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.
9. indie Semiconductor Inc. (NASDAQ:INDI)
indie Semiconductor Inc. (NASDAQ:INDI) is one of the 11 most popular AI penny stocks to buy now.
As of the March 6 closing, consensus sentiment for Indie Semiconductor Inc. (NASDAQ:INDI) was strongly bullish. The stock received coverage from 5 analysts, 4 of whom assigned Buy ratings and 1 gave a Hold call. With no Sell rating, it has a projected median 1-year price target of $5.75, which results in an upside potential of more than 122% at the prevailing level.
On February 4, the company made a very significant strategic announcement relating to its prospects within the Indian market. The company was selected by Mahindra & Mahindra Limited to facilitate one of the most forward-looking in-cabin driver and occupant monitoring systems in India, covering Mahindra’s Electric Origin XEV 9e and BE 6.
The collaboration aims to bring together Indie’s CABIN EYE perception software with Mahindra’s EyeDentity, a proprietary camera-based DOMS hardware platform.
Florian Seitner, VP at indie Semiconductor Inc. (NASDAQ:INDI) stated:
“This successful partnership with Mahindra immediately demonstrates the momentum of indie’s recent acquisition of emotion3D, building on a shared purpose of achieving new breakthroughs in-cabin safety. Our mission has always been to deliver intelligent software solutions that improve road safety and elevate the driving experience.”
indie Semiconductor Inc. (NASDAQ:INDI) is an Autotech company behind the modern driving experience. They design the software and specialized chips that power everything from autonomous safety features and parking sensors to in-car entertainment. By integrating advanced sensing and processing, they make vehicles smarter, safer, and more connected for the next generation of electric and automated travel.
8. Backblaze Inc. (NASDAQ:BLZE)
Backblaze Inc. (NASDAQ:BLZE) is one of the 11 most popular AI penny stocks to buy now.
On February 24, Oppenheimer reduced the firm’s price target on Backblaze Inc. (NASDAQ:BLZE) from $9.50 to $8.50. The firm maintained its Outperform rating on the stock with an adjusted upside potential of more than 124%.
Backblaze Inc. (NASDAQ:BLZE) reported a record adjusted EBITDA margin of 27.6% during the fourth quarter and showed progress on the operational and free cash flow front. However, revenue trends were mixed across its B2 and Computer Backup segments. The firm noted that some B2 deals closed later in the quarter, which contributed to the uneven revenue performance despite the company’s overall operational progress.
On February 24, Craig-Hallum downgraded its rating on Backblaze Inc. (NASDAQ:BLZE) from Buy to Hold. The firm estimated a target price of $4.50, resulting in upside potential of almost 19%.
Backblaze Inc. (NASDAQ:BLZE) is a storage cloud platform that facilitates cloud storage and data backup for individuals and businesses. With an emphasis on high-performance, cost-effective storage, the company delivers its services through web-scale software infrastructure. It offers cloud storage services for public, hybrid, and multi-cloud data storage.
6. Neumora Therapeutics Inc. (NASDAQ:NMRA)
Neumora Therapeutics Inc. (NASDAQ:NMRA) is one of the 11 most popular AI penny stocks to buy now.
On February 17, Myles Minter from William Blair upgraded his rating on Neumora Therapeutics Inc. (NASDAQ:NMRA) from Market Perform to Outperform. The analyst also shared a net present value figure of $7.62 per share for the stock’s valuation.
Minter anticipated a rising success probability of 35% for the company’s NMRA-511, which is utilized in Alzheimer’s disease agitation. This came after data revealed by Neumora Therapeutics Inc. (NASDAQ:NMRA) on the Phase Ib study.
The analyst noted that the study revealed some meaningful cuts in the Cohen-Mansfield Agitation Inventory endpoint. He maintains his views on Alzheimer’s disease agitation, which he sees as a massive opportunity within the market. Moreover, based on some conservative underlying assumptions, Minter has projected peak U.S. sales figures of around $1.8 billion for NMRA-511.
Neumora Therapeutics Inc. (NASDAQ:NMRA) is a clinical-stage biopharmaceutical company that specializes in developing targeted therapies for complex neuropsychiatric and neurodegenerative conditions. These range from major depressive disorder to Alzheimer’s and Parkinson’s. By focusing on the science of the central nervous system, they aim to provide life-changing solutions for those facing mental health and neurological challenges.
6. C4 Therapeutics Inc. (NASDAQ:CCCC)
C4 Therapeutics Inc. (NASDAQ:CCCC) is one of the 11 most popular AI penny stocks to buy now.
On February 23, Brookline increased the firm’s price target on C4 Therapeutics Inc. (NASDAQ:CCCC) from $20 to $30, while maintaining its Buy rating on the stock. The price target increase reflects growing conviction following the initiation timing of the Phase 2 cemsidomide/CFT6455 MOMENTUM trial.
Data continues to show cemsidomide’s differentiated safety and tolerability profile, supporting a clear development path for second-line and later patient populations. The firm also noted that the progress further supports expectations for the Phase 1b trial of cemsidomide in combination with elranatamab to begin in the second quarter.
On February 23, C4 Therapeutics Inc. (NASDAQ:CCCC) reported that the first patient had been dosed in the Phase 2 MOMENTUM trial evaluating cemsidomide in combination with dexamethasone for the treatment of relapsed or refractory multiple myeloma. The trial builds on the compelling anti-myeloma activity and differentiated safety profile previously observed in the Phase 1 study.
The company noted that initiating the MOMENTUM trial represents an important milestone in advancing cemsidomide as a potential foundational therapy for multiple myeloma patients seeking a safe, oral, and convenient treatment option.
C4 Therapeutics Inc. (NASDAQ:CCCC) is a clinical-stage biopharmaceutical company that is involved in developing novel targeted protein degradation (TPD) therapies. These small-molecule degrader therapies help to cure cancer, multiple myeloma, and other fatal diseases. The company has established several strategic partnerships, including Merck KGaA, Biogen, and Betta Pharmaceuticals.
5. BigBear.ai Holdings Inc. (NYSE:BBAI)
BigBear.ai Holdings Inc. (NYSE:BBAI) is one of the 11 most popular AI penny stocks to buy now.
As of the close of play on March 6, consensus sentiment for BigBear.ai Holdings Inc. (NYSE:BBAI) remained moderately bullish. The stock received coverage from 3 analysts, with 1 Buy rating and 2 Hold calls. With no Sell rating, it has a projected median 1-year price target of $5.33. This results in an upside potential of more than 25% at the current level.
On March 3, H.C. Wainwright reduced the firm’s price target on BigBear.ai Holdings Inc. (NYSE:BBAI) to $6 from $8. The firm maintained its Buy rating on the shares, which offer an adjusted upside potential of more than 41% despite the downward revision.
Following the company’s fourth-quarter report, the firm noted that recent improvements to the balance sheet provide greater flexibility to fund future growth initiatives. Despite this positive development, the firm reduced its price target due to lower sales estimates.
BigBear.ai Holdings Inc. (NYSE:BBAI) delivers AI-enabled decision-intelligence solutions across various segments. These include national security, digital identity, healthcare & life sciences, and manufacturing & warehouse operations. It offers unique solutions with varying features, such as Data Conflation at Scale, Discrete Event Simulation, and Next-Gen Decision Support.
4. Plug Power Inc. (NASDAQ:PLUG)
Plug Power Inc. (NASDAQ:PLUG) is one of the 11 most popular AI penny stocks to buy now.
On March 4, Wells Fargo increased the firm’s price target on Plug Power Inc. (NASDAQ:PLUG) from $1.50 to $2. The firm maintained its Equal Weight rating on the shares following a mixed quarterly report.
The firm noted that Plug Power beat street expectations on fourth-quarter revenue and returned to positive gross margins during the period. However, the company’s guidance for 2026 revenue growth came in below consensus expectations, which tempered the overall optimism that followed a strong topline performance during the quarter.
On March 3, Plug Power Inc. (NASDAQ:PLUG) reported a revenue of $225.2 million for Q4, beating consensus estimates of $217.4 million. The company reported that 2025 was a pivotal commercial inflection point as it executed Project Quantum Leap. The company delivered operational optimization, workforce streamlining, facilities consolidation, price increases, and reduced working capital. In addition to the progress over the past two years, the company has undertaken further initiatives to drive cost reduction and improve cash flows in 2026, accelerating profitability, strengthening its financial foundation, and delivering its profitable growth strategy.
Plug Power Inc. (NASDAQ:PLUG) develops products and solutions for an end-to-end green hydrogen ecosystem. The company is focused on facilitating industrial decarbonization through the integration of electrolyzer production, fuel cell systems, hydrogen storage, and logistics. Some of its offerings include GenDrive, GenFuel, GenCare, GenKey, and GenEco electrolyzers.
3. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the 11 most popular AI penny stocks to buy now.
On February 25, Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) reported Q4 revenue of $35.5 million compared to the consensus estimates of $24.6 million. The company’s cash, cash equivalents, and restricted cash balance totaled $753.9 million as of December 31, compared with $603 million as of the end of last year.
The company’s cash runway is expected to extend into early 2028 based on current operating plans without the need for additional financing. CEO & President Najat Khan said the company has now reached an inflection point where the organization is no longer just proving the role of AI in drug discovery but is now proving the clinical proof and long-term value of an AI-native operating system. The fact that this is the first AI-enabled clinical proof of concept in FAP, along with the fact that this is the fifth Sanofi program milestone, shows the maturity of the model.
The company is entering 2026 with five clinical programs advancing, a growing discovery portfolio, and over $500 million earned in upfront and milestone payments.
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company engaged in the acceleration of drug discovery by bringing together automated biology, data science, machine learning, and high-performance computing. Some of its offerings include REC-4881, REC-617, REC-1245, REC-3565, and REC-4539.
2. Butterfly Network Inc. (NYSE:BFLY)
Butterfly Network Inc. (NYSE:BFLY) is one of the 11 most popular AI penny stocks to buy now.
On February 27, TD Cowen increased the firm’s price target on Butterfly Network Inc. (NYSE:BFLY) to $6 from $4.50. The firm maintained its Buy rating on the shares, which now yield more than 64% upside potential.
TD Cowen reflected on the company’s strong fourth-quarter results, which are a key factor supporting its outlook. According to the firm, Butterfly Embedded is expected to become an increasingly important part of the company’s overall story as it develops into an additional revenue stream alongside the core POCUS business. The firm believes that as this platform expands, it could turn the company into more of a tech player rather than a pure play medical technology business.
On February 26, Butterfly Network Inc. (NYSE:BFLY) reported Q4 revenue of $31.5 million, compared to $22.4 million last year. CEO Joseph DeVivo stated that the fourth quarter demonstrated strategic progress, with record topline figures reflecting 41% year-over-year growth.
Butterfly Network Inc. (NYSE:BFLY) is evolving its strategy from being a medical device company to a semiconductor-based company focused on AI-native imaging. The company is expanding enterprise adoption, commercializing HomeCare, and opening new applications through Butterfly Embedded. All of this is powered by the same proprietary Ultrasound-on-Chip technology, consolidating a unified strategy to execute and win.
Butterfly Network Inc. (NYSE:BFLY) is engaged in the development and commercialization of ultrasound imaging solutions worldwide. It delivers innovative, whole-body imaging on a single handheld probe through its Butterfly iQ+ and iQ3 ultrasound devices. Other offerings include Butterfly Move, iQ+ Bladder, Compass AI, and ScanLab.
1. Aurora Innovation Inc. (NASDAQ:AUR)
Aurora Innovation Inc. (NASDAQ:AUR) is one of the 11 most popular AI penny stocks to buy now.
On February 17, Cantor Fitzgerald maintained an Overweight rating on Aurora Innovation (NASDAQ:AUR). The firm estimated a $12 target price, implying upside potential of more than 167% at the prevailing level.
Cantor Fitzgerald noted that the company has completed more than 4.5 million cumulative autonomous miles since January 31, 2026. This includes over 250,000 fully driverless miles, up from 100,000 driverless miles recorded as of the third quarter. Management is targeting more than 200 driverless trucks in operation by year-end, up from 10 as of December. Aurora is also aiming for breakeven gross margins by the end of 2026 and positive free cash flow in 2028. The company has an exclusive partnership with Continental to scale hardware production, with production scheduled to start in 2027.
On February 13, TD Cowen reduced the price target for Aurora Innovation (NASDAQ:AUR) shares to $4.70 from $5.50, and maintained a Hold rating for the stock. The firm noted that updates from the company were encouraging and established a foundation for acceleration in 2026 and an inflection point in 2027. However, the 2026 guidance came in softer than the consensus estimates.
Aurora Innovation (NASDAQ:AUR) is a self-driving technology company. It develops and operates Aurora Driver, which is an integrated self-driving platform for freight trucks and commercial vehicles. This platform combines several self-driving hardware, software, and data solutions to operate a range of vehicle types.
While we acknowledge the potential of AUR as an investment, 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 AUR and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Oversold Financial Stocks to Invest in According to Hedge Funds.
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