This article will discuss the 9 Most Popular AI Penny Stocks to Buy Under $2.

Paul Tudor Jones, the founder of Tudor Investment Corporation, is widely known for predicting and profiting from the 1987 Black Monday crash. That arguably makes him an investor who has experienced enough market cycles to tell when something is real.

On May 7, 2026, the billionaire investor, who boasts a net worth of $8.1 billion according to Forbes, spoke on CNBC’s Squawk Box. Leveraging his long-standing investing history, he compared ongoing AI advancements to Microsoft’s early software dominance in the 1980s and the internet boom of the mid-1990s. Highlighting years of productivity gains and sustained market upside in those two periods, he believes the current AI rally is only 50% to 60% complete and expects it to continue for another two years.

However, that optimism is not without its limitations. He acknowledged that AI stocks could see a sharp downturn once investor enthusiasm fades. Thus, he reminded investors that the AI boom may not last indefinitely. Yet he believes the rally will persist for now, with investor sentiment remaining strong toward the AI growth narrative.

With that background in mind, we will now turn to our list of the 9 most popular AI penny stocks to buy under $2.

Our Methodology

To curate our list for this article, we scanned financial media to identify AI stocks under $2. Next, we narrowed our list to stocks popular among elite hedge funds. Finally, we ranked these stocks in ascending order by the number of hedge funds bullish on each stock, according to Insider Monkey’s database as of Q4 2025. Our list includes companies with AI embedded in their core business, as well as AI- and data-driven innovation stocks. Those stocks are also popular among analysts and have significant upside potential.

Note: All data was extracted as of May 7, 2026.

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).

9. Guardforce AI Co., Limited (NASDAQ:GFAI)

With notable exposure to artificial intelligence and growing investor interest, Guardforce AI Co., Limited (NASDAQ:GFAI) earns a spot on our list of the most popular AI penny stocks to buy.

Guardforce AI Co., Limited (NASDAQ:GFAI), a sub-$2 AI stock, appears to be focusing on providing its investors with a transparent and measurable path toward recurring, high-margin AI-driven income. That was evident in its finalization of the MGAI Limited acquisition on March 17, 2026.

Through MGAI, an early and specialized player in AI for helping children with speech and rehabilitation needs in Asia, Guardforce AI Co., Limited (NASDAQ:GFAI) now has indirect majority control of the platform, with a large user base of over 110,000 patients. Furthermore, the platform encompasses a vast network of professionals, adding value and scalability.

Guardforce AI Co., Limited (NASDAQ:GFAI) expects the acquired business to grow revenue steadily each year, targeting $0.5 million in 2026, $1 million in 2027, and $1.5 million in 2028.

That deal came following the company’s efforts in 2025 directed toward building the required financial support. The performance in 2025 reflected the company’s transition from traditional services like logistics and security to AI-driven automation systems, while keeping operational execution and discipline intact.

Total revenue for the year crossed the $35 million mark, thanks to an 8.0% year-over-year (YoY) growth. That top-line growth was a result of strong growth of the company’s AI, Robotics-as-a-Service, and Smart Solutions segment, which expanded 15.3%.

Accordingly, Guardforce AI Co., Limited (NASDAQ:GFAI) saw EBITDA improve to a $2.48 million loss, its lowest level since 2022, following a 23.3% improvement. At the same time, the company’s R&D activity continued to increase, doubling to $837,719. With a cash balance of $24.55 million, management appears confident in its ability to accelerate its future AI development, strategic acquisitions, and talent recruitment.

Guardforce AI Co., Limited (NASDAQ:GFAI) delivers integrated security solutions. Its business segments include Secured Logistics, AI and Robotics Solutions, General Security Solutions, and Corporate and Others.

8. MicroVision, Inc. (NASDAQ:MVIS)

MicroVision, Inc. (NASDAQ:MVIS) earns a place on our list of the 9 most popular AI penny stocks to buy under $2.

MicroVision, Inc. (NASDAQ:MVIS) has begun demonstrating its shift from testing its technology to deploying it in real-world situations. That shift marks a critical inflection point for the company.

That momentum was visible in the company’s update on April 29, 2026, which discussed accelerating traction in security and defense markets. The company provided investors with a key signal of product validation by reporting repeat orders. After already using over 200 units, a customer placed a follow-on 200-unit order of Movia L sensors, expanding the product’s deployment. MicroVision, Inc. (NASDAQ:MVIS) reported a similar customer planning to deploy Iris sensors in active, combat environments.

Management tied those wins to the ongoing shift toward active deployment, including deployment in war zones. Thus, management pointed to an increasing need for lidar technology in high-stakes situations, including airborne awareness, terrain mapping, and autonomous navigation in environments where visibility is poor. Management also mentioned the company’s plans to enter areas like protecting critical facilities, with the goal of expanding its business opportunities.

The company’s execution prior to that development frames the backdrop that speaks to the ongoing momentum. MicroVision, Inc. (NASDAQ:MVIS) has moved beyond testing to large-scale, real-world usage under its Lidar 2.0 strategy.

On April 22, 2026, MicroVision, Inc. (NASDAQ:MVIS) reported confirmation of revenue-generating shipments across industries like mining and trucking, reflecting the production-stage adoption. Within the same update, management reported that its product, Iris sensors, can now detect objects beyond 250 meters in extreme environments.

Looking ahead, MicroVision, Inc. (NASDAQ:MVIS) appears well-positioned to accelerate commercialization and expand its business globally, thanks to the April 14, 2026, launch of its global partner program. The program will enable local partners to distribute and implement the company’s technology, reinforcing its overall shift from testing the technology to actually using and selling it at scale.

MicroVision, Inc. (NASDAQ:MVIS) focuses on developing laser beam scanning technology by integrating MEMS, lasers, optics, hardware, algorithms, and machine learning, and delivers lidar solutions for automotive ADAS, autonomous vehicles, and a range of industrial and non-automotive applications.