10 Most Popular AI Penny Stocks to Buy Under $5

5. Nerdy Inc. (NYSE:NRDY)

Share Price as of March 24: $1.58

Number of Hedge Fund Holders: 7

Nerdy Inc. (NYSE:NRDY) operates an AI-driven live online learning platform. It connects learners of all ages with tutors and educators across various subjects. Using AI to personalize learning experiences, the platform offers one-on-one instruction, group tutoring, and self-study tools through Varsity Tutors and Varsity Tutors for Schools.

In the company’s Varsity Tutors segment, one of the key AI initiatives includes the AI Session Playback tool, which summarizes tutoring sessions and has received a 99% positive feedback rate. AI lesson and practice problem generators are also in use, and Tutor Copilot provides real-time instructional support. Future AI developments include upgrading the AI tutor for on-demand support and refining the expert-learner matching algorithm.

Nerdy Inc. (NYSE:NRDY) has already reduced its corporate headcount by 15% through AI-enabled productivity initiatives during Q1 2025, which resulted in $6 million in annualized cash savings. The company anticipates scaling without significant new hiring due to AI automation. In Q4 2024, the company’s revenue was $48 million. 82% of this came from the Consumer Learning Membership revenue. For Q1 2025, revenue is projected between $45 and $47 million.