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5 Top Tech Penny Stocks to Watch in 2023

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Written by Timothy Sykes
Updated 5/31/2023 13 min read

In one of the craziest markets ever, there’s one sector that’s stayed strong through it all — technology. And that means opportunities in tech penny stocks.

Think about it. During the pandemic, many states locked down. A lot of people moved to online shopping, food delivery, remote work, and distance learning…

It’s why a lot of tech stocks weren’t hurt too badly by the 2022 market crash. Some of the giants even made crazy gains.

But who wants to pay top dollar for a stock that might return 20%–30% in a year? If you have a small account, that either ties up your money or it’s not in your budget.

That’s why I don’t teach my students how to invest in big-name companies. There are ways to potentially make 20%–30% in a single day.

But to do that, you gotta find the hottest movers, usually in hot sectors … like technology.

So let’s talk about the top tech penny stocks to watch in 2023. I don’t recommend you invest long term in any of these — or even necessarily trade them…

For the rare penny stock that makes it, countless others fail. Instead, I want you to keep these on a watchlist or use it to start your own watchlist.

With the right news, these could provide some killer spikes to play. Let’s get into it!

What Exactly Are Technology Penny Stocks?

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This is a two-part question.

Let’s first define what a penny stock is…

(New to penny stocks? Start with my FREE guide here.)

Technically,  a “penny stock” is a stock that trades under $5 per share. When most people think of penny stocks, they think of the “Wolf of Wall Street” and OTC stocks

But there are also penny stocks on the Nasdaq and NYSE … A lot of them, actually.

Now let’s get into what a technology penny stock is…

Tech stocks as a whole refer to any type of stock involved in technology. Yes, I know that sounds self-explanatory. But I say that to tell you how widely varying these companies may be.

For example, some might provide software, while others develop semiconductors.

Now, let’s put two and two together: a tech penny stock is a stock under $5 in the technology sector. These are the types of stocks I’ll talk about today.

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Why You Should Consider Trading Tech Penny Stocks in 2023

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Why tech penny stocks?

When an entire sector is hot, penny stocks tend to follow the same momentum. Often, all these companies have to do is release a strong press release, then wait for a killer spike.

It’s all about building up the hype. In fact, it’s what I base a lot of my trades off of these days.

I use the Breaking News Chat feature on the StocksToTrade platform to get the hottest news that can move penny stocks. It’s better than any news scanner I’ve ever used.

When a sector’s hot, news catalysts become more important than ever. This is the perfect time to get the Breaking News Chat with StocksToTrade to help you develop your edge.

After I find the news for these tickers, I love to see that it’s in a hot sector — like technology. So long as the overall tech sector stays hot throughout the coming months, you should consider trading tech penny stocks in 2023.

Get your 14-day trial of Breaking News Chat and StocksToTrade now — only $17!

Top Tech Penny Stocks to Watch in 2023

These are my top tech penny stocks to watch in 2023:

  • NASDAQ: GSIT — GSI Technology, Inc. — The Tech Penny Stock on Short Squeeze Watch
  • NASDAQ: GCT — GigaCloud Technology Inc. — The Earnings Winner Tech Penny Stock
  • OTCPK: EPAZ — Epazz Inc. — The AI Drone Government Contract Hopeful Penny Stock
  • NASDAQ: GFAI — Guardforce AI Co., Ltd. — The Post-Offering Hot Sector AI Penny Stock Spiker
  • NASDAQ: CXAI — CXApp Inc. — The Low-Float Stock Supernova on its Next Leg Up

I’m breaking these tech penny stocks down by potential and then price.

Plus, I’m adding some bonus tech stocks to watch in 2023’s hottest tech sector.

Don’t trade these stocks before they make a move. But keep these stocks on your watchlist in case they run in the near future.

Get my FREE weekly stock watchlist here.

GSI Technology, Inc. (NASDAQ: GSIT) — The Tech Penny Stock on Short Squeeze Watch

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My first tech penny stock pick is GSI Technology, Inc. (NASDAQ: GSIT).

Patterns are key in stocks.

This stock hasn’t done anything significant to set it off from what I can see.

But I put GSIT on a short squeeze watch because it’s showing all the classic signs….

Short squeezes occur when overconfident short sellers short a stock and don’t cut their losses quickly. As the price rises higher, they’re forced to exit — contributing to the buying that’s pressuring the stock from the long side!

This is bad for undisciplined shorts. They either have to buy the stocks at a higher price to get out of the trade or try to wait out the spike in the hopes the price won’t go TOO high…

Of course, their broker will force them into a trade if it does.

Why I Like It

In mid-May, we saw GSIT spike over 340%.

Prices haven’t broken past resistance levels since the spike, but the support level is holding up.

I made $6,857 on two long-ago trades of GSIT (click the link to see my individual trades). I’m watching to see if I can add to my tally.

GigaCloud Technology Inc. (NASDAQ: GCT) — The Earnings Winner Tech Penny Stock

My second tech penny stock pick is GigaCloud Technology Inc. (NASDAQ: GCT).

GCT is a furniture and home goods wholesaling platform. Despite its decent earnings, it’s got a poor growth outlook.

The stock spiked 190% on May 24th but has since continued a downward trend.

Why I Like It

Earnings winners can be great catalysts for profits.

It’s simple — when companies announce earnings, the news can throw stocks into a frenzy.

Remember to look at the patterns AND the news catalyst before you make a move… They might just give a stock a short-term lift like happened with GCT.

Of course, traders can still profit off of downward trends. For example, just take a look at the small $160 gain I made dip-buying GCT (starting stakes $10,480).

Top Hot Tech Penny Stock Under $1

The stocks above are generally in the higher-end price range of penny stocks.

But there’s another great tech penny stock that I’m watching this year…

Epazz Inc. (OTCPK: EPAZ) — The AI Drone Government Contract Hopeful Penny Stock

My third tech penny stock pick is Epazz Inc. (OTCPK: EPAZ).

This one’s a no-brainer. With the AI boom, EPAZ is working on an AI drone that’s attracting big investors and the U.S. military.

The stock spiked 87% on May 9. Its price has pulled back a bit since, but it’s still showing signs of life.

Why I Like It

Three words: New, news, news. (In penny stock land, we call it “pumps.”)

AI technology is plastered on every virtual billboard, making it a firecracker of a sector.

I’ve earned $2,991 with EPAZ (click the link to see my individual trades).

I’ll wait for the next spike and play it extremely SAFE.

Are AI Stocks Considered Tech Stocks?

Let’s go back to what I talked about earlier…

Any stock with a primary business function in the technology field is a tech stock. Since AI is a type of technology, the companies that work in AI are also considered tech stocks.

AI is a popular upcoming technology. And I know a lot of traders and investors are looking for the next hottest AI tech penny stock. When they run, that can mean volume. Also, a lot of the “best” AI stocks usually aren’t penny stocks, so I found two hot AI penny stocks to watch in 2023.

AI Penny Stocks to Watch in 2023

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These AI stocks might not be in penny stock land halfway through 2023…

But in terms of the crazy moves they make, they fit my penny stock patterns to a T.

Guardforce AI Co., Ltd. (NASDAQ: GFAI) — The Post-Offering Hot Sector AI Penny Stock Spiker

My fourth tech penny stock pick is Guardforce AI Co., Ltd. (NASDAQ: GFAI).

These AI companies are one hot sector. Add in the volatility of a penny stock and you’ve got yourself a decent watchlist pick in the AI-assisted logistics company GFAI.

GFAI is a post-offering spiker, meaning it just diluted its float with new stocks, making each individual stock worth less. The offering killed its big April rally, but it’s since found stability just above $5.

Why I Like It

I’ve made $2,267 in total profits on GFAI (click the link for individual trades).

Look at GFAI’s chart. This stock can run on a dime.

Somehow GFAI has become one of the sector leaders. That’s because of its spikeability, and the fact that it’s made any money at all on AI… Its Q4 2022 earnings report showed a 245% increase in AI revenue.

AI stocks are a volcano waiting to erupt at the first sign of news…

Just in 2023 alone, we’ve seen a handful of spikes — the biggest was a 660% spike in April.

CXApp Inc. (NASDAQ: CXAI) — The Low-Float Stock Supernova on its Next Leg Up

My fifth tech penny stock pick is CXApp Inc. (NASDAQ: CXAI).

Talk about big spikes. 

CXAI spiked by over 1,400% in April.

This software company hopped on the AI bandwagon in a BIG way…

With only 1.4 million shares, CXAI is a low-float contender for the top of my AI watchlist.

Why I Like It

The stock had a massive dip in mid-March before spiking in mid-April. Then it pulled back…

It hung around, consolidating. When the right conditions came around again in late May, it spiked again.

I’m not going to chase. Instead I’ll wait for the inevitable panic, and potentially dip buy it for a 5–10% gain.

Conclusion

Tim Sykes tosses his book An American Hedge Fund in the Alps
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Remember, I don’t invest in any of these companies … Instead, I trade penny stocks with a strategy. A lot of newbies want the hottest picks to blindly invest in a company.

But that’s not what I teach. I made this list to help you build your own watchlist. This list is not a recommendation to buy. I never recommend you follow anyone’s alerts. Not even mine. All my alerts and watchlists are to help you learn the process.

Blindly following alerts is a surefire way to blow up your trading account.

But if you made it all the way through this article and took away the key concepts like building a watchlist and looking for sympathy plays, congratulate yourself.

Even if you didn’t take away the key concepts, you made it farther than most. That shows a level of dedication to learning.

Those are the types of students I want in my Trading Challenge — those who are dedicated to learning. I don’t care how much or little you know about stocks…

The only thing I ask is that you’re dedicated, disciplined, and driven. If you’re not, you won’t make it into the Challenge. Think you have what it takes? Consider applying to my Trading Challenge.

Tell me what you think … How hot do you think the AI market will be? Let me know in the comments below!


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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (205) 851-0506 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”