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7 High Growth Penny Stocks That Are Profitable in 2025

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In this article, we will look at the 7 High-Growth Penny Stocks That Are Profitable in 2025.

On July 15, Riverwater Partners’ Founder and CEO released his quarterly letter and small-cap strategy, highlighting a surprising paradox. He noted that despite global trade disruptions and geopolitical tensions, the markets are showing resilience. The quarter was marked by some unusual trade disruptions as the US took military action against Iran, causing oil prices to drop dramatically. Moreover, the tariff shock on the Liberation Day also caused a sudden market shock, but it was postponed due to higher volatility.

In such turmoil, common sense suggests that markets should drop; however, the global equity and bond markets mostly rallied to near or record highs. An exception was the US small-cap stocks, which lagged. Riverwater believes this underperformance isn’t supported by fundamentals and remains confident in the small-caps future. The CEO noted that AI tools are expected to democratize automation and coding, benefiting small companies more over time. Although big names currently lead the AI infrastructure, the next wave of AI is expected to favour the small-caps as they would gain access to powerful tools once limited to giants.

Riverwater Partners finds small caps to be attractively valued and noted that the segment has outpaced large-cap revenue growth over the past decade. The main hurdle is investor sentiment and preference for large-caps with high price multiples. The firm expects this trend to reverse, unlocking strong returns for quality small-cap investments.

With that, let’s take a look at the 7 high-growth penny stocks that are profitable in 2025.

A portfolio manager studying various stocks and other securities on a tablet.

Our Methodology

To curate the list of 7 high-growth penny stocks that are profitable in 2025, we used the Finviz stock screener, Yahoo Finance, Seeking Alpha, and CNN. Using the screener, we aggregated a list of penny stocks (trading below $5) with year-over-year sales growth of more than 20% and positive TTM net income. Next, we cross-checked the sales growth from Seeking Alpha and the TTM net income from Yahoo Finance. Lastly, we ranked the stocks in ascending order of the analyst upside potential sourced from CNN. For instances where analyst upside potential was not available, we used the number of hedge fund holders as of Q1 2025 as our ranking metric. Please note that the data was recorded on July 24, 2025.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

7 High-Growth Penny Stocks That Are Profitable in 2025

7. TOYO Co., Ltd. (NASDAQ:TOYO)

Price: $3.59

Year-Over-Year Sales Growth: 183.69%

TTM Net Income: $33.41M

Number of Hedge Fund Holders: 1

Analyst Upside Potential: N/A

TOYO Co., Ltd. (NASDAQ:TOYO) is one of the High Growth Penny Stocks That Are Profitable in 2025. On May 15, TOYO Co., Ltd. (NASDAQ:TOYO) provided updates to its financial report for 2024.

Management noted that it had filed its full annual report with the SEC on May 12, 2025. The company reported its operating expenses growing sharply from $4.7 million in 2023 to $13.0 million in 2024. Moreover, the selling and marketing expenses also rose from $0.02 million a year ago to $1.6 million in 2024. This was due to the higher freight, handling, and sales commissions.

On the bright side, TOYO Co., Ltd. (NASDAQ:TOYO) significantly grew its net income from $9.9 million in 2023 to $40.5 million. As a result, the EPS also went up to $1.09 from $0.24 a year ago. The company had cash and restricted cash of around $17.1 million at the end of 2024, which is slightly less than the $19.0 million at the end of 2023.

TOYO Co., Ltd. (NASDAQ:TOYO) is a solar solutions company that designs, manufactures, and sells solar cells and photovoltaic modules.

6. Tuya Inc. (NYSE:TUYA)

Price: $2.58

Year-Over-Year Sales Growth: 27.63% 

TTM Net Income: $19.56M

Number of Hedge Fund Holders: 16

Analyst Upside Potential: 26.23%

Tuya Inc. (NYSE:TUYA) is one of the High Growth Penny Stocks That Are Profitable in 2025. On May 23, Tuya Inc. (NYSE:TUYA) co-hosted The Global Telecom AIoT Summit 2025 along with T3 Technology and Skyworth in Bangkok.

The event’s theme was “New Era of Intelligence for All Industries,” and its goal was to promote smart solutions across industries and speed up digital transformation in Southeast Asia. The company’s Co-Chairman and President, Leo Chen, spoke about his decade-long dedication to AIoT. He noted that Thailand’s “Digital Thailand” plan closely matches Tuya Inc. (NYSE:TUYA)’s vision to advance global intelligence. Moreover, the company also unveiled the Southeast Asia Digital and AI Transformation Joint Initiative at the summit. This initiative promotes cooperation among governments, businesses, and research institutions to expand AI use and build a prosperous digital future.

Tuya Inc. (NYSE:TUYA) is a global IoT cloud platform service provider that enables businesses and developers to create smart IoT devices and applications.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

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1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.