4 AI Penny Stocks TOO CHEAP TO IGNORE

Everybody wants a piece of AI, but the names that everyone's talking about cost hundreds of dollars a share, and they're priced for perfection. By the time the stock is on every headline, a lot of the easy money has usually already been made. So, I decided to go hunting for real AI businesses trading for pocket change. So, I'm going to share four that rates the best in our market beating quant rating system with you today. And of the more than 4600 stocks that we track, only four trade at penny stock prices and are also rated a strong buy by our Zen ratings system. One of them is actually even profitable with earnings up more than 40% from the year before. And one even has a top ranked Wall Street analyst whose price target implies the stock could roughly double. One earns the best value grade of anything in this entire video. And it's even in the top 1% of the entire market. And I didn't even mention the best one of the entire bunch. You're gonna have to wait for that one because I do like to save the best for last. Now, I should probably tell you who I am. My name is Jacob Wade and I help high income earners build wealth and retire early. And on this YouTube channel, we cut through the noise and we focus on where the real opportunities are. So, let's start with a company that almost nobody has ever heard of. It's called Sonote Tech. ticker symbol S O TK. It makes ultrasonic coding machines used in chips, solar cells, and medical devices. So, where's the AI angle here? Well, the AI boom is not only about designing chips, but also about packaging them. The fastest AI processors are several chips that are actually stacked and bonded together. And those steps need precision coding. And that's pulling in Sonoteex semiconductor customers. And it's how a decades old coding company earned a seat at the AI table here. Now, Sonet is a profitable company, which actually already sets it apart from most penny stocks that you've ever heard about. It earned around $2 million over the past year on $21 million of revenue. And those earnings grew more than 40% from the prior year. And if you stretch that out, the earnings have actually more than doubled over the last 3 years. And a profit margin near 10% on a company this small actually tells you management runs a tight ship here. Now this petty stock has pulled back in recent months which presents a buy the dip opportunity. It's down almost 14% over the past month and trades 25% below 52 week highs sitting near $460. The next near-term driver for the tech stock will be the upcoming earnings report that's coming out on October 13th. So, keep an eye on that. And notably, earnings grew 30% year-over-year last quarter. So, basically, the business is growing amid a volatile price environment, making it an enticing contrarian bet. Now, a quick word for anyone new here, because I lean on this all the time. Zen ratings. That's our quant ratings system, which grades every stock on 115 different factors. And then the stocks are ranked an A through an F, where an A rating means a strong buy recommendation. And guess what? Sonotech is an A rated stock. It's in the top 2% of every single stock that we track. It's also the number one ranked name out of 24 in its industry. Now, let's take a look at the seven underlying component grades that make up this A rating. Sonotech ranks in the top 15% for momentum. So, the longerterm trend is still actually bullish despite the recent dip in the markets. It ranks in the top 13% for financials, which means the balance sheet is actually robust, which matters a ton for a penny stock. It ranks in the top 11% for sentiment, suggesting that smart money is already starting to lean in here. And the standout here is value. It actually ranks in the top 8% for value. So, in a nutshell, the penny stock is trading below its intrinsic value. However, Sonotech's safety score sits in the bottom third, which is really just the system confirming what you already know. A $70 million company with thin trading volume can swing hard on a single order or one earnings report. But that's kind of the appeal here. Actually, Sonotech is a profitable, well-run niche manufacturer, ranked first in its industry, writing a genuine AI tailwind, and cheaper than it was a month ago. So, that's our first company and honestly not a bad way to open this list. Now, before we get into the next stock here, if you want to hear exact stock picks directly from our editor-inchief, you can actually join him live every single Monday for free. You do need to register to join though, so just scan the QR code on the screen right here or go to wall streetzen.com/live to sign up. All right, our next stock up is DHI Group, ticker symbol DHX. Now, here's a pro tip. Don't mix it up with ticker symbol DHI, which is a totally different company. We're talking DHX. So, even though it's called DHI Group, I'm just going to name it DHX so you don't avoid confusion with that other company. So, DHX owns and operates DICE, which is a job marketplace built for tech professionals. DHS connects companies with hard to find engineers and data scientists, and it's pushing into matching people with government security clearances to cleared roles. So, while that's cool, how does that fit into an AI video? Two reasons here. First, the jobs flooding onto dice are increasingly AI jobs. Companies are scrambling for machine learning talent, and DHX gets paid to fill them. Second, DHX has rebuilt its own platform around AI matching. So, it pairs candidates to roles the way a great recruiter would at scale. Now, this penny stock has been on an absolute tear, rising 19% in the past month and around 70% over the past year. DHX is definitely a momentum stock that is positioned to outperform. Analysts covering the stock expect its earnings to grow at an exceptional clip over the next couple of years, coming off a low base as the clear jobs business scales. Its earnings are at an inflection point, which could drive this stock price even higher. And Wall Street is leaning in, too. The most credible voice is Gary Prepapino at Bington Research who ranks in the top 2% of all analysts that we track. He has a buy recommendation on DH and his price target suggests the stock could roughly double over the coming year, which is crazy. But if you like high upside stocks, you're definitely going to want to see the next two. But I digress. We'll get into that. With DHX, it's not just one single bullish target. Even the average target across analysts sits around 35% above the current price. Now, in the Zen ratings, DHX earns an overall A rating, a strong buy recommendation, landing in the top 2% of all stocks. On the component grades, it ranks in the top 15% for growth, which speaks to that earnings inflection. It ranks in the top 12% for momentum, backing up the price strength. And with a top 12% rank for financials, DHX operates with a strong balance sheet. And a top 4% rank in sentiment suggests that Smart Money is firmly on board here. But here is the risk. After a 70% rise in the stock price, much of the optimism is already priced into the stock given modest revenue growth. So, earnings really need to deliver for the valuation to sustain here. Still, it's a niche leader in tech hiring, plugged straight into AI talent demand with top 2% analyst calling for it to potentially double. And that's precisely the kind of name that belongs on this list. Now, if you're getting value out of this video, then hit the subscribe button below if you're not already subscribed to this channel. And make sure to hit that notification bell because you're going to be the first to know when we publish datadriven stock analysis just like this every single week. The market moves fast. You probably already know that. And the stocks that matter today aren't the ones that mattered 6 months ago. So go ahead and subscribe and stay up to date. All right. Next up on my list and my runner up here is 8 by8. Ticker symbol EGHT. This is one of the biggest most established companies on the list and it has the lowest share price. Now, 8 by8 sells cloud communications to businesses. Think phone systems, video, contact center software with roughly $745 million in annual sales. This penny stock trades at less than $2 per share. So, why is 8 by8 part of my penny stock watch list here? Well, for years, 8 by8 was lumped into a crowded, slow growth category. But then it rebuilt its contact center around AI. And today, agents handle customer calls and chats. AI also summarized conversations and coaches human reps in real time. And in 2026 alone, the AI platform is the company's fastest growing segment, which makes a ton of sense. Now, 8 by8 is down more than 50% from its 52- week high because of sluggish revenue growth and narrowing gross margins. However, it is a profitable company that is positioned to grow earnings at an exceptional rate over the next year. So, you have improving earnings and a falling price. And that gap is where the opportunity tends to hide. And there is analyst conviction behind this stock. Katherine Trebnik ad Rosenlant who ranks in the top 3% of all analysts that we track has a strong buy on 8 by8 and her price target suggests the stock could actually climb roughly 65% over the coming year. That is serious upside potential from a highly ranked analyst. Now the Zen ratings, this is where 8 by8 really shines. It earns an overall A rating, a strong buy recommendation, and lands in the top 1% of every stock that we track. And financials, the AI, factor, and safety all rank in the top quartile or better. Growth is in the top 10% while sentiment is in the top 6%. But the big headline here is value as it ranks in the top 1% of the entire market. The single best value grade in this entire video. Now, I do want to say a quick word on the AI factor I just mentioned since it's the first time that I'm leaning on it here. It's part of our model that actually uses machine learning to spot subtle patterns pointing to future outperformance and 8 by8 ranks in the top 17% there as well. Now, the one soft spot here is Momentum, which sits in the bottom third. The stock just hasn't been rewarded yet. But for a valuedriven pick, that's the setup, not the flaw. It's a profitable established software business with a real AI turnaround and the best value grade on this list and a top 3% analyst is calling for big upside. That's why 8 by8 is my warm-up here for the final pick. Now, before we get to the final stock of this video, one quick thing. If you want to stay one step ahead of this market, then join our editor-inchief, Steve Wrightmeister, live every Monday. That's when he shares his updated market outlook and trading plan to outperform. This is also when he shares his trade of the week based on our proven Zen ratings quant model and his greater than 40 years of investing experience. Now, this is a free event, but you do need to register to join. So, just go to wall streetzen.com/live or click the link in the description or if you're sitting there watching this with phone in hand, scan the QR code on the screen, you just pause the video real quick and register to join. Now, I want to say this because people have asked me. Even if you can't join live on Monday, you should still sign up for this because we're going to send out a replay to all registrants to watch at a more convenient time if you can't happen to make it. All right, our number one penny stock here is Riskified, ticker symbol RSKD. This is honestly also the purest AI business on this entire list. And I'll be real that it's on the edge of penny stock territory as it does trade more in the $6 range. I think you'll see why I included it here as I continue. Now, here's what Riskifi does. When you check out on a big online store, an AI model decides in a fraction of a second whether your order is legitimate or fraudulent. And Riskifi guarantees that call. If it approves an order and it turns out to be fraud, Riskifi actually bears the loss. Now, think about what that means. The company only makes money if its AI is smarter than the fraudsters. And the business model is working. Riskifi generates about $368 million in revenue, up 10% this past year and compounding at roughly 65% a year over the last 3 years. Now, I'll say it is not profitable yet, but the losses are shrinking fast and analysts see revenue climbing past half a billion dollars within 3 years. Now, for a company whose product literally improves with every transaction, that's a powerful flywheel. Now, here is the twist here. Wall Street is actually kind of split on this one. The analyst consensus actually lands at a hold recommendation with price targets clustered near where the stock trades today. And that's honestly what makes this kind of interesting to me because our system flatly just straight up disagrees with Wall Street with Zen ratings. Riskified earns an overall a strong buy recommendation and ranks in the top 1% of every single stock that we track. But the real headline is this. It is the number one ranked stock out of 172 stocks in its entire industry. Now for the component grades, it ranks in the top 15% for financials, the top 12% for momentum, the top 12% for that AI factor that I mentioned earlier, which fits a company that is built entirely on AI. Sentiment is in the top 8%. So the smart money is actually leaning in here even while Wall Street is hesitating on this stock. But the crown jewel here is growth. It's in the top 2% of the entire market. Now, the risk is straightforward. Riskified is not profitable yet, making it vulnerable if macro sentiment turns bearish. But when a company ranks first in its industry, owns a business that gets smarter literally with every sale and our system rates it as a strong buy recommendation while Wall Street is still asleep. That's the kind of setup that can actually look obvious in hindsight. And that's why Riskified is my number one pick in today's video. So, there they are. That's four AI penny stocks that are cheap for now but making the right moves. And here's how I would actually use a list just like this one. It's not necessarily a buy everything list. I would pick one or two where this story clicks for you and round out the research that I started for you in this video because remember at the end of the day you're the one who is responsible for your investment decisions. Now my eyes are on riskified and 8 by8s. one for AI native growth and the other for deep deep value. Now, I would love to hear from you which of these four is your favorite out of these penny stocks. And is there any other AI penny stock you think the market is completely overlooking? Drop it in the comments below and let's talk through it. And just remember, the best time to look at a stock is before the crowd shows up. And if you want to take a deeper look, you can pull a free Zen rating on more than 4,600 stocks yourself by just typing in the ticker symbol at wall streetzen.com. And don't worry, the ratings are updated every single day. So yeah, you can just bookmark the site, check the freshest grade before you make any buy or sell decisions. Now, if you want more AI stocks that you can add to your watch list, check out the video that's popping up on your screen right here.