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.
7. Nano-X Imaging Ltd. (NASDAQ:NNOX)
Nano-X Imaging Ltd. (NASDAQ:NNOX) earns a place on our list of the most popular AI penny stocks to buy under $2.
With distribution partnerships and deployment agreements beginning to translate into measurable commercial traction, Nano-X Imaging Ltd. (NASDAQ:NNOX) appears to be marking its entry into a scaled, partner-driven rollout phase.
Nanox Impact Inc., the company’s subsidiary, penned a new U.S. distribution agreement on May 4, 2026, with NuvioDx LLC to accelerate deployment of its FDA-cleared Nanox.ARC medical imaging systems across multiple U.S. clinical sites. Nanox will leverage NuvioDx’s assistance in the deployment of the Nanox.ARC multi-source digital tomosynthesis system, designed to provide lower-cost 3D imaging with reduced radiation exposure compared with conventional CT imaging.
That system will provide access to medical imaging services to more people and will help hospitals operate more efficiently. At the same time, management expects the system’s enablement of improved diagnosis to lead to better patient outcomes.
The agreement will help Nano-X Imaging Ltd. (NASDAQ:NNOX) reach additional markets by relying on partners who already have strong local networks. That reinforces the company’s strategy to grow through a channel-led model.
A large-scale commercial agreement was signed by the company prior to that deal, reinforcing its shift toward partner-led commercialization and leveraging a wide-reaching sales network.
Nano-X Imaging Ltd. (NASDAQ:NNOX) partnered with Howard Technology Solutions to install 300 Nanox.ARC systems for over three years. The company expects to deploy 60 machines in year one across hospitals and the public sector.
Meanwhile, the performance in 2025 provided Nano-X Imaging Ltd. (NASDAQ:NNOX) with a solid foundation.
The last quarter of the year saw continued deployment progress, with approximately 36 systems in various stages of installation or use, and agreements already signed for approximately 360 machines to be purchased, with deployments expected over the next two to three years. On the back of that momentum, management stuck to its forecast of earning $35 million in 2026.
Nano-X Imaging Ltd. (NASDAQ:NNOX) engages in the development of medical imaging systems across Nanox.ARC, AI solutions, and radiology services. With those specialties, the company offers cloud-based diagnostics, AI tools, and radiology connectivity.
6. Datavault AI Inc. (NASDAQ:DVLT)
Datavault AI Inc. (NASDAQ:DVLT) earns a place on our list of the most popular AI penny stocks to buy under $2.
Datavault AI Inc. (NASDAQ:DVLT) appears to be accelerating its transformation, announcing a fresh $60 million raise, which follows a strategic acquisition and early-stage U.S. infrastructure rollout.
On May 3, 2026, Datavault AI Inc. (NASDAQ:DVLT) announced a registered direct offering of about 109.1 million shares of common stock, raising approximately $60 million. The offering is scheduled to close on May 5, 2026, through a definitive agreement with institutional investors.
With that move, Datavault AI Inc. (NASDAQ:DVLT) plans to invest in building its advanced computing network designed for AI and future quantum compatibility, including facility construction and equipment purchases. The funds will also be allocated toward day-to-day business expenses. The company’s CEO, Nathaniel T. Bradley, said the financing will help the company expand its AI-related systems and operations into more locations to address rising demand for high-performance AI compute capacity.
Even before this deal materialized, the company had already begun its expansion efforts.
On May 1, 2026, Datavault AI Inc. (NASDAQ:DVLT) added new advanced cybersecurity tools powered by AI to its business with an all-stock CAD $136.8 million acquisition of CyberCatch Holdings. The new suite of tools can simulate cyberattacks and track compliance with regulations in real time and includes security designed to tackle future quantum computing threats.
The acquired technology will be used throughout the company’s systems and will be embedded in its quantum-ready edge network—across the Information Data Exchange (IDE) and AI analytics ecosystem, systems will work together as one secure platform.
Thus, Datavault AI Inc. (NASDAQ:DVLT) appears to be building a system where it controls multiple layers spanning edge computing, data monetization, and cybersecurity, having already announced the rollout of its New York and Philadelphia edge network earlier in the year. With the new $60 million funding, management aims to actually enable the plan to move forward faster.
Datavault AI Inc. (NASDAQ:DVLT) focuses on delivering AI-driven data valuation and monetization solutions in Web 3.0. It combines acoustic technologies and data science platforms for spatial audio, analytics, and secure high-performance computing applications.
While we acknowledge the potential of DVLT 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 DVLT and that has 100x upside potential, check out our report about the cheapest AI stock.
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