With AI reshaping tech and Wall Street’s focus shifting to infrastructure and chip providers, active traders are zeroing in on the next wave of AI penny stocks primed for big moves in August. The right catalysts, strong volume, and sector sympathy can deliver outsized returns—if you know where to look and when to act.
If you want to know what I’m looking for — check out my free webinar here!
Let’s break down my top AI penny stocks to watch for August 2025 and the market catalysts that could ignite big swings.
3 AI Penny Stocks to Watch in August 2025
| Stock Ticker | Company | Performance (YTD) |
|---|---|---|
| NASDAQ: APLD | Applied Digital Corporation | |
| NASDAQ: NVTS | Navitas Semiconductor | |
| NYSE: HPE | Hewlett Packard Enterprise |
These aren’t stocks that I’m necessarily buying…
These are stocks that I’m watching.
Want the whole list of AI penny stocks?
10 Top AI and Quantum Computing Penny Stocks for August 2025
The following three picks I’m watching extra closely…
1. Applied Digital Corporation (NASDAQ: APLD): AI Data Center Builder, Riding a Multi-Billion Dollar Wave
Applied Digital (APLD) has rapidly emerged as a cornerstone in the AI infrastructure revolution. The company recently secured a multi-billion dollar, 400MW lease agreement with CoreWeave (CRVW)—one of the most influential names in GPU infrastructure. This deal cements APLD’s reputation as a “dirt-to-data” provider, building AI-first campuses from the ground up and supplying the backbone for next-generation AI computing.
The stock soared over 16% last week as traders reacted to the expanded CoreWeave contract and improving financials. APLD’s story is all about momentum—especially as Wall Street rewards AI infrastructure names with every bullish headline from big tech earnings calls. Price action around the mid-teens remains a key battleground; if APLD can sustain a breakout on volume, it could attract further sympathy flows from the AI data center theme.
Key Developments:
- Expanded partnership with CoreWeave: Now totaling $11 billion in contracted value.
- Ellendale facility rollout: The 100MW site is set to go live by year-end, with further capacity coming online through 2027.
- Q4 2025 Earnings: Revenues surged 41% YoY to $38 million; net loss narrowed 16% to $53.9 million.
Trading Scenarios:
- Bullish: A decisive move and hold above key breakout resistance (mid-teens) could spark a multi-week rally.
- Bearish: Failure to sustain recent gains could see a retest of lower support zones, offering potential for disciplined dip buys.
Momentum is the lifeblood of small-cap AI stocks. Watch for confirmation on volume and don’t chase parabolic moves—discipline is your best edge.
2. Navitas Semiconductor (NASDAQ: NVTS): AI Power Play, Volatility, and Big Partnerships
Navitas Semiconductor (NVTS) is the only pure-play, next-generation power semiconductor company trading at the penny stock level, making it a unique AI chip story for August 2025. The stock has seen heightened volatility in recent weeks, swinging sharply on news tied to U.S.-China trade developments and new contract wins.
Read more: Navitas Semiconductor: Insider Buys Boost Market Interest?
Q2 2025 Earnings Recap:
- Revenue: $14.5 million, slightly above consensus.
- EPS: -$0.25, a larger loss than expected.
- Cash Position: $161.2 million after a $100 million capital raise.
Catalysts:
- AI Data Center Focus: Navitas sharpened its strategy to target AI data center and energy infrastructure markets, away from lower-margin consumer and mobile segments.
- NVIDIA Partnership: NVTS has been tapped to develop advanced GaN and SiC power solutions for next-gen 800V AI data centers—potentially a major new revenue stream.
- Xiaomi Contract Win: Their GaN chips were selected for Xiaomi’s newest 90W charger, showcasing global demand for Navitas technology.
Market Outlook & Risks:
- Recent tariff headlines have driven wild price swings, and some analysts are cautious about near-term growth due to trade uncertainty and aggressive competition in China. Despite downgrades from Craig-Hallum (to Hold), both Needham and Rosenblatt still see long-term upside in NVTS as the AI data center buildout accelerates.
Trading Scenarios:
- Bullish: Any positive trade headlines or incremental wins in AI data center contracts could reignite momentum and lift NVTS towards recent highs.
- Bearish: Ongoing volatility from tariffs and a challenging mobile market may pressure shares, creating short-term trading opportunities for experienced, nimble traders.
This is a classic volatility setup—focus on risk management and look for sector sympathy when major AI infrastructure names make headlines.
More Breaking News
- UiPath Stock Faces Downgrade Amidst Sector Challenges
- Mara Holdings Signs Strategic Partnership to Boost AI Infrastructure
- Vista Energy Shares Lifted by Goldman Sachs’ Price Target Boost
- Transocean Stock Surges After Valaris Acquisition and Strong Contract Momentum
3. Hewlett Packard Enterprise (NYSE: HPE): AI-Driven Networking and High-Performance Computing at a Turning Point
Hewlett Packard Enterprise (HPE) is a legacy technology leader reinventing itself as an AI infrastructure powerhouse. With its recent acquisition of Juniper Networks, HPE is deepening its capabilities in AI-native networking and high-performance computing—critical segments as enterprise AI demand accelerates worldwide.
Recent Headlines & Financials:
- Revenue: Approximately $30 billion annually, with stable (if thin) margins.
- AI-Focused Growth: The Juniper deal expands HPE’s reach in AI-driven networking and positions the company to win more enterprise and government AI contracts.
- Technical Setup: Shares have pulled back below $20 on antitrust news and customer churn, but key support levels are in play. The technical trend is cautious, with low volatility and bearish sentiment dominating.
Why Watch HPE?
- AI Data Center and Cooling Leadership: HPE’s expertise in direct liquid cooling and enterprise-grade AI server solutions makes it a potential beneficiary as AI chip power density increases.
- Strong Demand Across Portfolio: Despite current legal and competitive headwinds, HPE is seeing robust demand for AI, networking, and storage solutions.
- Analyst Views: The market remains divided; some maintain a “Neutral” stance due to near-term pressures, while others point to the AI pivot and Juniper integration as a source of long-term upside.
Trading Scenarios:
- Bullish: A positive resolution to legal headwinds or incremental wins in AI enterprise contracts could fuel a relief rally, especially if the sector stays in favor.
- Bearish: Ongoing competitive and legal pressures may keep shares in a range; downside risk exists if broader tech sentiment turns risk-off.
As AI adoption spreads beyond the biggest players, infrastructure providers like HPE can see bursts of momentum—traders should focus on catalysts, liquidity, and sector sentiment.
Bottom Line: How to Trade AI Penny Stocks in August 2025
APLD, NVTS, and HPE all have strong AI catalysts, but each comes with unique volatility, headline risk, and sector sympathy potential. In my two decades as a trader and mentor, I’ve learned that the most profitable setups come when you combine market catalysts with disciplined execution—especially in fast-moving penny stocks.
Key Tips for August 2025:
- Track earnings, contract wins, and sector headlines daily.
- Watch for volume confirmation and don’t chase—sell into strength.
- Use support and resistance to plan entries and exits, not hope.
- Be prepared for volatility, especially with ongoing macro risks and earnings season in full swing.
After 20+ years in the trenches, my #1 rule hasn’t changed: Trade with a plan, not hope. I’ll only enter these names if they hit my preferred setups—breakouts on real volume, or panic dips with clear support.
This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.
Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:
- Penny Stocks Trading Guide
- Best Penny Stocks Under $1 to Buy Today
- Top 8 Penny Stocks to Watch on Robinhood
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