AI Penny Stocks
Smart computers called AI are changing the way we work, like how we drive and trade. In 2023 alone, people around the world put more than $50 billion into AI companies, and that number keeps going up. At the same time, a lot of small AI companies are selling their stocks for very low prices, sometimes for less than $5 or even $1. People sometimes call these AI penny stocks or penny AI stocks.
People who are new to trading or don't have a lot of money might find these small stock AI companies very interesting. They let you invest in the AI field, which is growing quickly, without spending a lot of money. But they are risky, just like any other cheap stock.
This blog will talk about what AI penny stocks are, why they're popular in 2025, and how someone who has never bought one before can choose the right ones. We'll also give you a list of tiny AI stocks to keep an eye on and some simple trading tips.
At Market Investopedia, we help people who are new to the market understand it better. This guide is meant to help you if you are new to buying.
What Are AI Penny Stocks?
AI penny stocks are the shares of small companies that use artificial intelligence (AI). They are sold at very low prices, usually less than $5 or even less than $1. This is why they are also known as AI penny stocks under $1.
*Let's make it easy to understand:
*
AI stands for "artificial intelligence." Intelligent technologies like robots, machine learning, speech recognition, and data processing are used in this field.
Penny stocks are small companies' cheap shares. If a stock is traded on a smaller exchange or even over the counter (OTC), it's likely that its market value is low.
When you put these two things together, you get AI penny stocks, which are also called penny AI stocks or penny stocks AI. These are cheap stocks of small companies that are creating or using AI technologies in some way.
Even though these companies aren't as big or well-known as Google or Microsoft, they may be working on AI tools, software, or systems that can grow in the future. If the business succeeds, the stock price may go up, and the people who invested the first money can get a lot of money back. But if it doesn't work, the price may also drop quickly.
A lot of new users are interested in AI penny stocks and AI companies because:
It doesn't cost much to join.
Artificial intelligence is a field that is growing quickly.
They want to be early investors in tech companies that will be big in the future.
Still, it's important to remember that these stocks are dangerous and their value can change. Because of this, it is very important to do the right study before investing. It's easier to keep an eye on price changes and learn about success thanks to platforms like TradingView for AI penny stocks.
In 2025, Why Do Traders Want to Buy AI Penny Stocks?
AI is going to have a big year in 2025. Because tools like ChatGPT, self-driving cars, and AI-based apps have been so successful, more and more companies, big and small, are getting into the AI game.
According to a study by McKinsey, AI could add $4.4 trillion to the world economy every year. With this much growth, most buyers think that even small AI companies can grow to be big. This is why both new and experienced buyers are interested in the best penny AI stocks.
Because of these things, more traders are now interested in these stocks:
**1. AI is getting bigger quickly
**AI is used in lots of different fields, from medicine to defense. It's not just big companies that are making AI tools. This makes room for the best AI tiny stocks that could grow over the long term.
**2. Low cost to get in
**AI penny stocks that cost less than $1 or $5 let buyers on a budget join the AI boom without having to put up a lot of money. You can start small but think big.
**3. Small businesses with a lot of potential
**Some of the biggest tech companies today started out as small ones. A lot of people are betting that one of the tiny stocks today will be the next big AI winner. If you catch the right one early, it can pay off big.
**4. Interest in Retail Traders
**More people are getting into trading on their own with the help of apps like Robinhood and Webull. Everyone wants to find the best AI cheap stocks to buy right now, before the big banks get involved.
**Keep in mind: **High risk comes with high profit. A lot of small businesses fail because these stocks are unpredictable. Know what you're buying.
The Best AI Penny Stocks for 2025
These are small companies that focus on AI that are making waves among new traders who want to save money. Even though their stock prices are low, some of them are working on real and interesting AI technology.
**1. SoundHound AI
**Known for advanced speech recognition and conversational AI
Used in smart cars, customer service, and mobile apps
Partners include Mercedes-Benz and Hyundai
Listed on NASDAQ
Under $5 and growing fast
**2. BigBear.ai (BBAI)
**Works in U.S. defense sector with AI decision systems
Contracts with U.S. Army
Offers machine learning and predictive analytics
Stock is highly volatile, attracts momentum traders
**3. Guardian AI (GFAI)
**Uses AI-powered robots for cleaning, security, and service
Deployed in malls, hotels, and airports in Asia
Trades under $1
Prone to sudden price spikes on news
**4. Lantern Pharma (LTRN)
**Combines AI and biotech for faster cancer drug discovery
RADR® AI system finds new uses for existing drugs
Strong IP in oncology
Popular among AI-healthcare investors
**5. Alithya Group
**Canadian digital strategy firm using AI, cloud, and data tools
Clients in energy, healthcare, and industry
Not pure AI but offers AI services
Stock ranges $1–$2, steady performer
**6. Predictive Oncology
**Uses AI to predict how tumors respond to treatments
Personalized medicine potential
Focus on rare and hard-to-treat cancers
Low float, volatile on news
How We Picked These Stocks
To find top AI penny stocks:
Make sure the company really is focused on AI
Check for real-world application
Monitor price trends on TradingView and in the news
Prefer NASDAQ-listed over OTC stocks
Start with AI stocks under $1
Diversify across sectors like biotech, defense, SaaS
How to Pick the Best AI Penny Stocks
Buying AI penny stocks is exciting, but risky. Follow this approach to reduce risk:
**1. Know what the company does
**Check that its core business is AI. Many companies claim to use AI but don't.
**2. Look for growth potential
**Focus on companies solving real-world problems in fast-growing sectors.
3. Watch news and trade activity
*Big news can cause sudden price changes. *Trading volume shows liquidity.
**4. Check financial basics
**Look at revenue, earnings, and dilution risk from new share issues.
**5. Favor major exchanges
**NASDAQ stocks are more transparent than OTC stocks.
**6. Start small and diversify
**Don’t go all-in. Spread across different industries to lower risk.
Before You Buy AI Penny Stocks, Consider This:
- Share dilution risk – New shares can lower value
- Low liquidity – Harder to sell during low volume
- Hype-driven – Some get attention without strong fundamentals
- Unproven business models – Many are early-stage startups
- Extreme price swings – Highly volatile investments
In Conclusion
Artificial intelligence penny stocks are a low-cost way to enter the growing AI sector. But they come with high risk. Whether you're looking for the next big penny AI stock under $1 or checking charts on TradingView, research is essential.
At MarketInvestopedia, we make complex markets easier for new traders to understand.
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