10 Best American Penny Stocks to Buy Now

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1. Lumen Technologies, Inc. (NYSE:LUMN)

Stock price as of May 6th: $4.26

Number of Hedge Fund Holders: 44

Lumen Technologies, Inc. (NYSE:LUMN) provides network connectivity, cloud, and security services to enterprises and government entities globally. LUMN emerged as a key player in the AI ecosystem by partnering with major technology firms to support high-capacity connectivity needs in data centers. The company primarily offers fiber-based internet connectivity delivered through Tier 1 networks.

Lumen Technologies, Inc. (NYSE:LUMN) demonstrated strong financial results in Q1 2025, with North American business revenue increasing by 7.9% YoY. The company strengthened its balance sheet through a term loan refinancing, which reduced annual interest expense by approximately $55 million and extended loan maturity to 2032. The company’s performance was further validated by credit rating upgrades from Moody’s and S&P Global, who recognized the AI-driven demand for Lumen PCF and a stable outlook.

Lumen Technologies, Inc. (NYSE:LUMN) is focused on three strategic priorities: driving operational excellence in core businesses, building the backbone for the AI economy, and cloudifying telecom. The company is making significant progress in its modernization efforts, implementing new digital enterprise applications, unifying network architectures, and using AI to drive intelligence and automation. The company is confident in generating at least $250 million in savings exiting 2025 and $1 billion exiting 2027. Through the Lumen Digital platform, the company is transforming its business model by enabling cloud economics and providing customers with network-as-a-service offerings that deliver real-time on-demand connectivity.

Overall, Lumen Technologies, Inc. (NYSE:LUMN) ranks first on our list of the best American penny stocks to buy now. While we acknowledge the potential of LUMN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT:  20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires

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