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Top AI Penny Stocks to Watch in March 2025

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Written by Timothy Sykes Fact-checked by Ellis Hobbs
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AI penny stocks have dominated the market for the past year — and they show no signs of slowing down. From explosive short squeezes to Nvidia-backed runners, these low-priced stocks offer serious volatility and profit potential for short-term traders.

The AI sector is also getting an extra boost from Nvidia’s latest earnings blowout and President Trump’s continued push to secure U.S. dominance in AI infrastructure. That macro tailwind could keep smaller AI stocks moving — if you know how to trade the momentum.

Want to stay ahead of the crowds? Sign up for my no-cost weekly watchlist to get exclusive insights into the market’s biggest opportunities.

3 AI Penny Stocks to Watch in March 2025

My top 3 AI penny stocks to watch this month are:

  • NASDAQ: MLGO — MicroAlgo Inc — The Short Squeeze AI Penny Stock
  • NASDAQ: APLD — Applied Digital Corp — The AI Penny Stock That NVIDIA Is Still Invested In
  • NASDAQ: MARA — Marathon Digital Holdings Inc — The Bitcoin Miner Betting Big on AI

Check out my complete AI penny stock watchlist here!

Stock TickerCompanyPerformance (YTD)
NASDAQ: MLGOMicroAlgo Inc+ 17.13%
NASDAQ: APLDApplied Digital Corp+ 0.19%
NASDAQ: MARAMarathon Digital Holdings Inc+ 29.45%

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.

1. MicroAlgo Inc (NASDAQ: MLGO) — The Short Squeeze AI Penny Stock

MicroAlgo Inc (NASDAQ: MLGO) put on a clinic for short squeeze traders last month, spiking 910%* in a single session on February 21.

  • The stock ran from under $2 to over $11, and the move came with no news at all.
  • StocksToTrade confirmed MLGO’s tiny float — just 6.3 million shares — which made it the perfect candidate for stubborn shorts to get squeezed into oblivion.

These types of no-news short squeezes happen every month — and MLGO showed traders exactly how fast they can play out.

The stock has since pulled back, but with AI still in the headlines and traders hunting for the next low-float mover, MLGO remains a top watch for follow-up volatility.

More Breaking News

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

Nvidia’s latest blowout earnings reminded traders why it’s still the undisputed king of AI stocks. But for penny stock traders, the real opportunity lies in APLD — a smaller AI infrastructure play that Nvidia still owns a stake in.

  • Nvidia first bought into APLD in September 2024, sending shares on a 280% run* from under $4 to $12 by February 2025.
  • Even though APLD has pulled back, Nvidia hasn’t sold its shares, meaning bullish sentiment still underpins the stock.

As Nvidia’s AI data center business grows, smaller infrastructure players like APLD could catch sympathy momentum. And if APLD ever issues another Nvidia-related press release, this thing could spike all over again.

3. Marathon Digital Holdings Inc (NASDAQ: MARA) — The Bitcoin Miner Betting Big on AI

Marathon Digital Holdings Inc (NASDAQ: MARA) used to be just a Bitcoin miner — but now it’s making a play for AI infrastructure dominance too.

  • MARA crushed Q4 earnings, posting 37% revenue growth and stacking 18,146 new Bitcoin onto its balance sheet.
  • The stock also caught a Trump-fueled boost after the former President floated plans for a U.S. crypto reserve, squeezing shorts who were betting on a Bitcoin crash.
  • But the biggest twist came when MARA’s management revealed plans to repurpose its data centers for AI inference, a pivot that could make MARA an unexpected AI infrastructure play.

With Bitcoin near all-time highs and Nvidia’s AI spending spree continuing, MARA sits at the crossroads of two hot sectors — giving it multiple catalysts for future volatility.

 

* Past performance isn’t indicative of future results

Tips for Trading AI and Quantum Computing Stocks

  1. Focus on Low Floats: Stocks like QUBT have low floats, meaning fewer shares are available for trading. This creates massive spikes when demand surges.
  2. Watch Volume: High trading volume signals strong interest and increases the likelihood of big moves.
  3. Use Pre-Market and After-Hours Sessions: Spikes often happen outside regular hours. Be prepared to trade during these extended sessions.
  4. Stick to Patterns: Whether it’s a morning spike or a midday dip-buy, follow proven patterns to maximize your profits.

The Future of AI and Quantum Computing

The AI sector isn’t cooling off anytime soon — but that doesn’t mean you can blindly buy and hope. If you want to trade AI penny stocks like a pro, you need to track:

  • Sector momentum: Is Nvidia pushing higher, or is AI losing steam?
  • Sympathy plays: When a big AI stock spikes, smaller stocks in the space often follow.
  • News catalysts: Earnings, partnerships, and short reports can all trigger major moves.

Every stock on this list has proven it can move fast, but that doesn’t mean every day will bring a setup. The best traders know how to wait for the perfect trade, and they never chase random spikes without a plan.

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”