomics Inc. (NASDAQ: IDEX).

Whenever you have a smoking hot sector like AI, chances are you’ll also have a stock like IDEX…

They probably have a division set to cook up press releases. It’s way easier than having fully-functioning business divisions in all of the business lines they claim to be active in. Over the past few years, IDEX has variously claimed to specialize in farm equipment, real estate, EV infrastructure, wireless charging, and street sweeper manufacturing.

Why I Like It

IDEX may be a disaster of a business, with a stock that’s lost 96% of its value in the past two years…

But that isn’t the point with penny stocks. You should never consider investing in them — only trading them within the confines of a tight trading plan, and taking profits when you hit your trade goals.

It has been on Step #7 — ‘The Long Kiss Goodnight’ — of my 7-step pennystocking framework for a looooong time:

Retweet/favorite this if you want a video lesson on my $LWLG $DPLS $RGBP $EEENF trades in the last 2 trading days, soooo many lessons from these https://t.co/46W8tDB2QL pattern plays, it's actually pretty insane! If I make a video, do you promise to watch/study it?!? YOU TELL ME!

— Timothy Sykes (@timothysykes) July 6, 2021

But despite its completely hopeless chart, it can still occasionally trade 40 million shares. And do you know what prompted its latest volume spike?

An AI-powered partnership with Google Cloud.

This doesn’t help with the problem of IDEX’s shrinking sales — and clearly, traders have soured on IDEX. But if they get back in the market’s good graces, news like this can really help their stock spike.

2. TPT Global Tech (OTCPK: TPTW) — The Sub-Penny Breakout Stock

My second AI penny stock pick is TPT Global Tech (OTCPK: TPTW).

TPTW is another sector-agnostic penny stock — not an unusual thing in the sketchy world of penny stocks. It doesn’t even seem to have an overall vision for its business lines.

This technology/medical tech/telecom/media/crypto company is basically in the press release business, and its latest gimmick is AI-related…

Throughout 2022, TPTW was pumping its “smart city” plans for Tuskegee and Birmingham, Alabama. One was supposed to be funded through a new crypto coin, feature a “high-tech ultra-performance robotic manufacturing facility,” and open in 2023.

TPTW’s November pump stalled, after a 500% gain. I blame the promoters.

Why are promos like $COSM $CLNV $TPTW all crashing despite the solid $DIA $SPY $QQQ market today? One word: FRANK. He's the most incompetent promoter I've seen in years, next to this guy https://t.co/A3cHHNTxWJ who sadly isn't around anymore. Learn how corrupt these promos are!

— Timothy Sykes (@timothysykes) November 30, 2022

Why I Like It

TPTW has a permanent spot on my crappy penny stock watchlist. After all, I’ve made nearly $21,000 in total profits trading it (click the link to see my individual trades).

Its November run reminded me of the runs it had in 2020, when I made most of my trading totals on this stock. This recent run was kickstarted by 3 consecutive days of 100 million shares traded…

In the days leading up to the run, TPTW traded in the low millions.

And then — nothing… until now.

On January 13, it traded 100 million shares on no news. In the two weeks before, its average volume rose to nearly 30 million shares per day.

I sense a new pump brewing in TPTW. With meme stocks hitting again, it could be coming at the right time.

3. COMSovereign Holding Corp (NASDAQ: COMS) — The Not-Yet-Delisted Penny Stock

My third AI penny stock pick is COMSovereign Holding Corp (NASDAQ: COMS).

COMS is a communication technology firm which specializes in AI-enabled 5G tech. Its 2021 acquisition of RVision gave it AI-powered claims to the defense and smart cities sectors…

And yet its recent run was all about management.

In late November and early December, COMS surged to a 200% gain. The catalyst? There was a change in management, and then Nasdaq decided to put off COMS’ delisting until February 2023.

That latter piece of news led to 200 million shares being traded from 9 a.m. to 10 a.m. Eastern — all to celebrate a stock that will almost definitely do a reverse split in the future.

Why I Like It

During its latest run, COMS had 4 days with over 200 million shares traded. That isn’t as impressive as it would be for a higher priced stock, but it isn’t nothing.

Look back to mid-October, where a volume spike sent COMS’ share price up 300% in a single day.

Don’t believe the hype on this one. In a longer timeframe, this stock is well into Step #7 of my framework…

But as long as COMS is a threat to have 100% spikes, I’ll be watching.

4. Duos Technologies Group Inc. (NASDAQ: DUOT) — The Post-Hype Penny Stock

My fourth AI penny stock pick is Duos Technologies Group Inc. (NASDAQ: DUOT).

DUOT was on my 2021 AI stock watchlist. It spent most of that year above penny stock levels, and it looked like a threat to break out…

From June 2021 to the end of 2022, DUOT lost more than 80% of its value. Its railcar, truck, and aircraft inspection machines are in the supply chain support sector. The enthusiasm of the 2021 market wasn’t enough to get the stock through its balance sheet issues.

Why I Like It

Since the start of 2023, DUOT stock has enjoyed a steady run up 50%. It’s a thinly traded stock, but its average volume has grown. That’s enough to move a 5-million-share low float stock like DUOT.

Part of this volume bump has come from institutional investors like Vanguard. Along with several hedge funds, they’ve increased their DUOT stake.

DUOT exceeded projections for its November earnings report. Insiders bought shares above market value. One prominent analyst initiated coverage of the stock.

DUOT’s AI-powered rail car inspection business isn’t the sexiest AI application, but it fills a need. The stock seems to have gotten past the dumb hype of 2021 and found some staying power.

5. Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX) — The Textbook Penny Stock Pump

My fifth AI penny stock pick is Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX).

Why am I watching this trashy stock with a 5 billion share float? It isn’t because I’ve started buying into their breathless press releases — like about how their school weapon detection systems will revolutionize school safety…

To all $TSNP $AITX $ENZC $OZSC $SIRC $ALPP brainwashed by promoters, please use @sttbreakingnews to see the pumping realtime & read https://t.co/QTYT7tytOA to see this ain't my first rodeo, newbies always hate my warnings, then they apologize only AFTER the pumps collapse…sad!

— Timothy Sykes (@timothysykes) February 7, 2021

It’s because I understand the pumpers’ playbook, and have seen it play out again and again with AITX.

Because I don’t believe the hype, I’ve been able to safely trade this stock for $32k in total profits (click the link to see my individual trades). 

I didn’t get sucked into the hype when this stock had a multi-month 22,000% run into its meme stock high in February 2021. Because I traded safely and conservatively even when it was one of the biggest supernovas I’d ever seen…

I didn’t blow up my account when it inevitably gave back ALL of its gains.

Why I Like It

Check out my biggest trade in AITX, a $5,314 win (starting stake $74,718). The percentage gain was only 7%.

When a stock has the range that AITX does, it’s easy to take the meat of the move. Unlike most newbies, who live and die by the chart, I only trade the safest patterns, like the panic dip buy:

I’ve used this pattern many times on AITX. When it hasn’t worked, I’ve cut my losses quickly. When it has worked, I’ve made some decent profits.

I love promoted stocks like AITX, because these shady promoters never want the stock price to collapse before the pump has run its course. So they’ll prop up its dips. I set my trading plan up to target small gains from the likely bounce.

Since the calendar turned to 2023, AITX has been running on increased volume. I’m watching this stock because I know that greedy promoters are too.

6. Remark Holdings Inc. (NASDAQ: MARK) — The Reverse Split Penny Stock

My sixth AI penny stock pick is Remark Holdings Inc. (NASDAQ: MARK).

I’ve made $14,831 in total profits trading MARK (click the link to see my individual trades). It made my 2021 AI stock watchlist. But that was a loooong time ago.

Since the last time I traded MART, it became one of 2021’s AI stock stars. It installed AI-powered scanning systems in high-speed trains and public places — making for some of the most useful applications on the market.

Its chart topped in February 2021, along with other meme stock pumps. Since then, it’s been on a steady decline.

Press releases about its global leadership in AI video analytics were replaced by stories about a future Nasdaq delisting. With a recent 1-for-10 reverse split, MARK is safe — for now.

Why I Like It

MARK’s space on this watchlist has nothing to do with its reverse split. Reverse splits aren’t necessarily a good thing…

In fact, they can be pretty bad. With a sketchy stock like MARK, a public share offering could be right around the corner.

So why do I like this stock? It isn’t too complicated.

Former runners can run again.

Once upon a time, MARK pulled off a first-class pump that fit my trading framework perfectly. If it wants to do a toxic financing in the future, it will have to drum up some gains first.

7. TGI Solar Power Group (OTCPK: TSPG) — The Breaking News Play Penny Stock

My seventh AI stock pick is TGI Solar Power Group (OTCPK:TSPG).

I need to take a minute to shout out Breaking News Chat. It’s a StocksToTrade alert service — and my secret weapon.

When TSPG spiked on the morning of January 23, the two analysts that run Breaking News Chat caught it. Actually they caught it beforehand…

Their quick read allowed me the time to set up a trade before the market open. I saw TSPG’s spike at the open, and then traded it as it looked ready to break out…

It didn’t, and I took a small gain of $316 (starting stake $2,488). That was my best trade on a slow day — and I was in and out before 10 a.m. Eastern!

I absolutely recommend you try a 14-day Breaking News Chat trial — only $17!

Why I Like It

The Breaking News guys caught one more TSPG nugget at the end of the day, when its share price had collapsed below the day’s open…

There’s nothing quite like waging war against short sellers to tell me the promoters are running the asylum. There’s an anti-short selling trend happening in the market, and TSPG is eyeing it like a life preserver.

In fact, the catalyst of my other January 23 trade — a $232 day trade (starting stake $3,022) of Verb Technology Company Inc. (NASDAQ: VERB) — was a piece of anti-short PR. It started with a line that should set off alarm bells in any smart traders’ head:

“Today we join the fight begun by companies like Genius Group, Helbiz and Creatd, among others for greater integrity in the capital markets.”

Despite citing 3 of the scammiest stocks on the market, newbies actually bought in. By the end of the day, VERB had done a new share offering at its inflated price.

Will this chain of events happen for TSPG? I don’t know, but something tells me they wouldn’t mind.

8. Helbiz Inc. (NASDAQ: HLBZ) — The War-on-Shorting Penny Stock

My eighth AI penny stock pick is Helbiz Inc. (NASDAQ: HLBZ).

In 2021, HLBZ was a meme stock that briefly broke $40. It’s been a long way down from there, to the sub-$1 level it currently occupies.

After traders realized that its e-bike business wasn’t about to become the next Uber, the stock tanked. HLBZ didn’t need “illegal short sellers” to do it in, like it’s been alleging…

Realize that terrible companies like $VERB $COSM $HLBZ $GNS $HMBL $CYDY inspire legal short sellers galore due to their incompetence/scumbag actions. By all means let's ride their re-pumps up, but never for one second believe in them as they'll just screw you like their always do

— Timothy Sykes (@timothysykes) January 23, 2023

But this ridiculous trend earned HLBZ a spot on the watchlist I send out every day to my Trading Challenge students. Over three days, HLBZ traded more than 1.7 billion shares and spiked by 350%.

Why I Like It

Why is it on my AI watchlist? Its e-scooters have AI-powered safety detection protocols built in, which scan for helmets and can automatically reduce speed.

The second reason that it’s on this watchlist is because of what HLBZ is… one of the sketchiest penny stocks on the Nasdaq. If it has any involvement with a hot sector like AI, chances are that press releases will follow.

And press releases are the business model for a stock like this.

9. Innodata Inc (NASDAQ: INOD) — The Former Runner Penny Stock

My ninth AI penny stock pick is Innodata Inc (NASDAQ: INOD).

Like most repeat stocks from my last AI watchlist, INOD is down from its 2021 highs. It has an interesting business model — the kind that no one understands the value of.

INOD is a data services company in the AI and machine learning sector. One of its services is to translate privacy-protected medical data into data that can be used to educate AI systems.

When it was on the 1,200% multi-month run that spanned 2020 and 2021, the market thought it might become a billion-dollar company. When it fell back to penny stock land in 2022, expectations adjusted.

Why I Like It

Just look at the chart.

INOD’s 2022 chart looks bad to most investors. To traders like us, it contains some opportunities.

It’s a thinly-traded stock with a medium-sized float. But on days like March 17, 2022, when positive earnings came out, it traded about 20 times its average volume.

That’s still less than a million shares traded, which tells me it doesn’t take much volume to move this stock. This volume spiked INOD’s price by about 40% — awesome when you consider that INOD shares went from the $5s to the $7s that day.

INOD’s runs have all been built on small volume spikes. The chart has looked good so far in 2023, which could bring more volume in.

10. Palantir Technologies Inc. (NYSE: PLTR) — The Sector Leader Penny Stock

My tenth AI penny stock pick is Palantir Technologies Inc. (NYSE: PLTR).

Palatir’s 2022 is a cautionary tale of risk management.

LOL at those w/no risk management, Cathie Wood of $ARKK hyping tech while getting annihilated on $ZM $PLTR $COIN $TDOC newbies who #HODL on #Bitcoin #ethereum #nftart & so many more #hodling in a #marketcrash are just WASTEFUL. Remember https://t.co/0HhPp6UcT3 CUT LOSSES QUICKLY!

— Timothy Sykes (@timothysykes) June 16, 2022

It IPO’d into one of the biggest bubble markets I’ve ever seen. At its peak a few months later, it was trading 50 million shares on a regular basis as it trended into the $30s…

As an AI sector leader in the money-printing defense industry, Palantir was one of the 2021 bull market’s tech darlings. And then the market crashed. Stocks trading at a premium like PLTR felt the brunt of the correction.

Why I Like It

The great thing about trading is you don’t need to stick with a stock’s lows to trade its highs. PLTR investors may have lost a ton since its 2021 peak…

But if you trade scared like me, you could have mitigated your losses and taken advantage of PLTR’s runs.

The 80% gains it racked up during its summer 2022 run pale in comparison to its 2021 potential. But they show that the market hasn’t forgotten this stock.

It has a float of 1.7 billion. It takes big volume to move this stock. When AI becomes a hot sector again, real volume has a chance of returning.

Key Takeaways

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 artificial intelligence stocks on your watchlist? Let me know in the comments!