7 Best Augmented Reality Penny Stocks to Buy

In this article, we will look at the 7 Best Augmented Reality Penny Stocks to Buy.

Grand View Research values the global augmented reality, or AR, market at $120.21 billion in 2025, and anticipates this value to cross the $1 trillion mark in eight years. That translates to a CAGR of 29.7% from 2026 to 2033. The primary engine of this growth, the analysis shows, is growing technological advancements in AR hardware and software. This growth will span most industries, including healthcare, defense, manufacturing, education, and retail.

Another analysis by Precedence Research identifies the convergence of AR with artificial intelligence as the single most important driver of growth in this industry going forward. Interestingly, this convergence is already happening, and it is substantial. For instance, Reuters said in a March 31 report that global smart glasses shipments reached 9.6 million units in 2025, and cited International Data Corporation research director Ramon Llamas who projected 13.4 million units to ship in 2026. Smart glasses use AR technology to overlay digital information onto the wearer’s real-world view.

In this light, some executives of leading smart glasses companies believe that the entire AR industry is approaching a smartphone-like inflection point. At this point, the executives argue, virtually every eyewear would eventually become AI-powered. One executive disclosed that their smart glasses sales had tripled year over year in Q4 2025. They called the smart glasses some of the fastest-growing consumer electronics in history.

That industry confidence is reflected in how Wall Street has begun to position around AR stocks. For instance, Bank of America Securities internet research analyst Justin Post told CNBC that the tech industry’s decisive shift toward AR glasses marks a genuine investment watershed. “At this point, the [smart] glasses are going to be much more impactful and more mass market,” Post said, noting that properly integrated AI could make smart glasses a more powerful portal for the technology than even smartphones.

For investors willing to look beyond the household names dominating financial headlines, AR-focused micro-cap stocks are one such avenue worth examining. With that backdrop in mind, this article identifies 7 AR penny stocks that investors may want to consider.

Our Methodology

To identify the 7 Best Augmented Reality Penny Stocks to Buy, we used Finviz and Yahoo Finance screeners and conducted a comprehensive review of AR-focused ETFs, such as the Roundhill Ball Metaverse ETF and the Innovator Deepwater Frontier Tech ETF, to curate an initial list of US-listed AR and AR-adjacent companies. We filtered for stocks trading at below $5 as of May 18, and those in which institutions have substantial interest, based on Q4 2025 13F filing data in Insider Monkey’s database. We also ensured that the stocks have positive upside potential as of May 18, and, finally, ranked them in ascending order by upside.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Best Augmented Reality Penny Stocks to Buy

7. Perfect Corp. (NYSE:PERF)

Stock Upside: 16.86%

Stock Price: $1.69

Number of Hedge Fund Holders: 10

Perfect Corp. (NYSE:PERF) is one of the best augmented reality penny stocks to buy. On May 13, Perfect Corp. (NYSE:PERF) integrated a free conversational AI assistant called “Ask AI” into its YouCam API developer platform. The objective, the company said, is to make technical documentation more accessible to a wide range of users.

YouCam API is Perfect Corp.’s developer product that lets brands embed AI and AR capabilities directly into their websites and mobile apps. These capabilities include image and video editing tools, AI-powered skin analysis, and virtual try-on experiences.

The company said that the core problem Ask AI addresses is that working with sophisticated API platforms has historically required users to wade through dense, mostly English-language technical documentation. This complexity creates real friction for non-engineering stakeholders such as product managers, brand teams, and business planners who need to assess capabilities or integration feasibility without a developer’s help, noted Perfect Corp.

To that end, Ask AI lets any user type questions in their own language and get plain-language answers pulled directly from the API documentation. For instance, the tool can surface and explain implementation steps, code examples, recommended settings, and troubleshooting guidance. The tool is available at no additional cost to all YouCam API users.

Perfect Corp. (NYSE:PERF) is a beauty and fashion technology company that provides augmented reality and artificial intelligence solutions for the cosmetics, skincare, fashion, and jewelry industries. Its AR technology enables virtual try-ons, skin diagnostics, and personalized beauty experiences through mobile apps and integrated e-commerce tools.

6. 3D Systems Corporation (NYSE:DDD)

Stock Upside: 32.45%

Stock Price: $3.02

Number of Hedge Fund Holders: 17

3D Systems Corporation (NYSE:DDD) is one of the best augmented reality penny stocks to buy. On May 13, Craig-Hallum analyst Greg Palm raised his price target on 3D Systems Corporation (NYSE:DDD) from $2.50 to $3.00, while keeping his Hold rating intact. The analyst cited early but tangible signs that the company is turning profitable after years of steep losses.

Palm’s upgrade followed 3D Systems’ Q1 2026 earnings report, released on May 11, which showed the company had posted revenue of $95.5 million, an 11% year over year increase on an adjusted basis. The quarter’s adjusted EBITDA was positive at $2.1 million, which is a massive swing compared to the loss of nearly $24 million in Q1 2025.

The company explained in the earnings release that the revenue growth happened all across its segments. The Healthcare Solutions segment led the way with a 21% revenue growth to $50.1 million. This means the segment is now ahead of Industrial Solutions as the company’s larger segment for the first time. The company attributed this growth to strong demand for dental materials and orthopedic medical implants.

3D Systems also noted that it undertook a substantial cost-cutting program during the quarter, which enabled non-GAAP operating expenses to fall 35% year over year after adjusting for divestitures. Non-GAAP gross margin improved to 36.1% (up 6 percentage points), and management said it has already locked in more than $55 million in annualized cost savings.

Regardless, Palm, the Craig-Hallum analyst, noted that these results were an outlier. For that reason, the stock did not react with the positive margin it should have. The analyst said he is awaiting more evidence of a sustained trend before adopting a more bullish stance.

On May 11, 3D Systems announced that ROE Dental Laboratory has expanded its fleet of NextDent® 300 3D printers to boost digital denture production, tripling capacity and meeting strong clinician demand for faster turnaround, improved fit, and enhanced aesthetics.

3D Systems Corporation (NYSE:DDD) is an additive manufacturing and industrial 3D printing company. Its technologies can support immersive visualization, simulation, and interactive 3D applications used in AR-enabled workflows, including medical training, surgical planning, product design, and engineering visualization.

Click to continue reading and see the 5 Best Augmented Reality Penny Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.