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3 AI Penny Stocks Ready to Soar After the DeepSeek News

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

The AI sector is undergoing a major shakeup after the DeepSeek news sent shockwaves through the market. As China’s newest open-source AI model gains traction, it’s causing volatility in both major tech stocks and smaller AI-related penny stocks.

These AI stocks have a history of explosive moves, and traders should be prepared for more opportunities in the coming weeks.

Want to stay ahead? Sign up for my NO-COST weekly watchlist and get exclusive insights into the market’s biggest opportunities!

Top AI Penny Stock Picks for February 2025

My top AI and quantum computing penny stock picks for February 2025 are:

  • NASDAQ: HOLO — MicroCloud Hologram Inc — The Hot Sector Bandwagon Jumper With the DeepSeek Press Release
  • NASDAQ: JG — Aurora Mobile Ltd — The Chinese DeepSeek Play
  • NASDAQ: SOUN — SoundHound AI Inc — The AI Spiker Doing an Offering in the Fallout of DeepSeek

Check out my main AI and quantum computing watchlist here for my entire January watchlist!

Stock TickerCompany2024 Performance
NASDAQ: HOLOMicroCloud Hologram Inc+ 73.28%
NASDAQ: JGAurora Mobile Ltd- 12.55%
NASDAQ: SOUNSoundHound AI Inc- 30.53%

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.

Let’s get to the picks…

1. MicroCloud Hologram Inc (NASDAQ: HOLO) — The Hot Sector Bandwagon Jumper With the DeepSeek Press Release

HOLO is capitalizing on the DeepSeek hype, spiking 60%* after announcing an AI integration with the Chinese model.

On January 27, at 8 A.M. Eastern, HOLO issued a press release stating that it would incorporate DeepSeek AI into its holographic applications. This led to an immediate price surge, as traders jumped on the news-driven momentum.

This is a classic low-float penny stock move—attaching itself to the hottest sector news to generate interest. We’ve seen similar strategies in the past, when small AI stocks rode the NVIDIA (NASDAQ: NVDA) wave by announcing partnerships or AI-related expansions.

Smart traders knew to trade the hype, not believe in it.

Why It’s Interesting

  • AI stocks are still leading the market in 2025, with DeepSeek now emerging as the latest sector catalyst.
  • HOLO is a low-float stock, meaning it can move fast when demand picks up.
  • Traders should watch for continued momentum—especially if more DeepSeek-related headlines emerge.

HOLO remains a watchlist candidate for potential bounce plays in February.

2. Aurora Mobile Ltd (NASDAQ: JG) — The Chinese DeepSeek Play

JG jumped 250%* after announcing it integrated DeepSeek AI into its platform.

At 5 A.M. Eastern on January 27, Aurora Mobile Ltd (JG) announced that it had added DeepSeek AI to its GBTBots.ai platform. The stock skyrocketed in response, highlighting how much interest there is in DeepSeek-related plays.

Look here for more DeepSeek trade ideas.

Low-priced Chinese AI stocks tend to move fast on news. We’ve seen this kind of price action before with other Chinese tech companies that link themselves to trending AI developments.

Why It’s Interesting

  • DeepSeek is China’s biggest AI breakthrough in years, and stocks connected to it are moving fast.
  • JG’s huge price spike could mean further trading opportunities, especially if it holds key support levels.
  • Traders should monitor the stock for additional AI-related announcements—another bullish press release could spark a second wave of momentum.

3. SoundHound AI Inc (NASDAQ: SOUN) — Doing an Offering in the Fallout of DeepSeek

SOUN remains a volatile AI stock after pulling back from its highs—but it’s still in play.

SoundHound AI Inc. was one of the first AI penny stocks to explode when the AI craze first hit in 2023. It ran all the way to $25 per share in 2024 before selling off.

The hype died and SOUN pulled back—then DeepSeek hit and SOUN did a public stock offering, which usually hurts a stock’s price. But there’s still hope, as SOUN has held support around the $14 level.

More Breaking News

Why It’s Interesting

  • SOUN is still a key AI momentum stock, with a strong history of large price moves.
  • Even after its stock offering, the price has stabilized, showing potential for another run.
  • Support at $14 and 12.50 could provide dip-buying opportunities if AI stocks stay strong.

If SOUN announces more AI-related news, we could see another breakout rally.

 

* 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.

Final Thoughts

The DeepSeek news is shaking up the AI sector, creating new trading opportunities every day. Stocks like HOLO, JG, and SOUN have already shown increased volatility in response.

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.

I recommend that you pay close attention to the first days of this possibly historic bull market.

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


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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”