Penny stocks carry a good deal of risk.
It’s why the US SEC says, “Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
However, if you spot the right ones with solid catalysts, the returns can be explosive.
Look at Advanced Micro Devices (NASDAQ: AMD | AMD Price Prediction). Just a few years ago, AMD traded at around $5 a share. Today, thanks to the artificial intelligence boom, it’s up to $160 a share for a return of more than 3,100% in just a few years. Of course, there was a lot of required patience, too.
If you understand the risk involved, here are just a few hot penny stocks to consider.
Plus Therapeutics
Shares of clinical-stage pharmaceutical company, Plus Therapeutics (NASDAQ: PSTV), are up about 31% on a volume spike of 216.4 million, as compared to its daily average volume of 15.5 million. All after the cancer drug maker said UnitedHealth’s insurance arm reached an agreement with its CNSide Diagnostics unit to offer national coverage for a cancer test.
As part of the deal, more than 51 million Americans across the U.S. will be able to access CNSide’s CNSide Cerebrospinal Fluid Assay, targeted at metastatic cancers in the central nervous system. Reportedly, the assay has 92% sensitivity and 95% specificity. It can also help influence medical treatment decisions in about 90% of cases, as noted in a PLUS release.
Evaxion
Shares of Evaxion (NASDAQ: EVAX), a clinical-stage TechBio company specializing in developing AI immunology, are up 29% to $4.26 on a volume spike to 55.8 million, as compared to its daily average volume of 92,139. This is all after the company out-licensed its vaccine candidate, EVX-B3 to Merck.
EVAX will receive a cash payment of $7.5 million in addition to future milestone payments of up to $592 million. It’s also eligible for royalties on net sales.
This has significant financial value for us, but equally important is the massive validation of our AI-Immunology™ platform by MSD, the world leader in vaccine development and commercialization. We could not have found a better partner to develop and maximize the full potential for our AI-discovered vaccine candidate. Further, this exemplifies our strategic approach to monetize value through high-impact partnerships,” says Birgitte Rønø, CSO and interim CEO of Evaxion, as quoted in a company release.
Datavault AI Inc.
AI company, Datavault AI (NASDAQ: DVLT) is up about 32% on a volume spike to 137.5 million, as compared to its daily average volume of 21.3 million. Helping was the company’s new initiative to promote the adoption of the XRP asset, which was announced at the XRP Seoul Global Conference.
Plus, the company just posted a 467% year-over-year jump in revenue to $1.7 million, thanks to annual recurring revenue achievements with its agentic AI products. In addition, as of mid-year, the company expects a $25 million run rate by the end of 2025 and annual revenue between $40 million and $50 million in 2026.
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