10 Top AI Penny Stocks To Watch for September 2024

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 Stocks To Watch

My top AI stock picks for September — 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 …

Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top AI stocks!

10 Best AI Stocks for September 2024

My top AI penny stock picks are:

• NASDAQ: GDC — GD Culture Group Ltd — The Video Production AI Penny Stock on Jack’s Watchlist
• NASDAQ: SERV — Serve Robotics Inc — The NVIDIA Partnership Robotics Penny Stock
• NASDAQ: RR — Richtech Robotics Inc — The SERV Sympathy Play Penny Stock That’s Taken on Momentum of its Own
• NASDAQ: CXAI — CXApp Inc — The Google Cloud Partnership AI Penny Stock
• NASDAQ: AIMD — Ainos Inc — The AI Nose Penny Stock
• NYSE: BBAI — BigBear.ai Holdings Inc — The Government Contract AI Penny Stock
• NASDAQ: PHUN — Phunware Inc — The Trump Catalyst AI Penny Stock
• NASDAQ: WLDS — Wearable Devices Ltd — The Extended Reality Penny Stock
• NASDAQ: LIDR — Aeye Inc — The Autonomous Vehicle AI Stock
• NASDAQ: AXTI — AXT Inc — The Earnings Winner With Good Consolidation

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 Aeye Inc (NASDAQ: LIDR), Serve Robotics Inc (NASDAQ: SERV), and GD Culture Group Ltd (NASDAQ: GDC).

• 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. GD Culture Group Ltd (NASDAQ: GDC) — The Video Production AI Penny Stock on Jack’s Watchlist

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My first AI penny stock pick is GD Culture Group Ltd (NASDAQ: GDC).

This stock is one of Jack Kellogg’s top stocks right now …

Jack is one of my most successful students. To date he’s profited $13.1 million from the market using my specific framework.

It dwarfs my own profits of $7.7 million. And I’ve been trading since the dot com boom, over two decades ago … Jack started in 2017.

That shows the importance of having a mentor. I had to figure this out on my own and it stunted my growth.

Jack learned my process with a mentor, followed the framework, and now he’s killing it in the market.

Here’s what Jack said about GDC on August 25:

I had to redact part of Jack’s trade plan. That information is reserved for traders in our community …

This is where Jack posts his upcoming trade plans.

Why I Like It

The stock surged 600%* starting August 21 after the company announced its new TikTok account to share the newest AI updates and trends in the market.

And on August 23 the company announced its SyncWaveX product that uses AI to seamlessly line up audio and visuals. For example, syncing lip movements in videos with proper audio.

Plus, StocksToTrade shows that the float is only 9 million shares. Anything below 10 million shares is considered “low float.” The low supply of shares helps prices spike higher when demand increases.

Essentially, this is a highly volatile AI stock that’s consolidating after a 600%* spike … This thing isn’t done moving.

2. Serve Robotics Inc (NASDAQ: SERV) — The NVIDIA Partnership Robotics Penny Stock

My second AI penny stock pick is Serve Robotics Inc (NASDAQ: SERV).

On Friday, August 19, we learned that NVIDIA Corporation (NASDAQ: NVDA) bought shares of SERV.

Over the next few weeks this stock spiked 810%*.

I’ve traded this runner multiple times since we learned of the NVDA stake. I included an example below:

Why I Like It

SERV works in the automated-delivery robot sector. It works directly with AI, and the AI industry is red hot in 2024.

The price sank after the initial spike. But it hasn’t given back all of its gains.

The chart actually shows a decent consolidation around $10. We could see a bounce from this level.

There’s also the possibility for a panic dip buy if the price doesn’t rally and instead falls lower.

With my trading framework, there are opportunities to profit on both sides of the spike!

3. Richtech Robotics Inc (NASDAQ: RR) — The SERV Sympathy Play Penny Stock That’s Taken on Momentum of its Own

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

Whenever there’s a big runner in the market, like SERV after its NVDA stake announcement, we can see ripples of volatility affect similar stocks.

RR is another AI company. It works to create automated cleaning robots. For example, automated cleaning of medical labs.

RR was also trading at a similar price level as SERV when the latter started spiking.

Why I Like It

The RR sympathy spike on Jul 19 didn’t last long. Especially when compared to SERV’s multi-week move.

You can see a chart of the RR move below, every candle represents 15 trading minutes:

But in recent days, toward the end of August, this stock started to gain its own momentum.

Starting August 15 it spiked 330%*.

It’s a low-float AI stock, former spiker, in a red-hot AI market … That makes it a no-brainer watchlist stock.

Keep an eye on the most recent price action!

4. CXApp Inc (NASDAQ: CXAI) — The Google Cloud Partnership AI Penny Stock

My fourth AI penny stock pick is CXApp Inc (NASDAQ: CXAI).

On August 12 during after hours, CXAI announced a multi-year AI agreement worth multi-millions of dollars with Alphabet Inc. (NASDAQ: GOOG).

A multi-million dollar deal with a famous company like Google … That’s a perfect catalyst. The stock spiked 150%* by the next day.

But prices sank after the initial spike …

Why I Like It

This tiny penny stock signed a multi-million dollar deal with Google. And the deal spans multiple years.

It’s likely that we will see the effects of this partnership in the next earnings report. Plus, StocksToTrade shows that the float is only 1.6 million shares.

CXAI is a ticking time bomb that’s waiting for its next hot catalyst.

5. Ainos Inc (NASDAQ: AIMD) — The AI Nose Penny Stock

My fifth AI penny stock pick is Ainos Inc (NASDAQ: AIMD).

This company announced a breakthrough in its AI Nose product on August 19.

The AI Nose can be applied in manufacturing settings to detect harmful gas leaks and improve worker safety.

The price spiked 40% in August … It’s not the biggest move that we’ve seen from an AI stock recently. But I still have it on my watchlist.

Why I Like It

The company’s unveiling of the AI Nose product was also accompanied by an intent to expand into the industrial sector.

This is a product that’s grown in efficiency and only now is starting to push toward a larger customer base.

Already the chart shows decent consolidation after the spike in August, and StocksToTrade shows that the float is only 4.4 million shares.

Similar to the other low-float AI runners on this list, all it needs is another hot catalyst to push the price higher.

6. BigBear.ai Holdings Inc (NYSE: BBAI) — The Government Contract AI Penny Stock

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

On August 20 during after hours, BBAI announced a new 10 year contract worth $2.4 billion with the U.S. Federal Aviation Administration to provide IT solutions.

Business partnerships with the U.S. government are BIG catalysts for penny stocks.

The price only spiked 40%, likely due to the larger float. StocksToTrade shows it has 245 million shares outstanding …

Why I Like It

Despite the larger float count, I’m still watching this stock.

The government-contract catalyst is intriguing. And the chart shows solid consolidation around the most recent spike levels.

Stocks that consolidate have the opportunity to surge higher. And if BBAI pushes toward the breakout level around $2, I’m ready to make a trade.

Not sure how to use my patterns to trade these runners?

Enter the ticker you’re watching into my AI trading bot.

This system follows my exact framework. And new traders can use it to build smart entries on the hottest stocks.

7. Phunware Inc (NASDAQ: PHUN) — The Trump Catalyst AI Penny Stock

My seventh AI penny stock pick is Phunware Inc (NASDAQ: PHUN).

PHUN is one of the stocks that’s closely tied to former President Donald Trump. Another example is his stock, Trump Media & Technology Group Corp. (NASDAQ: DJT).

And considering the imminent U.S. election, it’s possible that we see more volatility from these tickers.

PHUN spiked 2,100%* in 2021 in tandem with Trump Media & Technology Group Corp (NASDAQ: DJT) as Trump threw himself back into the business world…

Ultimately it took the path of all crappy penny stocks and collapsed. But the volatility was still profitable for savvy traders.

Why I Like It

Trump doesn’t need to win the presidency to cause a spike in PHUN’s stock.

The price already spiked 540%* in 2024 thanks to election volatility. And some of the most volatile months of the election cycle are still ahead of us.

I mentioned that there were a few stocks related to Trump … I chose PHUN for this watchlist because it’s closely related to tech and AI. It’s a software company that helps businesses monetize their mobile audiences.

Plus, StocksToTrade shows there are only 11 million shares in the float. That points toward future volatility.

8. Wearable Devices Ltd (NASDAQ: WLDS) — The Extended Reality Penny Stock

My eighth AI penny stock pick is Wearable Devices Ltd (NASDAQ: WLDS).

This company works to create extended reality devices, for example, a device that allows users to control technology using subtle finger movements.

And the stock has a HUGE history of spiking.

In 2023, when AI first started to boom, WLDS spiked 460%*. There’s a chart of the move below:

Why I Like It

Past spikers can spike again.

We’ve already seen this stock launch higher over multiple days. I’m looking for another short term spike in 2024.

StocksToTrade shows that the float is only 12 million shares. That’s close enough to our goal of 10 million shares or fewer.

It just needs a hot catalyst to push the price higher.

9. Aeye Inc (NASDAQ: LIDR) — The Autonomous Vehicle AI Stock

My ninth AI penny stock pick is Aeye Inc (NASDAQ: LIDR).

In May of this year, LIDR spiked 320%* after announcing a partnership with LITEON  Technology to create a new customer channel and industrialization partnerships.

LIDR works to create solutions for autonomous vehicle systems using AI.

The autonomous vehicle sector is still growing. And breakthroughs in AI make a final product more likely.

See the headlines below from August:

Why I Like It

I’m not convinced that LIDR will solve the issue of autonomous transportation …

But, the stock is in a hot sector and announcing new partnerships.

Couple that with the fact that StocksToTrade only shows 7 million shares in the float … LIDR is poised to shoot higher any day.

10. AXT Inc (NASDAQ: AXTI) — The Former Earnings Winner With Good Consolidation

My tenth AI penny stock pick is AXT Inc (NASDAQ: AXTI).

In February of 2024, this stock spiked 130%*.

I kept it on my watchlist for a potential follow-up spike.

And sure enough, on May 2, AXTI announced bullish quarterly earnings …

• Expected earnings per share of -$0.08 and reported -$0.03. Not as bad as expected.
• Expected revenue of $21.7 million and reported $22.6. Better than expected.

Prices ran 35% as a result of the earnings announcement …

But when it announced earnings for the second quarter of 2024 on August 1, the price took a dive. Even though it reported revenue of $27.9 million, which was a growth from the first quarter of 2024.

This is why we don’t hold and hope on these stocks. Instead, we trade the short term volatility.

Why I Like It

Despite the pullback after the August 1 earnings report, this is still a volatile stock.

The company works to produce semiconductors for use in microchip technology. This is a sector that’s truly at the heart of the AI market boom.

It’s possible that we see more volatility from the next earnings report on October 30 …

And until then, in September, any number of catalysts could cause the price to spike. Get ready for more volatility!

*Past performance does not indicate future results

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.

No more navigating clunky software or hopping between multiple windows to check on the news — StocksToTrade has everything you need!

StocksToTrade has changed the way I trade. Sign up for a 14-day trial today and see how it can change your trading — it’s only $7!

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.

*Past performance does not indicate future results