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AI Penny Stocks to Watch: NVDA Earnings Edition

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Written by Timothy Sykes Fact-checked by Bryce Tuohey
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Nvidia (NASDAQ: NVDA) just crushed earnings expectations once again, sending shockwaves through the entire AI sector.

  • Q4 revenue: $39.3 billion (vs. $38.3 billion expected), up 78% year over year
  • Data center revenue: $35.6 billion, up 93% from last year
  • Guidance for next quarter: $43 billion, above Wall Street estimates
  • Blackwell AI chip sales hit $11 billion in their first quarter, the fastest product ramp in company history

Nvidia’s earnings are a bellwether for the entire AI trade—when NVDA moves, the rest of the AI sector follows. While some analysts worried about slowing margins, the overall results confirmed that demand for AI chips is still surging.

Check out my full AI penny stock watchlist here

Penny stocks tied to Nvidia have been some of the market’s biggest runners, with stocks like SoundHound AI Inc. (NASDAQ: SOUN) and Applied Digital Corp (NASDAQ: APLD) spiking hundreds of percent on NVDA-related news.

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.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Here are the top AI penny stocks to watch this week …

1. Applied Digital Corp (NASDAQ: APLD) — The AI Penny Stock That NVIDIA Is Still Invested In

APLD spiked 280%* after Nvidia announced an investment in the stock on September 5, 2024.

Unlike other AI penny stocks, Nvidia still holds shares in APLD, which keeps bullish sentiment alive.

  • Why traders are watching APLD:
    • Nvidia-backed AI stock—NVDA’s investment sent the price soaring in 2024
    • The stock hit $12 in February before pulling back—potential for another run
    • Still trading at a fraction of Nvidia’s valuation—cheap exposure to AI sector momentum

NVDA’s earnings confirm that AI infrastructure is still booming. If investors keep looking for smaller AI stocks with Nvidia exposure, APLD could be a major benefactor.

2. Firefly Neuroscience Inc (NASDAQ: AIFF) — The NVIDIA Partnership AI Biotech Penny Stock

AIFF spiked 450%* in three days after being accepted into an NVIDIA connect program on February 11.

This stock fits a pattern we’ve seen before—Nvidia partnerships have been explosive catalysts for penny stocks.

  • Why traders are watching AIFF:
    • Low float (3.2 million shares), which increases volatility
    • Past NVIDIA penny stock partnerships have led to massive spikes
    • The AI sector is still red-hot after NVDA’s earnings beat

This stock is proof that NVDA-related headlines can still move penny stocks fast. Traders should watch for any signs of renewed momentum.

More Breaking News

3. SoundHound AI Inc (NASDAQ: SOUN) — The AI Voice Stock That NVIDIA Sold Its Shares In

SOUN was one of the biggest AI penny stock winners of 2024, soaring 350%* after Nvidia took a stake.

But on February 14, we learned that Nvidia had sold its position, causing the stock to drop 30% in a single day.

  • Why traders are watching SOUN:
    • Despite the selloff, SOUN remains a cheap AI stock with strong past performance
    • NVDA’s earnings showed AI demand is still strong—potential sympathy play
    • Former runners can spike again if bullish sentiment returns

SOUN isn’t the Nvidia-backed stock it once was, but that doesn’t mean it’s dead. Past spikers can spike again.

* Past performance isn’t indicative of future results

Final Thoughts

Nvidia’s earnings confirmed what traders already suspected—AI stocks are still the hottest sector in the market.

  • NVDA’s record revenue and strong guidance suggest AI demand isn’t slowing.
  • AI penny stocks with Nvidia connections have a history of explosive moves.
  • APLD is still a Nvidia investment, AIFF just saw a major Nvidia partnership, and SOUN is a past spiker that could run again.

AI stocks move fast. Watch for volume surges and momentum shifts in these penny stocks—the next spike could be right around the corner.

This is a market tailor-made for traders who are prepared. AI penny stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

If you want to know what I’m looking for—check out my free webinar here!

Are you trading AI penny stocks after NVDA’s earnings? Drop a comment and let me know what you’re watching!

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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 (888) 878-3621 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”