In this article, we cover the 10 Best Robinhood Penny Stocks to Invest in.
Sentiments in the equity markets are at an all-time high, with major indices, such as the S&P 500, at record highs. While the catalyst behind the rally has been gains in large-cap stocks, a wave of opportunity is slowly emerging in small-cap and penny stocks, which are trading at highly discounted valuations. According to BTIG chief market technician Jonathan Krinsky, it promises to be a “small-cap summer,” hinting at a possible rotation.
The rotation from large-cap stocks comes as small caps and penny stocks have ample room to catch up, while trading below their fair value. Bank of America notes that short interest is more pronounced in small companies compared to mega caps, signaling it could unwind, resulting in a significant spike in prices.
From a macroeconomic standpoint, Angelo Kourkafas, senior investment strategist at Edward Jones, believes the long-term outlook favors small companies. That’s because inflation metrics have shown little impact from tariffs, fuelling the prospects of the U.S. Federal Reserve cutting interest rates.
Small companies are the most sensitive to interest rate cuts, as lower interest rates make it easier to access capital at affordable rates, thereby accelerating business activities.
“This year’s [earnings] estimates have been revised down, both for small and large caps, small to a greater extent, but 2026 estimates are holding pretty steady. So as we look at that rolling forward 12-months, it still looks pretty positive, and assuming [a] stable macroeconomic backdrop, we would expect small cap earnings to outperform large-cap earnings,”
While penny stocks can be highly volatile and uncertain, ALPS’ Paul Baiocchi advises focusing on quality companies. With that in mind, let’s look at the best Robinhood penny stocks to invest in amid the rotation from large to quality small companies.
Our Methodology
For this article, we conducted an extensive analysis of leading financial websites to identify the Best Robinhood Penny Stocks to Invest In. Our selection process was based on a consensus approach, where we considered stocks with significant upside potential as of September 9. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q2 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Robinhood Penny Stocks to Invest In
10. Tuya Inc. (NYSE:TUYA)
Share Price: $2.58
Stock Upside Potential: 27.91%
Number of Hedge Fund Holders: 11
Tuya Inc. (NYSE:TUYA) is one of the best Robinhood penny stocks to invest in. On August 27, Jefferies reiterated a Buy rating and increased the stock’s price target to $3.60 from $3.49. The price target hike comes on the heels of the stock’s strong momentum, given its 48.76% year-to-date gain.
The impressive run also comes against the backdrop of solid financial results characterized by a 9% revenue growth in the second quarter. Net profit was also up by 302% attributed to stable gross margins and substantial operational leverage.
Jefferies expects the company to benefit from increasing Artificial Intelligence of Things (AIoT) adoption, given that 93% of its device categories incorporate AI functions. In addition, its SaaS business continues to grow at an impressive rate, helping to offset the slowdown at IoT PaaS and Smart Solutions.
Tuya Inc. (NYSE:TUYA) is a global AIoT (Artificial Intelligence of Things) platform provider that empowers brands, manufacturers, and developers to create and sell smart devices and solutions. It offers a cloud-based platform with SaaS (Software as a Service) and PaaS (Platform as a Service) offerings, providing access to hardware, cloud services, app development tools, and AI capabilities.
9. Richtech Robotics Inc. (NASDAQ:RR)
Share Price: $2.68
Stock Upside Potential: 28.46%
Number of Hedge Fund Holders: 5
Richtech Robotics Inc. (NASDAQ:RR) is one of the best Robinhood penny stocks to invest in. On August 29, the developer of artificial intelligence autonomous robots announced the completion of a pilot program with the top five automotive dealerships by revenue in the U.S.
The successful pilot program has already led to one client confirming their intention to proceed with additional statements of work for their dealership locations. Consequently, Richtech Robotics is to undertake projects for the client as part of a Master Service Agreement signed in April.
The MSA agreement remains active as long as at least one statement of work is in effect. It will also automatically renew for an additional 12-month period. Additionally, Richtech Robotics has secured a sales agreement valued at over $4 million with Beijing Tongchuang Technology Development Co., Ltd. The deal is for the purchase and provision of services related to the company’s three product lines and is expected to impact fourth-quarter revenues positively.
Richtech Robotics Inc. (NASDAQ:RR) develops and sells AI-powered autonomous service robots for the hospitality, healthcare, and commercial sectors. The company’s robots automate tasks such as indoor transport and delivery, sanitation, and food and beverage services. Richtech’s product portfolio includes delivery robots, such as Matradee and Titan, sanitation robots like DUST-E, and beverage automation robots.
8. Siyata Mobile Inc. (NASDAQ:SYTA)
Share Price: $2.33
Stock Upside Potential: 28.76%
Number of Hedge Fund Holders: N/A
Siyata Mobile Inc. (NASDAQ:SYTA) is one of the best Robinhood penny stocks to invest in. On August 29, the company entered into an Amended and Restated Merger Agreement with Core Gaming. Under the new terms, Core Gaming is to merge with Siyata Core Acquisition U.S. and become a wholly owned subsidiary of Siyata Mobile.
Likewise, the amended agreement requires Core Gaming to procure and prepay a one-year tail insurance policy. It also needs to extend directors’ and officers’ liability coverage with an aggregate limit of at least $10 million.
Core Gaming Acquisition is poised to expand Siyata Mobile’s footprint into the AI gaming business. The company has emerged as a standout in mobile and AI gaming, with revenues expected to reach $100 million in 2025, up from $13.2 million in 2021. In-app purchases, AI subscriptions, advertising, and brand partnerships drive the company’s robust revenue growth.
Siyata Mobile Inc. (NASDAQ:SYTA) develops and provides cellular communication systems, specializing in Push-to-Talk over Cellular (PoC) devices for enterprise and first responder customers. Its product portfolio includes rugged handsets, in-vehicle devices like the UV350, and accessories designed for instant, nationwide communication over cellular networks.
7. Plug Power Inc. (NASDAQ:PLUG)
Share Price: $1.44
Stock Upside Potential: 29.45%
Number of Hedge Fund Holders: 23
Plug Power Inc. (NASDAQ:PLUG) is one of the best Robinhood penny stocks to invest in. It stands out owing to its edge in the clean energy space through the provision of hydrogen fuel cell systems. Similarly, on August 21, analysts at Roth/MKM reiterated their ‘Buy’ rating on the stock with a $3.50 price target.
The research firm remains optimistic about the stock’s prospects, impressed by positive production activity at the company’s Vista facility. The discovery of larger materials handling orders in fulfillment, substantial electrolyzer activity, and the GenSure project underscores booming business.
While the stock has underperformed year to date, down approximately 36%, Roth/MKM insists that investors are underappreciating the significance of Plug Power’s large electrolyzer projects. The research firm expects one project to occupy production capacity for several years, thereby accelerating EBITDA growth.
Plug Power Inc. (NASDAQ:PLUG) designs, manufactures, and sells green hydrogen fuel cell systems and infrastructure to produce and deliver green hydrogen, which is used as a clean energy source. It builds an entire end-to-end green hydrogen ecosystem, including electrolyzers for hydrogen production, equipment for liquefying and storing hydrogen, as well as transportation and dispensing systems.
6. Nokia Corp (NYSE:NOK)
Share Price: $4.50
Stock Upside Potential: 34.73%
Number of Hedge Fund Holders: 29
Nokia Corp (NYSE:NOK) is one of the best Robinhood penny stocks to invest in. That was evident as BNP Paribas Exane upgraded the stock to “Outperform” from “Neutral” on September 3, setting a price target of EUR4.30. The upgrade comes as the research firm expects the Finnish telecommunications and IT giant to capitalize on the artificial intelligence and data center boom.
BNP Paribas expects the acquisition of Infinera to position Nokia to benefit from AI and data center trends that it has previously bypassed. Similarly, it expects the acquisition to help the company grow its hyperscaler revenues, as they only account for 5% of total revenues.
While power constraints are a drawback amid the AI boom, BNP Paribas expects them to create unique opportunities that Nokia can tap into. It should compel companies to develop medium-sized clusters that are operated in an integrated manner. Such facilities should require additional optical and IP infrastructure that Nokia can tap into.
Amid the opportunities in AI and data centers, BNP Paribas expects Nokia’s revenues to grow 3% faster than consensus estimates next year. It also expects additional margin benefits and synergy realization with the full integration of the Infinera acquisition.
Nokia Corp (NYSE:NOK) is a Finnish telecommunications and IT company that provides network infrastructure, software, and services to telecommunication operators and enterprises globally. It focuses on developing and delivering products for mobile (5G and 4G) and fixed networks, as well as offering software solutions for network automation, management, and cloud services.
5. Alight, Inc. (NYSE:ALIT)
Share Price: $3.69
Stock Upside Potential: 54.23%
Number of Hedge Fund Holders: 30
Alight, Inc. (NYSE:ALIT) is one of the best Robinhood penny stocks to invest in. On September 4, Alight Inc. participated in Citi’s Global Technology, Media and Telecommunications Conference, where it detailed its strategic shift toward employee benefits services.
This transition follows the company’s decision to divest its payroll and professional services divisions. Despite a 2% downward revision in guidance, leadership remained optimistic, targeting 4–6% growth and emphasizing partnerships with firms like Goldman Sachs. AI is central to Alight’s transformation, aimed at improving employee experience and internal operations, with current revenue retention at 93.5% and a goal to return to 98%.
Alight reported a $2.1 billion recurring revenue base and highlighted a 35% increase in its finalist-stage sales pipeline. Its Work Life platform now serves 35 million participants, with expansion plans involving Microsoft and IBM. The company is focused on diversifying its revenue streams beyond traditional fees, with the execution of AI and strategic partnerships seen as key drivers of future performance.
Alight, Inc. (NYSE:ALIT) is a global tech-enabled services firm offering Alight Worklife, a cloud-based platform for employee engagement. Its services span benefits administration, healthcare navigation, financial wellness, and AI-driven tools, supported by a full-service customer care center that manages the entire health and wealth lifecycle.
4. Blink Charging Co. (NASDAQ:BLNK)
Share Price: $1.10
Stock Upside Potential: 128.43%
Number of Hedge Fund Holders: 13
Blink Charging Co. (NASDAQ:BLNK) is one of the best Robinhood penny stocks to invest in. On September 2, the company’s continued expansion in the UK market received a significant boost as it continues to secure partnerships with local authorities, businesses, and property developers for EV charging infrastructure, Flowbird Smart City UK is the latest to join its network.
The company’s UK subsidiary is to collaborate with Flowbird Smart City UK to provide electric vehicle charging solutions for NHS Property Services across the UK. The agreement is to begin with the rollout of EV chargers at various NHS Property Services sites.
The partnership aims to support the development of scalable EV charging networks, including full-service delivery and integration with Blink Charging’s proprietary platform and Smarter Building portal.
“It’s an honor to be working with NHSPS and Flowbird Smart City UK on this significant and impactful project,” said Alex Calnan, Managing Director of Europe at Blink Charging. The collaboration aims to establish what the company hopes will be a long-term arrangement.”
Blink Charging Co. (NASDAQ:BLNK) provides comprehensive electric vehicle (EV) charging solutions, including the sale, installation, and operation of EV charging stations, as well as proprietary network software for businesses, municipalities, and individuals. It also offers services such as site surveys, network management, and maintenance plans, and is expanding its presence globally to accelerate EV adoption and support sustainable transportation.
3. Gossamer Bio Inc. (NASDAQ:GOSS)
Share Price: $2.66
Stock Upside Potential: 294.74%
Number of Hedge Fund Holders: 31
Gossamer Bio Inc. (NASDAQ:GOSS) is one of the best Robinhood penny stocks to invest in. The stock has shown strong momentum, rallying by more than 100% year to date. Likewise, on August 19, analysts at H.C. Wainwright reiterated a ‘Buy’ rating on the stock with a $10 price target.
The research firm’s positive stance is based on the anticipation of key clinical data expected early next year. It has already conducted a literature review of seralutinib, the company’s investigational drug for pulmonary arterial hypertension, and affirmed its positive outlook.
Data review from a Phase 2 TORREY trial underscored sustained hemodynamic and functional improvements through 72 weeks of treatment. Additionally, the trial demonstrated a continued reduction in pulmonary vascular resistance and an improvement in six-minute walk distance among patients. The research firm is optimistic that Gossamer will deliver a positive Phase 3 PROSERA trial, which will affirm the drug’s potential as a disease-modifying therapy.
Gossamer Bio Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company focused on developing and commercializing therapeutics for rare diseases, particularly pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
2. Canopy Growth Corporation (NASDAQ:CGC)
Share Price: $1.36
Stock Upside Potential: 295.98%
Number of Hedge Fund Holders: 6
Canopy Growth Corporation (NASDAQ:CGC) is one of the best Robinhood penny stocks to invest in. On August 29, the company unveiled a new at-the-market equity program, enabling the company to issue and sell up to $200 million in common shares across U.S. and Canadian markets.
Sales in Canada are capped at $50 million, with shares offered directly on NASDAQ, TSX, or other trading platforms at market prices. The program is designed to support strategic investments, acquisitions, working capital, and potential debt repayment, with timing and volume of sales at the company’s discretion.
The initiative is governed by an equity distribution agreement dated August 29, 2025, with BMO Nesbitt Burns Inc. and BMO Capital Markets Corp. acting as agents in Canada and the U.S., respectively. The program will remain active until June 5, 2027, or until the full $200 million is raised. The Canadian portion ends earlier, on July 5, 2026, or upon reaching its $50 million cap. This new arrangement replaces a prior agreement from February 2025.
Canopy Growth Corporation (NASDAQ:CGC) produces and sells cannabis, hemp, and related products across Canada, Germany, and Australia. Operating through four segments—including Canada Cannabis and International Markets- it offers dried flower, pre-rolls, edibles, vapes, oils, and concentrates. Its products are marketed under multiple brands such as Tweed, 7ACRES, Spectrum Therapeutics, Storz & Bickel, Wana, and DOJA.
1. Interactive Strength Inc. (NASDAQ:TRNR)
Share Price: $3.26
Stock Upside Potential: 360.12%
Number of Hedge Fund Holders: N/A
Interactive Strength Inc. (NASDAQ:TRNR) is one of the best Robinhood penny stocks to invest in. On September 4, the company announced robust revenue growth for Sportstech, its pending acquisition target.
Sportstech achieved a 45% year-over-year revenue growth for August, totaling $58 million. It also achieved $6 million in positive EBITDA. The robust revenue growth was driven by higher inventory availability attributed to its partnership with Interactive Strength.
Similarly, the strategic acquisition is on track to achieve 30% full-year revenue growth. Most of the growth is expected in the fourth quarter.
“This success reinforces our commitment to join the TRNR group because we have already accomplished so much in a short period of time and our shared ambitions are much larger. The next couple months after the transaction formally closes are expected to be very exciting,” said Ali Ahmad, Founder and CEO of Sportstech.
Interactive Strength Inc. (NASDAQ:TRNR) designs, produces, and sells premium fitness equipment and digital fitness services under brands like CLMBR, FORME, and Wattbike. It combines advanced hardware, such as fitness mirrors, vertical climbers, and indoor bikes, with digital platforms offering immersive workouts.
While we acknowledge the potential of TRNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRNR and that has 100x upside potential, check out our report about this cheapest AI stock.
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