In this article, we will discuss the 12 Best NASDAQ Penny Stocks to Buy According to Analysts.

Big technology stocks are no longer leading the stock market higher, and a rotation away from large caps is gaining momentum instead. That’s evident as the Nasdaq 100 index is down by about 0.5% year to date. At the same time, small-cap and penny stocks are on the move. The Russell 2000 index is rallying by about 5% year to date. This underscores the renewed investor interest in small-cap companies.

“Not only is skew increasing at the SPX index as more investors seek portfolio hedges, but more downside risk is also priced in at the single-stock level, especially for mega-cap tech,” said Mandy Xu, head of derivatives market intelligence at Cboe Global Markets Inc. “Retail traders have grown more cautious on tech. Call buying has dropped sharply to levels last seen during the 2022 bear market.”

This rotation from large caps became particularly pronounced in February. During that month, the Nasdaq 100 fell by more than 4%. These declines were primarily driven by significant losses in large-cap tech stocks. One factor behind this sell-off was concern that AI could disrupt established industries. This set the stage for further developments in the months that followed.

Building on these developments, growing concerns about valuations, after two years of blockbuster gains fueled by artificial intelligence, are one factor behind the ongoing rotation. In addition to valuation worries, the US Federal Reserve embarking on a monetary easing spree acts as another catalyst, providing support to penny stocks and small caps. As a result, market dynamics have continued to shift in favor of smaller companies.

In addition to these market forces, valuation has become a key consideration as the fast-moving conflict across the Middle East heightens investor anxiety and strengthens the case for safe-haven trades. According to John Briggs, head of US rates strategy at Natixis, traders are likely to adopt the strategy of “haven first, ask questions later.”

While the main focus will be on treasuries, gold, and the Swiss franc, it is important to note that Nasdaq penny stocks trading at highly discounted valuations are also likely to elicit interest amid the continued rotation from large caps.

On the other hand, providing a more cautious perspective within this shifting environment, strategists at Barclays have warned against quickly buying the dip. “The risk-reward doesn’t seem compelling,” he said. “If equities pull back enough (say over 10% in the S&P 500), there is likely to come a time to buy. But not yet.”

With that background in mind, let’s take a closer look at the 12 best NASDAQ penny stocks to buy according to analysts.

Our Methodology

To compile a list of 12 Best NASDAQ penny stocks to buy according to analysts, we used screeners to identify stocks trading at or under $5. We picked out stocks with an upside potential of more than 50%. Next, we narrowed the list to companies that are owned by hedge funds and have recently shared important updates that could affect investor sentiment. These stocks are also widely followed and favored by analysts and top hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).

Best NASDAQ Penny Stocks to Buy According to Analysts

12. ThredUp Inc. (NASDAQ:TDUP)

ThredUp Inc. (NASDAQ:TDUP) is among the best NASDAQ penny stocks to buy according to analysts. On March 2, ThredUp Inc. (NASDAQ:TDUP) reported its financial results for Q4 and full year 2025. CEO James Reinhart highlighted the strength of ThredUp’s marketplace model and said the company is focused on profitable growth in 2026 through buyer expansion, quality supply, and AI-driven innovation.

In Q4 2025, revenue rose 18% year-over-year to $79.7 million, with gross profit of $63.4 million and a narrower loss of $5.6 million. Active buyers grew 30% to 1.65 million, while orders increased 27% to 1.56 million. For the full year, revenue reached $310.8 million, up 20%, with losses reduced to $20.2 million from $40 million in 2024. Adjusted EBITDA improved to $13.5 million, and orders rose 25% to 6.08 million.

Looking ahead, ThredUp expects Q1 2026 revenue of $79.5–$80.5 million and full-year 2026 revenue of $349–$355 million, with gross margins around 78–79% and adjusted EBITDA margins near 6%. The company sees strong momentum as it continues to scale its resale platform and drive innovation.

ThredUp Inc. (NASDAQ:TDUP), founded in 2009 and based in Oakland, California, runs an online resale platform in the U.S. where consumers can buy and sell secondhand apparel, shoes, and accessories.

11. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)

HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is among the best NASDAQ penny stocks to buy according to analysts. On February 23, Cantor Fitzgerald cut its price target for HIVE Digital Technologies Ltd. (NASDAQ:HIVE) from $7.50 to $5.00 but kept an Overweight rating.

The firm said Bitcoin mining is making less money now and expects lower Bitcoin prices. Hive reported strong growth, with quarterly revenue of $93.1 million, up 219% from last year. It mined 885 Bitcoin in the quarter and increased its mining power to 25 exahashes per second. Even so, the company is still not profitable and posted a loss over the past year. Hive plans to grow its mining power to 35 exahashes per second by the end of 2026 and is also expanding into AI and high-performance computing, aiming to reach $225 million in annual AI revenue by 2027.

Earlier, on February 18, Rosenblatt lowered its price target on Hive from $6.50 to $4.50 but kept a Buy rating. The firm said Hive’s expansion in Paraguay has improved its mining costs, helping it handle lower Bitcoin prices. With Bitcoin trading below $70,000, Rosenblatt noted that Hive Digital’s lower hash costs and larger scale should help it weather the tougher market while keeping flexibility to grow its high‑performance computing business.

HIVE Digital Technologies Ltd. (NASDAQ:HIVE) builds and operates green‑energy data centers in Bermuda and Paraguay. The company mines and sells digital currencies, offers performance computing hosting, and provides blockchain infrastructure solutions by supplying computational power to distributed networks.

10. MannKind Corporation (NASDAQ:MNKD)

MannKind Corporation (NASDAQ:MNKD) is among the best NASDAQ penny stocks to buy according to analysts. On 26 February, MannKind Corporation (NASDAQ:MNKD) shared its plans at the Oppenheimer healthcare conference. The company said it expects strong growth from its main products. These include Afrezza for children, the FUROSCIX autoinjector, and a new drug program, MNKD-201, for lung disease (IPF). Even though there may be competition from United Therapeutics, MannKind’s leaders said they feel positive about the future.

The company hopes to exceed $450 million in revenue by 2026. It expects growth from Afrezza, FUROSCIX, and royalties from Tyvaso DPI. The company also believes it could receive $700 million to $1 billion in cash from Tyvaso over the next few years.

Afrezza may soon be approved for children, with a decision expected on May 29. The company is also testing a smaller dose to make it easier for kids to use. FUROSCIX is expected to grow, especially in hospitals, and the new autoinjector could help sales. MNKD-201 is now in early studies, and more results are expected later this year.

On the same day, MannKind Corporation reported Q4 2025 revenues of $112 million, up 46% from the prior year, with Furoscix and Afrezza each contributing $23 million in sales. Full-year 2025 revenue reached $349 million, a 22% increase, boosted by the acquisition of scPharmaceuticals.

MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company focused on improving care for chronic diseases.,It develops and sells treatments for serious health needs such as diabetes, pulmonary hypertension, and heart failure. The company also works on therapies for fluid overload in chronic kidney disease.

9. Grab Holdings Ltd (NASDAQ:GRAB)

Grab Holdings Ltd (NASDAQ:GRAB) is among the best NASDAQ penny stocks to buy according to analysts. On February 26, Reuters reported that Grab Holdings Ltd (NASDAQ:GRAB) aims to grow its revenue by 20% each year and triple its profit by 2028. These growth projections were provided by Grab’s President and COO, Alex Hungate, during an interview with the agency at the company’s headquarters in Singapore. Grab is betting on AI and the expansion of new services to drive growth and profitability, according to the report.

On February 20, Grab Holdings Ltd. (NASDAQ: GRAB) announced it will hold a virtual extraordinary general meeting (EGM) on March 24, 2026, at 11:45 a.m. Singapore time. The company also disclosed board changes in a U.S. SEC filing.

Cheryl Goh, Group VP of Marketing and Sustainability, will step down on February 28. Alex Hungate, President and COO, will join the board on May 1, replacing CFO Peter Oey.

On February 12, Grab Holdings Ltd released its Q4 2025 earnings report, showing both EPS and revenue grew from the same quarter in 2024. EPS of $0.0386 beat the consensus estimate of $0.01, though revenue of $906 million missed the $937.2 million that analysts expected. Notably, Grab achieved its first full-year profit in 2025.

Grab Holdings Inc. (NASDAQ:GRAB) is an operator of a superapp. People can use the app to order groceries, hail a ride, or send packages. Grab serves the Southeast Asia market, and it operates in segments such as mobility, deliveries, and digital financial services.

8. Udemy Inc (NASDAQ:UDMY)

Udemy Inc (NASDAQ:UDMY) is among the best NASDAQ penny stocks to buy according to analysts. On February 19, Udemy Inc (NASDAQ:UDMY) announced the launch of an AI training plan in partnership with Google. This arrangement will see Udemy’s learners worldwide benefit from Google’s AI professional certification through a plan dubbed “Learn AI with Google.” This package offers the Udemy community three months of hands-on practice with Google AI Pro as well as the chance to earn industry-recognized credentials.

According to Udemy, this plan is designed to meet the growing workplace demand for AI skills.

“Nearly 70% of employee upskilling efforts across the globe focus on AI skills…Our partnership with Google represents a pivotal moment in career advancement, empowering professionals with the practical skills they need to grow in their roles,” commented Ramji Sundararajan, Udemy’s president of consumer.

Notably, the Google deal expands Udemy’s AI partnerships. On February 11, Udemy announced a deal with OpenAI to offer its course content directly within the ChatGPT interface through a dedicated app. This arrangement would allow Udemy learners to watch course videos, ask questions, and enroll into courses within ChatGPT.

In other news, the FTC on February 10 granted early approval to Udemy’s pending merger with Coursera.

Based in San Francisco, California, Udemy Inc (NASDAQ:UDMY) is an education technology company operating an online learning marketplace. It offers more than 250000 courses and serves over 80 million students worldwide. Udemy agreed to merge with Coursera, another online learning provider.

7. VinFast Auto Ltd (NASDAQ:VFS)

VinFast Auto Ltd (NASDAQ:VFS) is among the best NASDAQ penny stocks to buy according to analysts. On February 23, VinFast Auto Ltd (NASDAQ:VFS) signed an MoU with PlusX Electric, a DEWA-approved EV charging provider in the UAE, to expand charging access and strengthen customer support. The partnership aims to enhance the EV ownership experience through reliable charging, roadside assistance, and digital integration.

Under the agreement, the companies will deploy portable charging pods, offer on-demand mobile charging, and explore emergency roadside charging services. PlusX may also become a preferred partner for home and office charger supply, installation, and after-sales support. For fleet customers, the collaboration will assess scalable solutions, such as DC fast-charger leasing and mobile charging services.

VinFast and PlusX will further explore digital integration, insurance offerings, and co-branding opportunities to deliver a seamless EV ecosystem for UAE customers.

On February 12, VinFast Auto Ltd (NASDAQ:VFS) released its January 2026 delivery figures for its domestic Vietnam market. It reported a 55% YoY increase in deliveries to 16,172 electric vehicles. The best-selling model that month was the Limo Green, which recorded 3,868 vehicle deliveries. The VF 3 model placed second with 3,185 deliveries, and the VF 5 model ranked third with 2,737 deliveries. The VF 6 and VF 7 recorded 2,485 deliveries and 975 deliveries, respectively. In VinFast’s newer models, 1,237 units of the Minio Green and 865 units of the EC Van were delivered that month.

VinFast Auto Ltd (NASDAQ:VFS) is an electric vehicle manufacturer. It makes electric buses, electric cars, and electric scooters among other products. It also offers battery leasing and charging services. VinFast Auto is based in Vietnam in Hai Phong City.

6. Indie Semiconductor Inc (NASDAQ:INDI)

Indie Semiconductor Inc among the best NASDAQ penny stocks to buy according to analysts. On February 23, UBS analysts lowered their price target on Indie Semiconductor Inc (NASDAQ:INDI) to $4.25 from $5 while reaffirming a Neutral rating on the stock. The price target reduction stemmed from the analysts lowering their valuation multiple for Indie Semiconductor from 18x to 16x.

With this multiple revision, the analysts lowered their EPS projection for Semiconductor Inc this year to $0.27 from $0.28. However, they raised their EPS estimates for 2028 onward.

In other news, Indie Semiconductor Inc (NASDAQ:INDI) released its Q4 2025 results on February 19. It delivered revenue of $58 million, which increased 8% sequentially and exceeded the midpoint of internal projections by $1 million. It posted an adjusted loss per share of $0.07. Looking ahead, the company projected Q1 2026 revenue in the band of $52 million – $58 million. This projection assumed a $21 million decline in revenue from Wuxi and a 20% sequential growth in core business revenue.

Based in Aliso Viejo, California, Indie Semiconductor Inc (NASDAQ:INDI) is a provider of chips and software for advanced driver assistance systems, humanoid robotics, and adjacent industrial applications.

5. Sealsq Corp (NASDAQ:LAES)

Sealsq Corp (NASDAQ:LAES) is among the best NASDAQ penny stocks to buy according to analysts. On February 20, Sealsq Corp (NASDAQ:LAES) announced that it had dropped plans to acquire Quobly, a French quantum computing startup. Instead, Sealsq said it would acquire a minority stake in Quobly. Sealsq is looking to make the investment by participating in Quobly’s Series A financing round.

This change in approach regarding Quobly comes on the back of Sealsq’s investment in another quantum chip startup, EeroQ. On February 19, Sealsq announced it had made a fresh strategic investment in EeroQ, adding to the investment it made in December last year. EeroQ is a US-based company developing chips for quantum computing architecture.

In other news, Sealsq Corp (NASDAQ:LAES) announced on February 23 that it was shifting its Geneva headquarters to the Pont-Rouge business district. It said that it would relocate in August 2026, and that Pont-Rouge offers low-carbon infrastructure, exceptional connectivity among other benefits. For Q1 2026, Sealsq projects revenue growth between 50% and 100% YoY.

Sealsq Corp (NASDAQ:LAES) is a provider of post-quantum computing hardware and software solutions. It is pioneering the development of post-quantum semiconductors, focusing on future-proof protection for sensitive data. It targets application areas like defense, health systems, automotive, and smart energy.

4. Esperion Therapeutics Inc (NASDAQ:ESPR)

Esperion Therapeutics Inc (NASDAQ:ESPR) is among the best NASDAQ penny stocks to buy according to analysts. On February 17, Esperion Therapeutics Inc (NASDAQ:ESPR) struck a deal with Alkem Laboratories regarding the sale of rival generic drugs. Specifically, Esperion got Alkem to agree that it would not sell generic versions of Esperion’s drugs NEXLETOL and NEXLIZET in the US market before April 19, 2040.

This deal with Alkem is part of Esperion’s ongoing campaign to delay generic competition for NEXLETOL and NEXLIZET. On January 11, Esperion announced that it had reached a deal restricting Dr. Reddy’s Laboratories and at least three other companies from introducing generic versions of its drugs before April 2040.

These generic drug agreements come at a time when Esperion has outlined its Vision 2040 plan. In this plan, Esperion is focused on becoming a leader in cardiometabolic disease therapies. Toward this end, the company aims to have at least five products on the market, build a robust pipeline that addresses various unmet medical needs, and forge strong international partnerships.

In 2025, Esperion reported preliminary U.S. net product sales of $156–$160 million, a 35%–38% increase over 2024, according to results released January 11.

Esperion Therapeutics Inc (NASDAQ:ESPR) is a biopharmaceutical company focused on developing medicines for cardiometabolic diseases and other rare conditions. The company has two drug products on the market, which are approved in more than 40 countries. The company was founded in 1998 and is headquartered in Ann Arbor, Michigan.

3. Neumora Therapeutics Inc (NASDAQ:NMRA)

Neumora Therapeutics Inc (NASDAQ:NMRA) is among the best NASDAQ penny stocks to buy according to analysts. Presenting at the Guggenheim Emerging Outlook: Biotech Summit 2026 on February 11, Neumora executives shared additional data from the Phase 1b study of drug candidate NMRA-511. Neumora is developing NMRA-511 as a treatment for agitation in Alzheimer’s disease patients.

At the summit, Neumora President Josh Pinto reiterated positive results from the study and emphasized what that study was designed to show. Notably, the study was meant to estimate effect size rather than statistical significance.

According to Pinto, the effect sizes were met with a favorable safety and tolerability profile. The executives believe this outcome provides a chance to advance to higher dose testing in 2026.

In other related news, on January 12, Leerink Partners launched coverage on Neumora Therapeutics (NASDAQ:NMRA) stock with an Outperform rating and a price target of $8. For this action, the firm pointed to Neumora’s diverse portfolio, noting that several programs have “a good chance of success.”

Based in Watertown, Massachusetts, Neumora Therapeutics Inc (NASDAQ:NMRA) is a clinical-stage biopharmaceutical company. It’s focused on developing treatments for brain diseases, neurodegenerative diseases, and neuropsychiatric disorders.

2. Beyond Air Inc (NASDAQ:XAIR)

Beyond Air Inc (NASDAQ:XAIR) is among the best NASDAQ penny stocks to buy according to analysts. On February 20, Beyond Air Inc (NASDAQ:XAIR) commented that it was pleased with a review article that recognized the potential of high-dose nitric oxide as a potential therapy for respiratory illnesses.

The peer-reviewed article appeared in a journal of the European Society of Intensive Care Medicine, offering a summary of data from 27 studies in hospitals and at-home settings.

The paper outlined the growing clinical evidence that supports safe administration of inhaled nitric oxide delivered at concentrations that exceed doses currently used for vasodilation.

Moreover, the paper outlined potential therapeutic opportunities in areas like hospital-acquired pneumonia, tuberculosis, ventilator-associated pneumonia, and post-viral fibrosis.

Beyond Air Inc has developed a nitric oxide generator and delivery platform called LungFit. According to Beyond Air’s earnings report released on February 13, sales from its first system, called the LungFit PH, soared 105% YoY to $2.2 million in the December quarter. The LungFit PH is for the treatment of term and near-term neonates with hypoxic respiratory failure.

Headquartered in Garden City, New York, Beyond Air Inc (NASDAQ:XAIR) is a medical device and biopharmaceutical company. It focuses on using nitric oxide to treat respiratory diseases and a range of other illnesses. Its nitric oxide generator and delivery system, LungFit PH, is approved for sale in the US, EU, and many other countries.

1. AtaiBeckley Inc (NASDAQ:ATAI)

AtaiBeckley Inc (NASDAQ:ATAI) is among the 13 best NASDAQ penny stocks to buy according to analysts. On February 26, AtaiBeckley Inc (NASDAQ:ATAI) reported topline results from a Phase 2a trial of its drug candidate EMP-01 (oral R-MDMA), which is aimed for treating social anxiety disorder. According to AtaiBeckley, the study met its primary objectives, with EMP-01 showing efficacy signals with a favorable safe profile. In the US alone, social anxiety disorder is estimated to affect 30 million adults.

The release of these study results come on the back of AtaiBeckley making a key executive appointment. On February 19, AtaiBeckley Inc (NASDAQ:ATAI) announced that it had appointed Michael Faerm as its chief financial officer. It said the appointment is effective March 9. As CFO, Faerm will lead AtaiBeckley’s financial operations, financial strategy, and capital market strategies.

The latest analyst action on AtaiBeckley came on January 13, where Cantor Fitzgerald analysts reiterated their Overweight rating on ATAI stock without assigning it a price target.  In reaffirming their bullish outlook for AtaiBeckley, Cantor Fitzgerald analysts pointed to the potential of the company’s BPL-003 compound, saying it has the potential to become a key player in tackling treatment-resistant depression. For this view, the analysts cited the compound’s compelling efficacy outcome in Phase 2a and Phase 2b studies.

Based in Berlin, Germany, AtaiBeckley Inc (NASDAQ:ATAI) is a clinical-stage drug developer with a deep focus on mental health. It has several potential drugs in various development stages. Its most advanced project is the BPL-003, which is aimed for treatment-resistant depression. The BPL-003 is in Phase 3 development stage. Its other projects include VLS-01 and EMP-01, which are both in Phase 2.

While we acknowledge the potential of AtaiBeckley Inc (NASDAQ:ATAI) 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 ATAI 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 11 Best Italian Stocks to Buy in 2026.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.