For many retail traders, penny stocks under 10 cents feel like a hidden treasure map – risky, wild, but potentially rewarding. These nasdaq penny stocks under 10 cents exist in a niche pocket of the market that most institutional investors avoid, but for seasoned speculators, they offer a high-stakes playground full of opportunity.
The Nasdaq exchange, while known for tech giants like Apple and Amazon, also lists some ultra-low-priced stocks. Yes, stocks under 10 cents are often distressed, but in some cases, they may be overlooked turnaround stories with real upside. Let’s be clear: these stocks are not for the faint of heart. But if you know how to navigate the noise, a few of them might just deserve a spot on your watchlist.
Why Look at Sub-10-Cent Nasdaq Stocks?
Penny stocks are generally defined as those trading under $5, but the 10-cent-and-under range takes it a step further. These are companies on the brink – either of collapse or of significant change. Some are restructuring, others awaiting key news, and a few are just beaten down beyond their fundamentals.
It’s this extreme volatility that draws day traders and swing traders alike. In fact, data from FINRA shows that penny stocks (under $5) make up roughly 20% of daily U.S. equity trades, with a measurable subset trading below 10 cents. This signals real momentum and interest – even at these rock-bottom levels.
What Traders Should Know Before Diving In
Before jumping into any sub-10-cent stock, traders need to understand the risks involved:
- Low liquidity: Not every 10-cent stock trades actively.
- Wide bid-ask spreads: You could lose value immediately upon entering a trade.
- High dilution risk: These companies often issue shares to raise funds.
- Potential for delisting: Nasdaq-listed stocks are required to maintain a minimum bid price of $1, or risk being delisted.
Despite the challenges, some stocks in this group are gaining traction. Here are five Nasdaq penny stocks under 10 cents that are turning heads in the trading community.
1. IMC International Mining Corp. (IMIMF)
- Current Price: ~$0.009
- Sector: Mining & Exploration
IMC is a micro-cap exploration company focusing on gold and base metal projects in North America. While early-stage, the company has continued to develop its projects and secure small capital raises to fund operations.
Why it’s gaining attention: Gold prices have remained relatively strong in 2025, with spot prices hovering above $2,000/oz. As a result, even micro-cap explorers are seeing renewed trader interest. In fact, junior mining stocks with exposure to gold surged by 35% on average during the last six-month rally, according to Kitco’s 2024 data.
Speculators are watching IMIMF for any acquisition news, drill updates, or partnerships that could push volume – and the price – up quickly.
2. Guardforce AI Co. Limited (GFAI)
- Current Price: ~$0.098
- Sector: Artificial Intelligence & Robotics
Yes, technically it hovers right at the 10-cent mark, but GFAI has dipped below that several times in recent months, making it a fair inclusion here. This company operates in the AI space, providing security and robot-based logistics solutions in Asia. It has made headlines in the past for acquisitions and product launches.
What makes GFAI stand out: The stock has shown repeat spikes following AI-related announcements. According to Bloomberg Intelligence, small-cap AI firms with ongoing product rollouts experienced an average 22% bump in share price within one week of such news.
Traders are watching for any hint of new contracts, partnerships, or even viral AI buzz that could push GFAI back into double-digit gains.
3. Aethlon Medical Inc. (AEMD)
- Current Price: ~$0.096
- Sector: Biotech / Medical Devices
Aethlon is known for its Hemopurifier®, a medical device designed to filter viruses and harmful exosomes from the bloodstream. While its pipeline is early stage and speculative, the biotech buzz and high short-term volatility make this stock attractive to nimble traders.
The healthcare micro-cap segment can be incredibly volatile, especially in immunotherapy and viral treatment spaces. According to BioPharma Dive, biotech stocks under $1 average intraday price swings of over 8%, making AEMD a candidate for quick, momentum-driven trades.
If clinical updates or regulatory meetings are announced, this could trigger rapid movement, even if it’s short-lived.
4. ToughBuilt Industries (TBLT)
- Current Price: ~$0.095
- Sector: Tools and Construction Equipment
ToughBuilt, a company known for rugged construction tools, has spent the last year expanding its e-commerce footprint. Its presence on Amazon and big-box retailers like Lowe’s and Home Depot has grown, and traders are hoping that this will eventually reflect in the stock price.
Why traders care: Consumer product companies with expanding e-commerce channels have outperformed in the micro-cap space. Statista reports that e-commerce-based micro caps with strong Q/Q growth average 13–18% price increases following earnings releases that beat expectations.
TBLT is being watched for improved financial results, distribution deals, or further retail expansion.
5. Phunware Inc. (PHUN)
- Current Price: ~$0.097
- Sector: Mobile App & Ad Tech
Phunware develops software for mobile engagement and marketing automation. It gained popularity during the 2021 retail trader wave thanks to its connections to high-profile political campaigns and digital infrastructure plays.
Recently, it’s seen renewed interest due to partnerships in digital ID and smart city initiatives. The mobile ad-tech space is competitive, but also full of upside when contracts or government projects are secured.
A McKinsey study in 2023 showed that small-cap ad-tech firms announcing new government or municipal partnerships experienced an average 24% rise in share price within 10 trading days. This stat helps explain the increased watchlist buzz around PHUN.
Risk Management Tips for Sub-10-Cent Trading
While the upside on these names can be thrilling, it’s critical to implement strict discipline. Here’s how savvy traders approach this niche:
- Use tight stop losses: Even a half-penny move can be a 5–10% swing.
- Stick to limit orders: Avoid getting caught by wide bid-ask spreads.
- Scale in and out: Don’t go all-in at once; scale into your positions.
- Track volume: A spike in volume can be a clue to news, momentum, or coordinated buying.
- Stay updated: Sub-10-cent stocks can double – or halve – on a single tweet or filing.
Final Thoughts
Sub-10-cent Nasdaq stocks are not for everyone. They’re often under-the-radar, undercapitalized, and under pressure to meet listing requirements. But where some see danger, others see volatility worth trading.
The key is doing your homework, managing risk, and knowing the difference between a momentum trade and a moonshot bet. These five names – IMIMF, GFAI, AEMD, TBLT, and PHUN – each come with a story and potential catalyst, which is more than you can say for most micro-cap stocks in this range.
So, whether you’re a seasoned penny stock trader or just curious about this wild corner of the market, keeping an eye on sub-10-cent Nasdaq names might add a little spark to your watchlist – just make sure your seatbelt is fastened.