Penny Stocks on Robinhood: High-Risk Plays for September 2025
Forget blue chips and dividend aristocrats. If you want explosive moves and don’t mind the possibility of watching your money evaporate, penny stocks are where the action is. And in September 2025, the setup couldn’t be more volatile.
The market’s been a rollercoaster this year. AI hype is still driving crazy moves, crypto correlations are stronger than ever, and retail traders on platforms like Robinhood are hunting for the next 10-bagger. These conditions create perfect storms for penny stock explosions – and implosions.
Fair warning: these aren’t investments. They’re speculative trades where you can lose every penny you put in. But if you understand the risks and position size appropriately, some of these September setups could deliver serious returns.
What’s Different About September 2025?
The penny stock landscape has evolved significantly since the meme stock era. We’re seeing new patterns emerge:
AI Integration Everywhere: Even tiny companies are claiming AI exposure, and the market’s rewarding them with massive moves. Whether the tech is real or just marketing fluff often doesn’t matter for short-term price action.
Crypto Treasury Plays: Following MicroStrategy’s playbook, small companies are loading up on Bitcoin and Ethereum as treasury assets. When crypto runs, these stocks can move 5x harder.
Earnings Surprises: In this low-volume environment, even tiny positive surprises can trigger huge spikes. The flip side? Disappointments get punished brutally.
Here are the penny stocks on my radar for September 2025 – the ones that could explode or implode based on current catalysts.
SharpLink Gaming Inc. (SBET)
This one’s wild. SharpLink started as a sports betting technology company, but in May 2025 they completely pivoted. They raised $425 million in a private placement – not to expand gaming operations, but to launch an Ethereum treasury strategy.
Here’s what makes it interesting: Ethereum co-founder Joseph Lubin joined as Chairman of the Board. Major crypto VCs like Pantera Capital and Galaxy Digital participated in the funding. They’re essentially turning into a publicly-traded Ethereum proxy.
The risk? They’re abandoning their core business to chase crypto trends. But if Ethereum rallies toward year-end, SBET could see massive leverage to those moves. It’s trading around the post-announcement lows, so any positive crypto sentiment could trigger a squeeze.
American Battery Technology Co. (ABAT)
ABAT ended 2024 with a 360% spike and keeps pushing higher in 2025. They’re building domestic battery metal infrastructure – recycling, extraction, and processing all under one roof.
The thesis is simple: the U.S. produces less than 1% of global lithium, cobalt, nickel, and manganese supply. With EV demand still growing and supply chain concerns mounting, domestic production becomes critical.
They’re approaching the $4 resistance level that’s been a ceiling multiple times. A break above that with volume could trigger another leg higher. The risk is that battery metal prices have been volatile, and any slowdown in EV adoption could hurt demand for their services.
Wolfspeed (WOLF)
Here’s a crazy story: Wolfspeed filed for Chapter 11 bankruptcy reorganization in July 2025 to eliminate $4.6 billion in debt. Instead of crashing, the stock rallied 750% in one day.
Why? This isn’t a liquidation – it’s a creditor-supported restructuring. Wolfspeed makes silicon carbide semiconductors that are essential for AI data centers, EVs, and military applications. They have real technology and real customers.
The bankruptcy wipes out the debt burden that was crushing the company. If they emerge successfully in Q4 2025 as planned, this could be a legitimate turnaround story. But bankruptcy proceedings are unpredictable, and equity holders could still get wiped out if things go wrong.
Applied Digital Corporation (APLD)
APLD builds AI data centers, and they just signed a massive deal with CoreWeave worth $11 billion in total contract value. The stock spiked 16% on that news and could have more room to run.
What’s compelling is their “dirt to compute” approach – they’re building hyperscale facilities specifically designed for AI workloads. With AI demand still accelerating, infrastructure providers like APLD are seeing huge interest.
The company also has $5.4 billion in financing commitments from major banks, giving them the capital to execute on expansion plans. The risk is execution – building data centers is capital-intensive and complex.
QuantumScape Corporation (QS)
QuantumScape is the solid-state battery company that was once valued at $50+ per share during the SPAC boom. Now it’s trading in penny stock territory, but they’re still developing potentially game-changing battery technology.
Solid-state batteries could solve major problems with current lithium-ion tech – faster charging, longer life, better safety. If they can prove commercial viability, the addressable market is enormous.
The challenge is timeline. They’ve been “close to breakthrough” for years, and commercialization keeps getting pushed back. But at current prices, even modest progress updates could trigger significant moves.
Opendoor Technologies (OPEN)
Opendoor pioneered the “iBuying” model – using algorithms to instantly purchase homes, then reselling them. The concept was compelling, but execution has been brutal in the current real estate environment.
What’s changed? They’ve dramatically reduced their home acquisition rate and focused on becoming profitable on smaller volume. Recent quarters have shown improving unit economics.
If real estate markets stabilize and interest rates come down, Opendoor could benefit from both operational improvements and market recovery. But they’re still burning cash, and any further real estate deterioration could be devastating.
Joby Aviation (JOBY)
Electric vertical takeoff and landing (eVTOL) aircraft represent the future of urban transportation – maybe. Joby is one of the leaders in the space, with actual aircraft and regulatory progress.
They’ve been conducting test flights and working through FAA certification processes. Recent partnerships with major airlines and ride-sharing companies validate the commercial potential.
The timeline risk is huge though. Even if the technology works, regulatory approval and infrastructure buildout will take years. But if they can prove the concept works commercially, early investors could see massive returns.
The Reality Check
Let’s be brutally honest about penny stock trading in 2025. Most of these companies are burning cash, have unproven business models, or are betting everything on technologies that might not work.
The explosive moves that make headlines represent a tiny fraction of penny stock trades. For every 500% winner, there are dozens of 50-90% losers that nobody talks about.
Here’s what matters if you’re going to trade these:
Position Sizing: Never risk more than 1-2% of your total capital on any single penny stock. These can go to zero.
Volume Matters: Stick to stocks with decent daily trading volume. Low-volume stocks can be impossible to exit when things go wrong.
Have an Exit Plan: Set profit targets and stop losses before you enter. Emotional decision-making kills penny stock traders.
Follow the Catalysts: These stocks move on news, earnings, partnerships, and regulatory approvals. Ignore the noise and focus on events that actually matter.
The market conditions in September 2025 are creating opportunities for massive moves in both directions. AI hype continues driving valuations to extreme levels. Crypto correlations are adding another layer of volatility. And retail trading activity remains elevated.
But remember – these are trading vehicles, not long-term investments. The companies with real businesses and sustainable competitive advantages rarely stay in penny stock territory for long. The ones that do usually have good reasons for their low valuations.
If you’re going to play this game, treat it like gambling with a slight edge. Use proper risk management, stay disciplined with your rules, and never bet money you can’t afford to lose completely.
The opportunities are real, but so are the risks. Trade accordingly.
