In this article, we will discuss Investors’ Stock Portfolio: Top 10 Penny Stocks To Buy.
Risk appetite, driven by artificial intelligence fervor, continues to drive sentiment in US equity markets. Small-cap and penny stocks are among the biggest beneficiaries of the ongoing enthusiasm for artificial intelligence stocks, as evidenced by the Russell 2000 outperforming its larger-cap peers by 16% year to date.
“The market is kind of muted at the surface level, but there is a lot going on under the hood, and that describes much of this year. There’s some massive dispersion in the whole AI infrastructure ecosystem. Markets could be in for one of these heated, melt-up rallies where the momentum keeps winning,” said Mike Dickson, head of portfolio management at Horizon Investments.
Overbought conditions are already flashing warning signs as participation in the rally remains narrow. The share of Russell 3000 constituents with a buy recommendation is sitting at 82%, slightly above the long-term average but below the 90% peak at the turn of the century, per Jefferies data.
Amid soaring risk appetite, with equity markets at an all-time high, penny stocks trading at highly discounted valuations are turning out to be some of the biggest winners. Likewise, the stocks offer a way to diversify an investment portfolio away from their larger peers, which are currently trading above historical norms.
Our Methodology
To identify Top Investors’ Stock Portfolio: Top 10 Penny Stocks To Buy, we screened for stocks trading under $5 per share that have outperformed the S&P 500 10% year to date. Further, we trimmed the list to focus on penny stocks with upside potential of more than 20%. We also assessed institutional sentiment using Q1 2026 hedge fund holdings data from Insider Monkey. Finally, we ranked the list in ascending order based on the number of hedge funds holding stakes.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Top Investors’ Stock Portfolio: Top Penny Stocks To Buy
10. HIVE Digital Technologies Ltd. (NASDAQ:HIVE)
Share Price: $4.54
Stock Upside Potential: 39.21%
Year to Date Gain: 74.36%
Number of Hedge Fund Holders: 9
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is one of the top penny stocks to buy in investors’ stock portfolio. On June 1, co-founder and executive chairman Frank Holmes reiterated that 2026 is turning out to be a defining year for HIVE Digital Technologies Ltd (NASDAQ:HIVE).
The sentiment comes as the company becomes the first publicly traded Bitcoin miner to diversify its footprint by investing in GPU cloud computing and AI infrastructure. In addition, the company has expanded its platform, resulting in a significant increase in Bitcoin mining hashrate from 6.5 EH/s to 25.1 EH/s and a growing contracted HPC ARR to $35 million.
The significant hashrate increase resulted in solid full-year fiscal 2026 results, with revenue up 158% to $297.8 million and gross operating margin increasing 329% to $107.9 million. Adjusted EBITDA reached $72.9 million for the full fiscal year 2026. Digital currency revenue was up 164% in the year to $278.3 million as HIVE Digital Technologies mined 2,885 Bitcoin, up 104%. High-performance computing (HPC) revenue was up 94% year over year to $19.5 million.
“Looking ahead, HIVE sits at the intersection of two powerful technology trends: Bitcoin and AI. Our mandate remains unchanged: disciplined, high-ROIC growth powered by 100% green energy. We believe the investments we have made over the past several years position HIVE for one of the most significant growth periods in our history,” Holmes said.
HIVE Digital Technologies Ltd. (NASDAQ:HIVE) is a digital infrastructure company that builds and operates green-energy-powered data centers for cryptocurrency mining and high-performance computing (HPC) to support Artificial Intelligence (AI) workloads.
9. indie Semiconductor, Inc. (NASDAQ:INDI)
Share Price $4.93
Stock Upside Potential: 17.98%
Year to Date Gain: 31.62%
Number of Hedge Fund Holders: 17
indie Semiconductor, Inc. (NASDAQ:INDI) is one of the top penny stocks to buy in investors’ stock portfolio. On May 12, Benchmark reiterated its Buy rating on indie Semiconductor, Inc. (NASDAQ:INDI) with an $8 price target. The positive stance is in response to the company announcing it has reached an agreement to acquire ams OSRAM’s fabless CMOS image sensor business for €40 million.
Under the terms of the agreement, Indie Semiconductor is to pay €35 million in cash at closing of the deal, and the additional €5 million vendor note to ams OSRAM, due 2 years after closing. With the acquisition, the company is to gain access to intelligent high-performance CMOS image sensors for use in industrial automation and physical artificial intelligence applications.
The product portfolio up for grabs aligns with Indie Semiconductor’s ADAS sensing solutions. The products will also strengthen the company’s multimodal sensing capabilities across radar vision and LiDAR. Consequently, the company will be well equipped to pursue opportunities in the image sensor market, forecast to reach $40 billion by 2030.
indie Semiconductor, Inc. (NASDAQ:INDI) is an automotive technology company that designs mixed-signal systems-on-chip (SoCs) and software platforms for connected cars and autonomous vehicles. They specialize in advanced driver assistance systems (ADAS), in-cabin user experiences, and vehicle electrification.
8. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Share Price: $2.95
Stock Upside Potential: 22.03%
Year to Date Gain: 12%
Number of Hedge Fund Holders: 21
GoodRx (NASDAQ:GDRX) is one of the top penny stocks to buy in investors’ stock portfolio. On May 27, GoodRx (NASDAQ:GDRX) affirmed its commitment to offering free and low-cost generic medications to the public.
The company launched GoodRx Companion, a new $14.99-a-month subscription service that helps consumers save on routine healthcare costs. The service combines lower drug prices with more affordable access to care and services. The service is tailored for patients managing chronic conditions who take multiple medications.
GoodRx Companion offers prescription savings on more than 200 common generic medications, as well as savings on cleanings, exams, X-rays, crowns, and other dental services. The service will also charge $19 on telehealth visits for common needs such as UTIs, skin care, flu, and other conditions.
The launch of Companion affirms GoodRx’s subscription strategy while creating another recurring revenue base. The subscription service also enables the company to engage consumers beyond individual prescription transactions.
GoodRx Holdings, Inc. (NASDAQ:GDRX) is a free digital platform and mobile app that helps Americans compare prescription medication prices and provides discount coupons to use at pharmacies nationwide. It functions primarily as a search engine for drug prices, allowing users to save money whether they are uninsured, underinsured, or have high insurance deductibles.
7. Maravai LifeSciences Holdings Inc. (NASDAQ:MRVI)
Share Price: $4.83
Stock Upside Potential: 17.32%
Year to Date Gain: 39.71%
Number of Hedge Fund Holders: 26
Maravai LifeSciences Holdings Inc. (NASDAQ:MRVI) is one of the top penny stocks to buy in investors’ stock portfolio. On May 7, Maravai LifeSciences Holdings Inc. (NASDAQ:MRVI) affirmed a strong start to the year, driven by strong demand in the core TriLink base business and strength in the higher-margin portfolio.
Increased focus on cost structure and operational efficiency helped the company achieve robust revenue growth and meaningful EBITDA expansion in the first quarter. Revenue in the first quarter was up 40.5% to $65.8 million, driven by a 65.1% increase in TriLink revenue at $47.5 million. Maravai LifeSciences Holdings benefited from high-volume CleanCap orders for commercial-phase COVID vaccine programs.
Net loss in the quarter shrank to $6.4 million, compared with $52.9 million in the same quarter last year. The company also bounced back to adjusted EBITDA of $20.3 million, compared with a loss of $10.5 million in the same quarter last year. For the full year, the company expects revenue to range from $205 million to $215 million, up from its previous guidance of $200 million to $210 million.
Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) is a global life sciences company that provides critical reagents and services to researchers and biotech innovators to enable the development of drug therapies, vaccines, cell and gene therapies, and diagnostics.
6. Aclaris Therapeutics, Inc. (NASDAQ:ACRS)
Share Price: $4.63
Stock Upside Potential: 130.38%
Year to Date Gain: 50.69%
Number of Hedge Fund Holders: 28
Aclaris Therapeutics Inc. (NASDAQ:ACRS) is one of the top penny stocks to buy in investors’ stock portfolio. On May 8, Stifel reiterated a Hold rating on Aclaris Therapeutics Inc. (NASDAQ:ACRS) and increased the price target to $4 from $3.
The price target hike underscores the research firm’s optimism about the company’s multi-targeting approaches and its novel immunology biology. The company has made significant progress in developing best-in-class compounds to address various immunological diseases. For starters, it has delivered positive results in the Phase 1a SAD/MAD trial of bispecific antibody ATI-052.
Aclaris is also anticipating top-line results in ongoing Phase 1b proof-of-concept trials or ATI-052. The candidate therapy continues to show potential in the treatment of various atopic immunologic and respiratory diseases. The company is also pursuing the Lichen Planus Development Strategy for ATI-2138, a Potent and Selective Investigational Inhibitor of ITK and JAK3.
Amid pipeline development, Aclaris generated $2 million in revenue in the first quarter, up from $1.5 million in the prior quarter, driven by higher royalties under the Lilly and Sun Pharma license agreements. However, the company incurred a net loss of $19.8 million, compared with $15.1 million in the same quarter last year.
Aclaris Therapeutics, Inc. (NASDAQ:ACRS) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes innovative drug candidates for immuno-inflammatory diseases and dermatological conditions.
While we acknowledge the potential of ACRS 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 ACRS and that has 100x upside potential, check out our report about the cheapest AI stock.
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