The need for the adoption of Artificial Intelligence (AI) is becoming increasingly pivotal for businesses to elevate their operations. It enables companies to become more efficient, curtail costs through automation, and back their decision-making with real-time data. Companies can also gain a competitive edge by leveraging AI tools to enhance the overall customer experience, improve efficiency, and protect themselves from cyber threats.
On January 22, Goldman Sachs shared its views on what to expect from AI advancements during 2026. The firm noted that AI models have evolved from being mere chatbots to becoming an integral component of the global economy and financial markets in particular. Goldman Sachs’ Chief Information Officer, Marco Argenti, stated:
“In my 40 years in technology, 2025 saw the biggest changes I have seen in my career. And what’s crazy is we haven’t seen anything yet – in fact, I predict 2026 will be an even bigger year for change.”
Goldman also shared that consensus forecasts for 2026 capital expenditures by AI hyperscalers have been adjusted upward. Reflecting on the importance of AI models, the firm anticipates that businesses that own AI models will technically own new operating systems, which will make them stand out. Another interesting trend highlighted was the transition towards “agent-as-a-service economy.”
According to the report, companies will shift away from human-centric staff and rely more on hybrid multi-agent teams of humans and machines. Consequently, they will charge customers based on the data units consumed by AI models, rather than the conventional method of “hours worked.”
With that background, let’s explore our selection of 11 Most Popular AI Penny Stocks to Buy Now.
Our Methodology
To identify relevant stocks for this article, we conducted a sector-agnostic screening of U.S.-listed AI companies with market capitalizations above $200 million and share prices below $5. Our list includes companies with AI embedded in their core business, as well as AI- and data-driven innovation stocks. Also, we only shortlisted stocks with at least 20% upside potential according to TipRanks consensus, as of March 6 closing.
Next, we identified the number of hedge funds holding positions in these stocks as of the end of the fourth quarter of 2025. Finally, we selected 11 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Rezolve AI PLC (NASDAQ:RZLV)
Rezolve AI PLC (NASDAQ:RZLV) is one of the 11 most popular AI penny stocks to buy now.
On February 12, Alliance Global reduced the firm’s price target on Rezolve AI PLC (NASDAQ:RZLV) from $14 to $13. The firm reiterated a Buy rating on the stock, with a revised upside potential of more than 376% despite the target price revision.
Alliance Global maintained its bullish views on Rezolve AI PLC (NASDAQ:RZLV) following the company’s recent acquisition of Reward Loyalty UK. This was a cash transaction for a 100% stake, valued at $230 million. The firm believes that this strategic acquisition “completes the company’s technology stack.”
Alliance Global has lowered the target price for Rezolve AI PLC (NASDAQ:RZLV) amid a reduction in cash balance, as a result of this deal. However, the firm still sees significant upside backed by expectations of potential synergies and incremental revenues.
In regard to this deal, Daniel Wagner, Founder, Chairman, and CEO of Rezolve Ai, stated:
“Reward is a profitable, scaled platform that sits directly at the heart of AI-driven commerce, already operating at scale, where discovery, engagement, transaction and loyalty converge. Acquiring it entirely for cash allows us to capture that value at an attractive point, while adding a strong revenue base, profitable growth and immediate strategic scale. This is not a diversification move; it materially advances our core AI commerce strategy by embedding Rezolve Ai deeper into everyday consumer spend across banks, retailers and payment networks.”
Rezolve AI PLC (NASDAQ:RZLV) is a retail-tech pioneer that turns passive browsing into active engagement. Since 2016, they’ve been bridging the gap between brands and shoppers by using generative AI to create seamless commerce experiences. Their platform facilitates manufacturers and retailers to build deeper, more dynamic connections with customers across every digital touchpoint.
10. Similarweb Ltd. (NYSE:SMWB)
Similarweb Ltd. (NYSE:SMWB) is one of the 11 most popular AI penny stocks to buy now.
On February 19, Ken Wong from Oppenheimer cut down the target price for Similarweb Ltd. (NYSE:SMWB) from $7 to $4. The analyst reaffirmed his Outperform rating on the stock, which offers an adjusted upside potential of over 42%.
Wong reflected on the company’s recent fourth-quarter results, in which revenue of $72.8 million fell below consensus estimates of $76.4 million. This was predominantly due to delays in two large LLM deals. However, the analyst noted enhanced sales productivity, which caused EBIT to be consistent with forecasts.
Co-Founder and CEO of Similarweb Ltd. (NYSE:SMWB), Or Offer, highlighted the company’s strong positioning in the AI-driven world and healthy demand outlook. He further stated:
“The AI revolution fundamentally favors companies with proprietary, high-quality, and real-time data. Similarweb Ltd.’s (NYSE:SMWB) unmatched view of the evolving digital world is a prime foundation for training and maintaining LLMs and powering the next generation of agentic AI tools with accuracy and trust, as validated by our recent milestone partnership with Manus. While the scale of new larger, multi-year opportunities has resulted in longer sales cycles and revenue growth did not yet accelerate in the fourth quarter as we expected, the demand we see in the pipeline and the steps we have taken to upskill and specialize our sales force reinforce our confidence in our strategy to build an AI-driven data powerhouse that delivers profitable growth.”
Similarweb Ltd. (NYSE:SMWB) is a digital intelligence platform for modern businesses, transforming raw data into clear market visibility. They provide tools to benchmark performance against competitors, map out customer journeys, and uncover effective marketing strategies. Whether it’s tracking app engagement or identifying high-quality sales leads, their insights help companies make smarter data-backed decisions.
