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I've always been fascinated by the world of penny stocks, and one thing that catches my eye is how some of these small-cap companies can experience massive growth after listing on the Nasdaq.
Companies like Zomedica Corp. and Ouster Inc. are great examples of this, with their stock prices increasing significantly after going public.
In fact, Zomedica Corp. saw its stock price jump by over 1,000% in just a few months after listing on the Nasdaq in 2019.
Penny Stocks to Watch
I've been keeping an eye on some penny stocks that exploded in the past, and I wanted to share a few of them with you. One of them is SoundHound AI Inc. (NASDAQ: SOUN), which is a record revenue AI penny stock that's definitely worth watching.
The stock has been consolidating, but it's still a top pick for me. I've also been looking at Cerence Inc. (NASDAQ: CRNC), which is a NVDA collaboration stock that's been gaining traction.
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If you're interested in quantum computing, you might want to check out Quantum Computing Inc. (NASDAQ: QUBT) and D-Wave Quantum Inc. (NYSE: QBTS). Both of these stocks have been making headlines in the industry.
Another stock that's caught my attention is fuboTV Inc. (NYSE: FUBO), which has been involved in a Disney merger and has been seeing some significant price action.
Here are some of the penny stocks on Nasdaq that I'll be watching in 2025:
- SoundHound AI Inc. (NASDAQ: SOUN)
- Cerence Inc. (NASDAQ: CRNC)
- Quantum Computing Inc. (NASDAQ: QUBT)
- D-Wave Quantum Inc. (NYSE: QBTS)
- fuboTV Inc. (NYSE: FUBO)
These stocks have the potential to explode in the future, but it's always important to do your own research and understand the risks involved.
Partnerships and Mergers
Richtech Robotics Inc partnered with NVIDIA, which led to spikes in its stock price. This partnership has been a significant catalyst for the company's growth.
The partnership between Richtech Robotics and NVIDIA has been a key factor in the company's success. Richtech's AI-powered robots integrate NVIDIA's Jetson Orin platform and other AI technologies.
Applied Digital Corp also benefited from a deal with NVIDIA, seeing its stock price increase by 150% after the announcement. This deal has given the company credibility in the AI-driven data center space.
APLD's stock price has already blasted past resistance levels, but it's crucial to recognize when a stock is overextended. A pullback is coming, and the trick is to profit off the intraday volatility without getting trapped in a multi-day downtrend.
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Versus Systems Inc Partnership News
Versus Systems Inc (NASDAQ: VS) announced two business agreements with ASPIS, a cyber security firm, on October 15. VS received a $2.5 million investment from ASPIS as part of the agreements. VS's technology can be licensed by ASPIS in its cybersecurity offerings.
The agreements immediately sparked a significant price movement for VS, with the stock spiking by 730% by the next morning. This is a notable example of how partnerships can impact a company's stock price.
I personally traded VS during premarket and saw a 7% profit. My trade notes are a great resource for traders looking to capitalize on similar opportunities.
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What Happens When a Company Lists on Nasdaq?
Listing on the Nasdaq can give a company more legitimacy, as the exchange has stringent requirements for companies to list.
This can attract more institutional investors and hedge funds, who typically don't trade OTC stocks due to lack of liquidity.
Having institutional investors and hedge funds trade a stock can increase its visibility and potential for growth.
A stock's uplisting to the Nasdaq or NYSE can also make it more attractive to individual investors who are looking for more established companies to invest in.
For more insights, see: Learn How to Trade Penny Stocks for Free
What Is a?
A penny stock is a stock trading at less than $5 per share.
You can trade penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq.
Penny stocks are exchanged through over-the-counter (OTC) trades, which some brokerages like Robinhood and TD Ameritrade offer.
It's crucial to understand what penny stocks are and how they operate before investing your time and resources.
Penny stocks are cheap and often sketchy, but they can build your trading account quickly if you trade well.
Growth and Research
Reports can significantly influence the growth of penny stocks by revealing positive or negative performance metrics.
Reports often provide detailed financial statements that can impact stock growth.
Notices, like press releases or regulatory disclosures, can also impact stock growth.
A notice about an upcoming partnership can positively affect a company's growth prospects.
Specific Companies
Richtech Robotics Inc has a low float and strong partnerships, making it a trading opportunity in the robotics sector. Its price volatility is worth noting, particularly after major announcements.
The company specializes in providing robotic solutions for sectors like hospitality and healthcare, aiming to revolutionize labor-intensive tasks. Their AI-driven robots, including the Scorpion and ADAM models, are designed to enhance efficiency and customer experience.
The Scorpion robot offers a cost-effective, smaller footprint alternative to larger humanoid robots, further broadening Richtech's appeal to a diverse set of clients.
Richtech Robotics Inc
Richtech Robotics Inc has a partnership with NVIDIA, which has contributed to its stock spikes, particularly after the launch of its Scorpion AI-powered beverage service robot.
The company's ADAM robot pouring NVIDIA CEO Jensen Huang a tasty beverage has also drawn attention on social media.
Richtech Robotics specializes in providing robotic solutions for sectors like hospitality and healthcare.
Its AI-driven robots, including the Scorpion and ADAM models, are designed to enhance efficiency and customer experience.
The Scorpion robot offers a cost-effective, smaller footprint alternative to larger humanoid robots.
Richtech Robotics has reported strong revenue growth, with an annual revenue of $9.11 million so far in 2024.
The company has a low float, which can contribute to price volatility.
Prices may surge following major announcements, such as its distribution partnership for 500 robots over five years.
Richtech Robotics is headquartered in Las Vegas and aims to revolutionize labor-intensive tasks with its robotic solutions.
Its robots are particularly attractive to businesses looking to modernize operations.
The company's strong partnerships, including its partnership with NVIDIA, make it an attractive trading opportunity in the robotics sector.
Nauticus Robotics Inc. Robotics Sector Spiker
Nauticus Robotics Inc. is a stock that's been spiking without any major news announcements.
The share price started to spike on December 26.
I'm waiting to see a bounce from this stock, especially since the share price is approaching support that was set by the highs on December 27 and 30.
Watch for intraday bounces.
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Nasdaq Investment Benefits
Investing in Nasdaq penny stocks can be a game of high risk and high reward. These stocks offer a chance to buy a large number of shares with a relatively small amount of money, potentially leading to significant gains if the stock price spikes.
Nasdaq, being a reputable exchange, adds a layer of credibility compared to penny stocks traded on less regulated platforms. Remember, it’s not about finding the next big thing; it’s about finding stocks with the potential for big moves.
Trading sector-specific stocks can further drill down on the stocks on your watchlists, requiring an understanding of the market and a willingness to put in the work.
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Renewable Energy
The renewable energy sector has been a hotbed of speculation, with solar energy stocks in particular experiencing wild price swings.
N2OFF Inc. (NASDAQ: NITO) saw its stock spike 1,300% in less than two days after its renewable-energy project obtained approval for a 111 MWp solar PV project in Meltz, Germany.
The low supply of shares, with only 3.9 million shares in circulation, contributed to the rapid price increase.
SPI Energy Co. Ltd. (NASDAQ: SPI) recently hit a 52-week high after settling debts and reintegrating eight solar projects into its portfolio, significantly boosting its renewable energy capacity and projected annual revenue.
This rally was fueled by news of the settlement agreement, which cleared €45 million in debts.
However, SPI has faced long-term challenges, including a 43% decline in 2024 and ongoing Nasdaq delisting concerns due to delayed financial filings.
The solar sector can generate speculative buzz, but traders should focus on technical setups like volume spikes or breakouts rather than getting caught up in the hype.
With a trading float above 20 million shares, short-term spikes are possible, but caution is advised.
As with any penny stock, it's essential to manage risk, set tight stop-losses, and never hold overnight.
For more insights, see: What Are Stocks and Shares
High Risk, High Reward
Penny stocks offer significant profit potential due to their volatility.
However, I've seen many investors get burned by these stocks, so it's essential to approach them with caution.
Careful research is crucial when investing in penny stocks, as they often lack transparency and regulation.
Their volatile nature means that prices can skyrocket or plummet in a short amount of time, making them a high-risk investment.
But for those willing to take the risk, penny stocks can be a game-changer, with some exploding in value and delivering life-changing profits.
Frequently Asked Questions
What penny stock could explode?
Two promising penny stocks to watch are BigBear.ai (BBAI) and Bit Digital (BTBT), which have shown potential for significant growth.
Sources
- https://www.timothysykes.com/blog/penny-stocks-list/
- https://www.linkedin.com/pulse/day-trading-penny-stocks-top-timothy-sykes-75s3c
- https://www.timothysykes.com/blog/penny-stocks-nasdaq/
- https://investorplace.com/2024/04/stealth-wealth-creators-7-overlooked-penny-stocks-ready-to-explode/
- https://www.insidermonkey.com/blog/5-penny-stocks-poised-to-explode-1078916/
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