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3 AI Penny Stocks Ready to Soar in October 2025

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Written by Timothy Sykes Fact-checked by Tim Sykes
Updated 10/6/2025, 3:09 pm ET 10/6/2025, 3:09 pm ET | 7 min 7 min read
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AI remains the market’s main character — but leadership is widening beyond the biggest tech names. Recent research shows capital rotating into “AI picks-and-shovels” like data-center builders, utilities, and robotics alongside chip leaders. At the same time, veteran value investors warn about frothy valuations and headline-driven swings. Translation: catalysts still matter, but selectivity and timing matter more.

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

Below are three AI penny stocks with fresh catalysts, real businesses, and active narratives heading into October.

3 AI Penny Stocks to Watch in October 2025

Stock TickerCompanyPerformance (YTD)
NASDAQ: RRRichtech Robotics Inc
NASDAQ: SOUNSoundHound AI, Inc
NASDAQ: APLDApplied Digital Corporation

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 October 2025

The following three picks I’m watching extra closely…

Richtech Robotics Inc (NASDAQ: RR) — The AI-Driven Retail Automation Stock

Richtech Robotics just scored a multi-year master services agreement with a top global retailer. It’s a two-year base term that auto-renews annually, signaling strategic intent and the potential for multi-site rollout. Shares ripped through September, with the surge extending the August pop.

  • Catalyst: New MSA with an undisclosed global retailer; credibility + distribution potential.
  • Recent move: Stock jumped roughly 140%* in September, tapping the mid-$5s before a pullback.
  • Watch next: Evidence of deployment scale (store/site counts), cross-vertical wins, and additional MSA annexes.

What they do: Robotic servers (Matradee), autonomous cleaning (DUST-E), and heavy-duty logistics bots (Titan) already live in restaurants, hospitals, casinos, and other high-traffic venues.

Why it matters now: This is where hardware meets execution. Getting plugged into Tier-1 retail can shift RR from niche vendor to platform partner if pilots convert to standardized rollouts.

What to watch: Whether shares can retake recent highs in the mid-$5s on real deployment updates. Sustained interest typically follows hard evidence (POs, site counts, payback data), not just headlines.

NASDAQ: SOUN — SoundHound AI, Inc — The Post-Spike AI Voice Stock

SoundHound remains one of AI’s most volatile crowd favorites. After an earnings-driven pop in August, the stock broke out to fresh local highs in September. The company’s conversational-AI stack (Houndify, Smart Answering, SoundHound Chat AI) powers voice interfaces across autos, TVs, kiosks, and customer support.

  • Catalyst: Strong 2025 guidance, continued wins in auto/embedded, expansion of Vision AI features.
  • Recent move: Up 190%* YTD in 2025, yet still about 30% below prior highs. There’s headroom if momentum persists.
  • Watch next: Fresh OEM announcements, ARR mix shift, and any analyst upgrades that validate the growth arc.

Why it matters now: Elevated short interest (roughly a third of float by various trackers) + surging call activity makes squeeze-style bursts possible when fundamentals and flows align.

What to watch: Can SOUN push through the low-$20s and hold on rising volume as enterprise deployments scale?

More Breaking News

Applied Digital Corporation (NASDAQ: APLD) — The Data-Center Partner of CoreWeave

Applied Digital designs and runs AI/HPC data centers built for GPU-dense workloads. The big catalyst: CoreWeave exercised additional lease options, taking APLD’s contracted lease revenue to ~$11B across its Polaris Forge 1/North Ellendale buildout roadmap. That’s real, multi-year, contracted demand.

  • Catalyst: CoreWeave expansion; advancing discussions with additional investment-grade hyperscale customers.
  • Recent move: Shares are one of 2025’s top AI infrastructure winners, pushing to new 52-week highs in the mid-$20s by late September.
  • Watch next: Campus energization milestones, lease-up cadence, financing efficiency, and margin progression as capacity comes online.

Why it matters now: Unlike many story stocks, APLD’s model is shifting toward high-visibility, lease-driven cash flows as AI capex stays elevated. Analysts highlight potential revenue growth >40% and operating leverage as sites scale.

What to watch: Whether shares can sustain above recent highs as execution de-risks future NOI and additional capacity is pre-sold.

* Past performance isn’t indicative of future results.

Are AI Stocks Headed for a Crash?

Some respected voices think we’re in the “dogs chase cars” phase of the cycle. Investor Bill Smead said that the AI trade resembles late-’99 in the dot-com bubble: extreme momentum, tight interdependencies, and pockets of sky-high valuations.

If leaders can rise 40% on a headline, they can also fall 40% on disappointment.

On the other hand, the AI economy is bigger than Big Tech now:

  • Rotation & breadth: AI sector leadership is widening beyond the “Mag 7” to names like Oracle, Broadcom, Palantir, and crucially to infrastructure enablers.
  • Cheaper participation: Non-tech and financial names levered to AI adoption (banks using AI to lift margins; builders, grid players, and logistics tied to data-center buildouts).
  • Picks & shovels: The AI sector is branching out to hardware, data centers, utilities/renewables, supporting AI demand without peak multiples.

Bottom line: Booms correct, but AI’s capex cycle and real-world deployment continue. If you’re chasing high-beta names, manage risk and don’t marry momentum. If you’re nervous about froth, consider lower-correlation or value-tilted AI beneficiaries (power, build-out, networking) as ballast.

Final Word

October’s tape favors real catalysts + real distribution. RR has a credible retail MSA, SOUN keeps stacking enterprise-voice momentum with squeeze fuel in the tank, and APLD is converting AI demand into contracted revenues. As always, do your own research, respect volatility, and let price/volume confirm.

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.

If you’re serious about learning how to trade plays like these — not just follow them — apply for my Trading Challenge.

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:

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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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”