On Fire: 5 Best Artificial Intelligence Penny Stocks

Key Points

• AI penny stocks are best suited for risk-tolerant speculators.
• Penny stocks can double and triple quicker and easier than mid-cap or large-caps.
• AI penny stocks have the least liquidity and the most slippage.

While the concept of artificial intelligence (AI) has been around for decades, 2024 was truly the breakout year and tipping point, making it accessible for anyone and everyone with internet access. The viral popularity of ChatGPT and generative AI has spread adoption like wildfire. While many artificial intelligence stocks have made tremendous gains over the years, there may be opportunities for multi-bagger gains for risk-tolerant speculators. Low-priced penny stocks can double or triple much quicker than large-cap stocks. However, they can fall much faster, too. 

Because AI integration and adaption are still in their infancy, the right stocks have plenty of upside potential. Since many investors prefer to invest in the best artificial intelligence stocks, these stocks tend to be the most expensive and crowded trades. But there are many under-the-radar and early-stage AI companies that have yet to hit maturity. The fundamentals may be iffy, so there is the risk that artificial intelligence may not bring the dream to fruition. However, the higher the risk, the more potential upside is the way markets reward.

Let's take a look at five AI penny stocks on fire right now.

Company	Ticker	Market Cap	Industry Specialty
BigBear.ai Holdings Inc.	BBAI	$816.91 million	AI decision support for defense and intelligence
Richtech Robotics	RR	$274.33 million	AI robotics
Airship AI	AISP	$126.06 million	AI video and surveillance
Veritone Inc.	VERI	$119 million	AI computing
Rezolve AI	RZLV	$552.71 million	AI mobile commerce

BigBear.ai Holdings Inc.

BigBear.ai Holdings Inc. NYSE: BBAI has the letters A and I right in its name to remind you of what they do: provide AI and machine learning-generated tools and insights for decision intelligence. In essence, the company leverages AI to help organizations make better data-driven decisions by analyzing complex data and predicting outcomes. Specifically, BigBear.ai focuses on national security, cybersecurity, supply chain management, logistics, finance, and healthcare applications.

BigBear.ai generates most of its revenues from contracts with the United States government's defense and intelligence agencies. It has clients in diversified industries, including manufacturing, healthcare, and life sciences.

BigBear.ai is experiencing significant growth, benefiting from the increasing adoption and integration of AI technologies by both government agencies and private enterprises. The company posted a Q3 2024 EPS loss of five cents, which beat consensus estimates of a loss of seven cents. Revenues climbed 22.1% year-over-year (YoY) to $41.51 million, falling short of consensus estimates of $45.04 million. The company also reported a backlog of around $296 million.

BigBear.ai is often compared to a young Palantir Technologies Inc. NASDAQ: PLTR since it sources much of its revenues from government agencies. BigBear.ai has partnered with Palantir to integrate its AI-powered analytics and machine capabilities with its Foundry platform. They are also working together on the United States Army’s Global Force Information Management (GFIM) system. BigBear has also partnered with defense contractor L3Harris Technologies Inc. NYSE: LHX as the exclusive supplier of predictive analytics, computer vision and event alerting analytics applications for autonomous surface vessels for the United States Department of Defense.

Richtech Robotics Inc.

Emerging business services company Richtech Robotics Inc. NASDAQ: RR designs, develops, and markets AI-powered robots in the service industry. It’s ADAM and ARM robots provide indoor transport, delivery, sanitation, and food and beverage automation solutions. The stock has been compared to NVIDIA-backed Serv Robotics Inc. NASDAQ: SERV, which produces delivery robots and is seeking to deploy 2,000 robots in a deal with Uber Technologies Inc. NYSE: UBER.

The company has expanded its operations by signing a binding letter of intent (LOI) with Ghost Kitchens America to manage 20 additional restaurants within Walmart stores. Under this agreement, Ghost Kitchens will gain exclusive rights to operate these restaurants located in Texas, Colorado, and Arizona. Each location is expected to generate annual revenues ranging from $700,000 to $2 million.

Richtech Robotics has launched Illinois' first humanoid drink robot, ADAM, which is capable of serving a variety of boba tea and specialty coffee beverages. The company plans to roll out ADAM across 240 locations. Additionally, ADAM was featured as an AI-powered robotic bartender in NVIDIA’s AI Factory video.

Richtech Robotics reported H1 2024 revenue of $2.3 million and a net loss of $3.9 million. The company closed the second quarter of 2024 with $8.2 million in cash and cash equivalents.

Airship AI Holdings Inc. 

Airship AI Holdings Inc. NASDAQ: AISP specializes in AI-powered video and sensor data management. Its platform enables companies to collect, analyze, and utilize visual data from a range of sources, including cameras, satellites, and drones. The company is a double threat in that it is an AI and an Internet-of-Things (IoT) play. 

Airship AI’s technology is versatile, with applications in law enforcement, security, defense, intelligence gathering, and various commercial industries. In 2024, the company secured a one-year $4 million contract with the U.S. Department of Homeland Security for its Acropolis Enterprise Sensor Management platform and multiple awards from state and local law enforcement.

The company reported a Q3 2024 net revenue of $2.9 million, for a total of $19.9 million in the first nine months of 2024, representing a 61% YoY rise. The gross margin reached 75%, driven by a favorable product mix, reduced equipment purchases, and an increase in Outpost AI sales. The company closed the quarter with $6.5 million in cash and cash equivalents.

Veritone Inc.

Veritone Inc. NASDAQ: VERI is an enterprise AI software, applications and services provider whose primary focus is media and entertainment industry solutions. Veritone's flagship profit, aiWARE, uses AI to automate and streamline workflows. aiWare is used for content creation, curation, distribution, and monetization. It can also create synthetic voice, video and audio content for sound effects, music, and music.

Veritone has 3,291 software-as-a-service (SaaS) customers, including Bloomberg, Sony, ESPN, Amazon, NFL Network, and CNN. The company partners with credible giants like Microsoft, Oracle Co. NYSE: ORCL, and Snowflake Inc. NYSE: SNOW.

Veriton reported Q3 2024 revenue of $22 million, which includes $14.7 million in Software and $7.3 million in Managed Services revenue, respectively. New bookings grew 6% YoY to $16.5 million. Annual recurring revenue (ARR) was $64.3 million, which was a decrease from $89.3 million in the year-ago period. In October 2024, the company sold its Veritone One media agency for $59.1 million in cash and up to $18 million in earnout, subject to its revenue performance in 2025. Veritone forecasts 30% YoY revenue growth for full year 2025.

Rezolve AI Ltd. 

Rezolve AI Ltd. NASDAQ: RZLV is capitalizing on the growing adoption of mobile commerce by offering solutions that enhance omnichannel engagement. The company has a strategic partnership with Google Cloud and Microsoft Azure to enhance market reach and sell its Brain AI products.

Rezolve, a pre-revenue company with a market capitalization of $552.71 million, achieved significant financial milestones recently. On December 18, 2024, the company gained $15.7 million through the conversion of $49 million in debt to equity. Additionally, Rezolve raised $15 million in gross proceeds from the sale of five million shares and warrants, allowing for the purchase of up to five million ordinary shares at $3.00 per share.

Penny Stocks: Cheap for a Reason

Penny stocks are often inexpensive because they are tied to companies facing significant challenges, such as negative news or deteriorating fundamentals. Many of the AI penny stocks listed here have experienced declines in YoY revenue and profitability, making a turnaround essential for these stocks to recover and maintain gains. While penny stocks are often seen as underdogs—and underdogs typically lose—there is always the rare chance of a major win. And that slim possibility is what drives interest in investing in AI penny stocks.