12 Best NASDAQ Penny Stocks to Buy According to Hedge Funds

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10. iQIYI, Inc. (NASDAQ:IQ)

Price as of September 12: $2.61

Number of Hedge Fund Holders: 13

iQIYI, Inc. (NASDAQ:IQ) is one of the best NASDAQ penny stocks to buy according to hedge funds. On September 10, iQIYI, Inc. (NASDAQ:IQ) reported that it is set to launch ‘Peter Pay x iQIYI AI Theater.’

iQIYI announced a pioneering initiative with Academy Award-winning Cinematographer and Director Mr. Peter Pau to launch the AI storytelling lab. The program has a theme of ‘Your Vision, The Next Dimension,’ which aims to empower modern professional creators to gain skills in AI-powered filmmaking. The company’s focus is to further strengthen its leadership in advancing future storytelling.

“AI is reshaping every facet of content creation at iQIYI, redefining the very way stories are told. In collaboration with Peter, we are launching the AI Storytelling Lab to nurture top talents in AI-driven storytelling, inspire bold and original works, and empower outstanding creators with the best platforms and opportunities to stand out and shape the future of entertainment,” said Mr. Xiaohui Wang, Chief Content Officer of iQIYI.

The AI storytelling lab invites participants to produce and submit AI-driven films that are at least 15 minutes long. Creators can submit their ideas and initial scripts from September 10 through October 31, 2025. Thirty teams will be shortlisted for an intensive one-week residency, receiving direct mentorship from a team of expert instructors led by Peter. Out of those, only 15 will make it to the production slate, with iQIYI offering support for production, distribution, promotion, and continued mentorship from Peter. The participating creators will be eligible for a 30% share of net profits.

iQIYI, Inc. (NASDAQ:IQ) offers online entertainment video services in China. The company provides various products and services, including online video, online games, online literature, comics, and others.

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