We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.

Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.

Penny Stock of the Day: Datavault AI Inc. (NASDAQ: DVLT)

Today’s penny stock pick is the data sciences technology company, Datavault AI Inc. (NASDAQ: DVLT).

Datavault AI Inc. owns and operates data management platforms with supercomputing capabilities in North America, Asia Pacific, Europe, and internationally. The company also offers data technology and software solutions that enable customers to thrive in the evolving landscape of data ownership, privacy, and security through high performance computing (HPC) infrastructure and proprietary software. In addition, it provides registration, data analytics, and lead management services for live events, offering cutting-edge solutions, and unparalleled customer support to clients in the trade, association, corporate, and government event markets. The company was formerly known as WiSA Technologies, Inc. and changed its name to Datavault AI Inc. in February 2025.

Website:  https://datavaultsite.com/

Latest 10-K report:  https://ir.datavaultsite.com/sec-filings/all-sec-filings/content/0001104659-26-031280/0001104659-26-031280.pdf

Analyst Consensus: As per TipRanks Analytics, based on 1 Wall Street analyst offering 12-month price targets for DVLT in the last 3 months, the stock has an average price target of $4.00, which is nearly 330% upside from current levels.

Analysts | Source: TipRanks.com

Potential Catalysts / Reasons for the Hype:

  • Datavault has seen top-line revenue explode. They recently guided their FY2025 revenue to roughly $39 million which is a staggering ~1,300% increase from their $2.7 million in 2024.
  • The company patented Information Data Exchange (IDE) for digital twins, NIL (name/image/likeness), secure data valuation/monetization, and edge computing. These patents directly enhance Datavault AI’s core patented technologies, including Sumerian® Crypto Anchors, DataScore, and DataValue AI agents.
  • $150M strategic investment from Scilex Holding in 2025 provides capital runway.
  • A major whisper is Datavault’s pitch during Oscars weekend regarding the on-chain control of celebrity Name, Image, and Likeness (NIL) rights. If they land a major celebrity or studio contract for their “Digital Twins” tech, retail volume may go parabolic.

On analyzing the company’s stock charts, there seem to be multiple bullish indications…

Bullish Indications

#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out a symmetrical triangle pattern, which is marked as purple lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.

DVLT – Daily Chart

#2 Bullish ADX and DI: The ADX indicator shows bullishness as the +DI line is above the -DI line, and the ADX line is currently moving higher from below the +DI and -DI lines.

#3 Price above MAs: The stock is currently above its 50-day as well as 200-day SMA, indicating that the bulls have currently gained control.

#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.

#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink dotted line. This looks like a good area for the stock to move higher.

DVLT – Weekly Chart

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for DVLT is above the price of $1.00.

Target Prices: Our first target is $2.30. If it closes above that level, the second target price is $3.30.

Stop Loss: To limit risk, place a stop loss at $0.30. Note that the stop loss is on a closing basis.

Our target potential upside is 130% to 230%.

For a risk of $0.70, our first target reward is $1.30, and the second target reward is $2.30. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers 2x to 3x more potential upside than downside.

Potential Risks / Red Flags:

  1. The company has a history of net losses and has an accumulated deficit of approximately $377.4 million as of December 31, 2025.

    DVLT – Consolidated Statements of Operations

  2. The company recently received minimum bid price notice from NASDAQ, failure to regain compliance could lead to delisting pressure.
  3. Corporate Insiders placed Informative Sells of Shares Worth $31.3M in the Last 3 Months.

    Insiders | Source: TipRanks.com

  4. The company has ongoing dispute/lawsuit with Scilex.
  5. DVLT has customer concentration risk. As of December 31, 2025, the Company had two customers accounting for 65% and 32% of accounts receivable.
  6. Despite being a loss-making company, the executives are being paid significant compensation.

    DVLT – Executive Compensation

As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!

Happy Trading!

Trades of the Day Research Team

READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.

Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.

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