In this article, we will look at the Top 10 Hot Penny Stocks to Buy Now.
On April 28, Steven Wieting, CIO Group chief investment strategist, appeared on CNBC’s ‘Closing Bell Overtime’ to talk about the impact of various headwinds and tailwinds on the markets and U.S. economy.
He was of the opinion that what is going on in the AI trade and software hardware is really not dependent on the cyclical performance of the economy. These capex plans, whether they pan out well or not, are funded, and the bets are on the table. We are thus going to see things move very independently from what is going on in consumer spending, travel spending, industrial activity, and especially Europe and Asia’s cyclical companies.
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Wieting further stated that the global market is increasingly feeling the wear and tear of that in an observable way, and the longer this stays shut, we are eventually going to hit binding constraints. He believes that it is one thing to pay for something, but to move from one place to another requires oil and energy, and shortages in that domain lead to binding constraints.
With these broader market trends in view, let’s look at the top hot penny stocks to buy now.
Our Methodology
We used the Finviz stock screener to identify the 50 best-performing stocks under $5 over the last month, considering companies that have recently reported noteworthy developments likely to impact investor sentiment. We then chose the top 10 stocks most popular among hedge funds as of Q4 2025, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on May 3.
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).
Top 10 Hot Penny Stocks to Buy Now
10. U Power Limited (NASDAQ:UCAR)
U Power Limited (NASDAQ:UCAR) is one of the top 10 hot penny stocks to buy now. U Power Limited announced on April 27 the signing of an agreement with Guofu Hydrogen Energy (Hong Kong) Development Co., Limited, and Cloud Digital Chain Limited for the establishment of a strategic U Power-controlled joint venture entity aimed at providing comprehensive AI-driven energy management solutions for Intelligent Data Centers. They are expected to be launched initially in the Thailand market, and are anticipated to gradually expand into global markets.
U Power Limited further reported that the terms of the agreement stipulate that the company will hold a majority equity stake in the JV, with the parties expecting to provide initial capital to establish and incorporate one or more subsidiaries in the Hong Kong SAR on or before July 31, 2026. Management further reported that the JV is anticipated to commence operations within 90 days thereafter.
U Power Limited also stated that with the establishment of the JV, it aims to expand its business scope into hydrogen energy services, bolster market presence in Thailand, allow expansion in other markets, and enhance its positioning as a provider of AI-integrated solutions.
U Power Limited is a holding company involved in the provision of vehicle sourcing. It also brokers sales of vehicles between buyers and automobile wholesalers, including individual customers and small and medium-sized vehicle dealers.
9. Aterian, Inc. (NASDAQ:ATER)
Aterian, Inc. (NASDAQ:ATER) is one of the top 10 hot penny stocks to buy now. Aterian, Inc. (NASDAQ:ATER) announced on April 28 separate transactions related to its previously announced Strategic Alternative Process. It stated that it signed a definitive agreement with Trademark Global, LLC for the sale of assets associated with its marquee brands: Mueller Living, hOmeLabs, PurSteam, Squatty Potty, Photo Paper Direct, and Healing Solutions. Headquartered in Lorain, Ohio, and founded in 1999, Trademark Global is a privately held, data-driven consumer brand and e-commerce supply chain platform.
The company further stated that under the terms of the purchase agreement for the Asset Sale, Trademark will acquire the global business of sourcing, marketing, and selling products under these labels, in addition to the applicable brand’s assets, which include inventory, and assuming certain liabilities. Trademark is also anticipated to onboard a majority of Aterian, Inc.’s employees who are dedicated to supporting these brands. Management reported that the base purchase price for the Asset Sale is $18 million in cash, adding that it is subject to adjustment for net working capital and other transaction-related costs.
Aterian, Inc. is a technology-enabled consumer products company. Its product categories include kitchenware, home and kitchen appliances, environmental appliances, beauty-related products, and consumer electronics.
8. Greenlane Holdings, Inc. (NASDAQ:GNLN)
Greenlane Holdings, Inc. (NASDAQ:GNLN) is one of the top 10 hot penny stocks to buy now. Greenlane Holdings, Inc. (NASDAQ:GNLN) announced on April 27 that it received notice from The Nasdaq Stock Market LLC informing it that it has regained compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). Nasdaq confirmed that Greenlane Holdings, Inc. is now in compliance with all applicable continued listing standards, which is why the company’s Class A common stock will continue to be listed and traded on the Nasdaq Capital Market under the symbol “GNLN.”
Jason Hitchcock, Chief Executive Officer, stated that management remains confident in the company’s Berachain-focused digital asset treasury strategy and its ability to create long-term value for stockholders, which is further reinforced by the previously announced decision of members of the Board to voluntarily extend the lock-up periods on their warrants.
Greenlane Holdings, Inc. is involved in the distribution and supply of vaporization products and accessories for vape shops and dispensaries. The company’s operations are divided into the Consumer Goods and Industrial Goods segments, and its brands include Pollen Gear, Higher Standards, Groove, Marley Natural, and Aerospaced.
7. Hyperfine, Inc. (NASDAQ:HYPR)
Hyperfine, Inc. (NASDAQ:HYPR) is one of the top 10 hot penny stocks to buy now. BTIG initiated coverage of Hyperfine, Inc. (NASDAQ:HYPR) with a Buy rating on April 29, setting a price target of $2 and telling investors in a research note that the company’s Swoop System enables point-of-care brain MRI at the bedside, expanding access to MRI imaging through the elimination of the need for a shielded room, specialized staff, and patient transport. It further stated that the next-generation Swoop V2, cleared in May 2025, paired with the 11th-generation Optive AI software release in December 2025, offers a significant step forward in image quality and clinical utility.
The rating update came the same day Hyperfine, Inc. announced that AIIMS New Delhi has initiated clinical use of the Swoop® portable MRI system, making it the first hospital in India to deploy bedside MRI for routine clinical use. This marks a significant milestone for neurological care across the country.
Hyperfine, Inc. is a medical device development company involved in the provision of imaging and monitoring through magnetic resonance imaging to revolutionize healthcare for people. The company also develops imaging of health conditions through its Swoop portable magnetic resonance imaging.
6. Vince Holding Corp. (NASDAQ:VNCE)
Vince Holding Corp. (NASDAQ:VNCE) is one of the top 10 hot penny stocks to buy now. Noble Capital lifted the price target on Vince Holding Corp. (NASDAQ:VNCE) to $6.50 from $5.50 on April 16, reaffirming an Outperform rating on the shares. The rating update came after the company reported a “strong” fiscal Q4 to cap a “solid year.” The firm further told investors that management guided to 3%-6% revenue growth and EBITDA margin expansion in FY26, which supports upward estimate revisions.
Vince Holding Corp. announced the financial results for fiscal Q4 and full year ended January 31, 2026, on April 15, reporting that net sales for the quarter rose 4.7% to $83.7 million. It further reported that net loss for fiscal Q4 was $3.6 million, including a $6 million charge related to Saks reorganization. Adjusted EBITDA for the quarter reached $4.5 million. The company also stated that net sales for fiscal year 2025 rose 2.2% to $300.0 million, while net income for the year was $6.4 million, with adjusted EBITDA of $15.1 million.
Vince Holding Corp. manufactures, designs, and sells luxury apparel and accessories. Its operations are divided into the following segments: Wholesale, Direct-to-Consumer, and Rebecca Taylor and Parker.
5. InflaRx N.V. (NASDAQ:IFRX)
InflaRx N.V. (NASDAQ:IFRX) is one of the top 10 hot penny stocks to buy now. InflaRx N.V. (NASDAQ:IFRX) announced on April 28 that it received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC on April 27, informing management that the company regained compliance with Nasdaq’s minimum bid price requirement set forth under Nasdaq Listing Rule 5450(a)(1). The notice stated that InflaRx N.V. regained compliance with the Minimum Bid Price Requirement because the closing bid price of its ordinary shares has been $1.00 per share or greater for 10 consecutive business days, from April 13, 2026, to April 24, 2026, adding that the matter is now closed.
In a separate development, Oppenheimer assumed coverage of InflaRx N.V. with an Outperform rating on April 24, bringing the price target on the stock to $5 from $7 and stating that it considers izicopan to be the company’s main value driver. Izicopan is an oral C5aR inhibitor with a differentiated pharmacological profile vs. avacopan.
InflaRx N.V. is a clinical-stage biopharmaceutical company involved in the discovery and development of inhibitors of the complement activation factor known as C5a and its receptor C5aR. The company’s primary product candidate is Vilobelimab.
4. Soluna Holdings, Inc. (NASDAQ:SLNH)
Soluna Holdings, Inc. (NASDAQ:SLNH) is one of the top 10 hot penny stocks to buy now. Soluna Holdings, Inc. (NASDAQ:SLNH) announced on May 1 that it received a notice from The Nasdaq Stock Market LLC informing the company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). It regained compliance with the Listing Rule as the company’s shares maintained a minimum closing bid price of $1.00 per share or greater from April 14, 2026, to April 29, 2026, which is why Nasdaq has closed the matter. Management reported that Soluna Holdings, Inc. is now in full compliance with all Nasdaq continued listing requirements, with the company’s stock remaining listed and trading on the Nasdaq Capital Market under the ticker “SLNH.”
In a separate development, Soluna Holdings, Inc. announced a partnership with Sazmining on April 28, aimed at supporting Sazmining’s second U.S.-based mining operation with an initial 3 MW deployment at Soluna’s Project Dorothy 1B. Management further stated that Sazmining is a pioneer in Bitcoin Mining as a Service (BMaaS), and the partnership holds the potential to scale over time, subject to customer demand and facility availability.
Soluna Holdings, Inc. develops and operates data centers utilizing renewable energy, including excess or curtailed power, to support energy-intensive computing applications. It engages in cryptocurrency mining, offering data center hosting services for third-party customers. The company’s operations are divided into the following segments: Cryptocurrency Mining, Data Center Hosting, and High-Performance Computing Services.
3. NN, Inc. (NASDAQ:NNBR)
NN, Inc. (NASDAQ:NNBR) is one of the top 10 hot penny stocks to buy now. NN, Inc. (NASDAQ:NNBR) announced on April 30 that it has been notified that its CARES Act refund of >$10 million has been processed for payment. Chief Executive Officer of NN, Inc., Harold Bevis, stated that the company is growing at a “historically high rate” because of the success of its growth programs and strength in certain markets. Bevis added that NN, Inc. borrowed $10 million in Q1 2026 to fund certain growth areas with both capital equipment and working capital, adding that this US tax refund will more than offset that borrowing, offering the company more room to grow.
NN, Inc. stated that the above information is based on information received from the IRS, and that the company is finalizing its financial results for the quarter ended March 31, 2026, and will update its financial outlook on May 6, 2026.
NN, Inc. is involved in the design and manufacture of high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. The company’s operations are divided into the Mobile Solutions and Power Solutions segments.
2. Kopin Corporation (NASDAQ:KOPN)
Kopin Corporation (NASDAQ:KOPN) is one of the top 10 hot penny stocks to buy now. On April 28, Stifel reinstated coverage of Kopin Corporation (NASDAQ:KOPN) with a Buy rating and set a price target of $5.50. It told investors in a research note that the company has unveiled a MicroLED-based optical interconnect architecture that is intended to replace traditional copper wiring in high-performance AI data centers, adding that it also disclosed a $15M initial development order from its partner Fabric.AI. Stifel believes that this new development contract solidifies Kopin Corporation’s revenue outlook for the year, as it was not included in their initial outlook.
In another development, Kopin Corporation received a rating update from Lake Street on April 29, lifting the price target on the stock to $5 from $4 and reaffirming a Buy rating on the shares. The rating update came after the company announced a partnership with Fabric.AI for the development of MicroLED-based optical interconnect technology. The firm told investors that it considers the news “positively”, calling it a strategic way for Kopin Corporation to address the rapidly growing data center market and leverage its strong customer relationships without the considerable capital outlay that would have been required if it had pursued this on its own.
Kopin Corporation develops, manufactures, and sells wearable technologies, which include components and systems. Its portfolio includes AMLCD, LCOS displays, OLED displays, ASICs, backlights, and optical lenses.
1. Xerox Holdings Corporation (NASDAQ:XRX)
Xerox Holdings Corporation (NASDAQ:XRX) is one of the top 10 hot penny stocks to buy now. Xerox Holdings Corporation (NASDAQ:XRX) announced its fiscal Q1 2026 results on April 29, reporting a revenue of $1.85 billion, up 26.7%, or 23.6% in constant currency. On a pro forma basis, revenue is down 3.7%, with GAAP net loss of $105 million, or $0.84 per share, down $15 million, or $0.09 per share, year-over-year, respectively.
Management further reported a normalized adjusted net loss of $10 million, or $0.11 per share, down $3 million, or $0.02 per share, year-over-year, respectively. Adjusted net loss was $51 million, or $0.43 per share, down $47 million, or $0.37 per share, year-over-year, respectively. In addition, free cash flow was $165 million, down $56 million year-over-year, while full-year free cash flow guidance of approximately $250 million remained unchanged, implying greater than $400 million of cash generation over the remaining three quarters.
Xerox Holdings Corporation is a workplace technology company that builds and integrates software and hardware for enterprises. Its operations are divided into the following segments: Print and Other, and Financing (FITTLE) segments.
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