In this article, we will list the 5 most popular AI penny stocks to buy under $2. Please visit 9 Most Popular AI Penny Stocks to Buy Under $2 if you’d like to see an extended list and the methodology behind it.
5. CXApp Inc. (NASDAQ:CXAI)
CXApp Inc. (CXAI:NASDAQ) earns a place on our list of the most popular AI penny stocks to buy under $2.
CXApp Inc. (NASDAQ:CXAI) is moving into its next phase, marked by an aggressive move into AI-powered, zero-touch workplace automation, after having recorded a sharp improvement in margins and a near-complete transition to subscription revenue.
For CXApp Inc. (NASDAQ:CXAI), FY2025 marked a major strategic shift toward a focus primarily on AI-based software delivered via subscriptions, under its Agentic Era vision. Almost all of the company’s revenue now comes from subscriptions, which accounted for 87% of total revenue in 2024. That marks a significant improvement in revenue quality and predictability, with profitability also strengthening. With improvements in cloud systems and reduced operational costs, the company expanded its GAAP gross margin to 87%.
Management eyes 2026 as an acceleration phase, which will be led by its CXAI Agentic AI platform powered by the BOND orchestration layer and CORTEX intelligence engine. With $11.1 million available in cash, the company plans to leverage that platform to enable autonomous, zero-touch workplace operations.
Management also cited its ongoing discussions with more than 20 large customers, growing presence among major global companies, and deployment of its technology across 11,000+ locations via TouchSource. These are early signs that the company can scale effectively.
Meanwhile, earlier product launches support this new strategy.
In March, CXApp Inc. (NASDAQ:CXAI) rolled out its Zero-Touch Campus Deployment platform, which leverages Integrated Workplace Management Systems (IWMS) integration to enable rapid AI-powered workplace setup. During the same month, the company launched the One Map Experience to replace fixed desk booking with real-time spatial intelligence. This way, the product may help companies optimize office space utilization and reduce waste.
CXApp Inc. (NASDAQ:CXAI) is a workplace experience solutions provider, focusing on services like desk and meeting room reservations, analytics, occupancy management, communications, event management, and indoor navigation.
4. Arbe Robotics Ltd. (NASDAQ:ARBE)
Arbe Robotics Ltd. (NASDAQ:ARBE) earns a place on our list of the most popular AI penny stocks to buy under $2.
Arbe Robotics Ltd. (NASDAQ:ARBE) is pivoting its commercialization focus toward defense, robotics, and off-road markets, beyond traditional automotive programs.
In its FY2025 results, Arbe Robotics Ltd. (NASDAQ:ARBE) said it is moving away from relying primarily on Western car manufacturers and expanding into new sectors that may offer more immediate demand. Specifically, sectors like defense, homeland security, and smart infrastructure are on management’s radar because of increasing interest and activity in those areas. At the same time, its collaboration with Nvidia adds credibility and capability.
For the year, Arbe Robotics Ltd. (NASDAQ:ARBE)’s revenue grew from $0.8 million in 2024 to $1.0 million, and net loss narrowed from $49.3 million to $45.2 million. At the same time, the year marked a strengthening of the company’s balance sheet, thanks to an $18.5 million capital raise and 15% cost reductions.
While management said it expects 2026 revenue to come in between $4 million and $6 million, it remains uncertain when the company will secure major deals with car manufacturers. The company’s earnings release was followed by an update from Canaccord, which cut its target on the stock from $1.75 to $1.25 and reiterated a “Buy” rating. The firm said the company is moving away from its original focus, which may result in delays in big automotive revenues.
Amid that broader optimism, Arbe Robotics Ltd. (NASDAQ:ARBE) also launched its 4D Imaging Radar for off-highway applications. With capabilities such as 360-degree environmental awareness and real-time processing, the product targets industries including agriculture, mining, and construction.
Arbe Robotics Ltd. (NASDAQ:ARBE) focuses on the development of radar and operating system technology for drones, automotive, and robotics markets. It offers 4D imaging radar solutions for autonomous vehicles.
3. Kaltura, Inc. (NASDAQ:KLTR)
Backed by its positioning in the artificial intelligence space and rising market attention, Kaltura, Inc. (NASDAQ:KLTR) ranks among the most popular AI penny stocks to buy.
With a global expansion of its agentic platform and a move to open-source core AI capabilities, Kaltura, Inc. (NASDAQ:KLTR) appears to be accelerating its push into the agentic AI stack.
First, Kaltura, Inc. (NASDAQ:KLTR) made an announcement on April 23, 2026, regarding its AI-powered agentic platform expansion across regions like Europe, Asia-Pacific, and Canada. With that move, the company successfully established dedicated regional infrastructure across Frankfurt, Ireland, Sydney, and Canada. That expansion aims to meet the data residency and compliance requirements of global enterprise customers.
The expansion further serves the company’s goal of making its full suite of agentic capabilities available to regulated industries. That availability narrows a critical gap: industries, such as financial services, healthcare, and government, were previously unable to deploy AI-powered tools without relying on local data infrastructure.
Meanwhile, a major development followed that move on May 4, 2026.
Kaltura, Inc. (NASDAQ:KLTR) has now made its suite of AI agent skills publicly available for free, allowing developers to use and modify the tools. With that, the company enabled AI coding assistants like OpenAI Codex, GitHub Copilot, Claude Code, and Cursor to create fully functional, real-world apps on Kaltura. The move benefits developers: development time is expected to decrease significantly, taking developers from concept to a working application in minutes rather than weeks. The system, designed around APIs with over 100 different services developers can plug into, positions the company both as a platform vendor and a foundational layer within the broader agentic AI ecosystem.
The move also aligns with the company’s global infrastructure expansion plan disclosed just two weeks earlier, extending that expanded capability to the developer community worldwide and bolstering its position within the broader agentic AI ecosystem.
Kaltura, Inc. (NASDAQ:KLTR) develops cloud television, education video platforms, and enterprise video platform services, while operating through the Enterprise, Education and Technology, and Media and Telecom segments.
2. Rekor Systems, Inc. (NASDAQ:REKR)
With notable exposure to artificial intelligence and growing investor interest, Rekor Systems, Inc. (NASDAQ:REKR) earns a spot on our list of the most popular AI penny stocks to buy.
Rekor Systems, Inc. (NASDAQ:REKR) is starting to convert execution into tangible momentum, evident from its first-ever cash-generating quarter. The company appears to be well-positioned for growth, as it reports narrowing losses and multi-year contract wins.
The year 2025, which proved to be transformative for Rekor Systems, Inc. (NASDAQ:REKR) according to management, saw revenue grow approximately 5% year-over-year with gross margin expansion from 49% in 2024 to 56%. As a result, the company was able to narrow the adjusted EBITDA loss by approximately 38%.
The fourth quarter, in particular, stood out, as operating cash flow turned positive for the first time in the company’s history.
That turnaround was also driven by strong operational progress, including the integration of the STS and ATD subsidiaries, the onshoring of Rekor Command engineering operations to the United States, and the full commercialization of the company’s three core products: Rekor Scout, Rekor Discover, and Rekor Command.
With those developments, Rekor Systems, Inc. (NASDAQ:REKR) remains focused on the transition from a development-heavy model to a product-first portfolio. At the same time, management said it expects the strategy to reduce R&D costs and improve customer responsiveness and service delivery.
A contract win followed that backdrop.
On May 4, 2026, Rekor Systems, Inc. (NASDAQ:REKR) secured a contract valued at $16.8 million over a multi-year term after its agreement with the Oklahoma District Attorneys Council was extended. As part of the agreement, the company will remain the technology partner for the state’s Uninsured Vehicle Enforcement Diversion Program.
Having served as the operational driver for the program since 2020, the company has supported Oklahoma’s improvement from having one of the nation’s worst uninsured driving rates to ranking 27th nationally.
That particular development unlocks a potentially significant long-term recurring revenue opportunity, which will be supported by the company’s strengthened financial health.
Rekor Systems, Inc. (NASDAQ:REKR), a technology company, delivers roadway intelligence and data-driven mobility insights. Its offerings include comprehensive, continuous, and real-time roadway intelligence that leverages artificial intelligence (AI), machine learning, and holistic data to deliver intelligent infrastructure for smart mobility.
1. SmartRent, Inc. (NYSE:SMRT)
With notable exposure to artificial intelligence and growing investor interest, SmartRent, Inc. (NYSE:SMRT) earns a spot on our list of the most popular AI penny stocks to buy.
The underpenetrated rental market is drawing management’s attention amid SmartRent, Inc. (NYSE:SMRT)’s stabilization of its financials and return to profitability.
FY2025 proved to be a transformative year for SmartRent, Inc. (NYSE:SMRT), featuring a return to positive adjusted EBITDA in the fourth quarter, driven by the first year-over-year quarterly revenue growth in seven quarters. With full-year revenue reaching $152.3 million and annual recurring revenue climbing 13% to $61.6 million, the company was able to generate $104.6 million in cash by the end of the year. Meanwhile, the company’s restructuring efforts proved rewarding: it reported zero debt by the end of Q4.
Amid that operational backdrop, SmartRent, Inc. (NYSE:SMRT) continued making strategic developments, unveiling a value-added reseller program on April 27, 2026.
The program aims to target the small- and mid-market rental segment as it comprises a largely untapped pool within the 40-million-unit U.S. rental landscape. Therefore, the move takes SmartRent, Inc. (NYSE:SMRT) far beyond the enterprise clients it had previously served.
With SKBM Smart Technology, a longtime installation partner and the program’s first reseller, SmartRent, Inc. (NYSE:SMRT) aims to provide much-needed localized engagement to smaller landlords, which supports the acceleration of the company’s Vision 2028 growth plan.
Amid those developments, analysts at Keefe Bruyette shared their outlook, expressing confidence in the company’s 2028 targets. As of March 11, 2026, the firm maintains a “Market Perform” rating with a price target of $2, up from $1.70.
SmartRent, Inc. (NYSE:SMRT), an enterprise smart home automation company, develops software and hardware that empower property owners, managers, and homebuilders to ensure the effective management, protection, and automation of daily operations.
While we acknowledge the potential of SMRT 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 SMRT and that has 100x upside potential, check out our report about the cheapest AI stock.
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