4 Best Stocks To Buy Under $5

Some of the best stocks on the market once traded at less than $5 a share.

Look at Advanced Micro Devices. Back in 2016, the future tech giant traded at just $2.50. It would eventually rally to a high of $213.83.

Key Points About This Article

 Low-priced stocks under $5 often present a unique opportunity for those seeking high returns with a small investment.

• Trading at just under $4 a share, POET Technologies offers exposure to artificial intelligence systems and hyperscale data centers.
• TeraWulf should see a good deal of upside with Bitcoin just starting to recover lost ground.  
• Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more.

Or look at ACADIA Pharmaceuticals.

In 2011, the biotech stock traded at 70 cents as it was developing its Parkinson’s disease psychosis drug. As it progressed with the treatment, it would go on to a high of $51.

Or look at SoundHound AI, which ran from $1.15 to a high of about $25.

For similar returns, it all comes down to the story behind the stock, if it’s jumping on a wave of momentum, as we’ve seen with artificial intelligence, or if its technology has game-changing market potential. Plus, low-priced stocks under $5 often present a unique opportunity for those seeking high returns with a small investment.

Here are four of the best stocks to buy under $5 you may want to consider.

POET Technologies

Trading at just under $4 a share, $300 million POET Technologies (NASDAQ:POET) offers high-speed optical modules, optical engines, and light source products to the artificial intelligence systems market and to hyperscale data centers. It’s also still flying well under the radar, even after rallying from about 86 cents to a high of $7.79 before dropping back to $3.92.

Even now, there’s still plenty of upside potential.

For one, hyperscale data centers spent $112 billion on semiconductors in 2024, nearly doubling year-earlier numbers. That’s only expected to grow stronger moving forward. Two, POET products are designed for speeds of 800G and above, with designs for 1.6T and 3.2T, which could give it a first-mover advantage once those speeds are seen.

Three, the company is expected to generate meaningful revenues this year from its partnerships with companies such as Foxconn, Luxshare, and Celestial AI.

TeraWulf

Bitcoin mining stocks, like TeraWulf (NASDAQ:WULF) should see a good deal of upside, with Bitcoin finally starting to bottom out and pivot higher. After all, where Bitcoin goes, miners typically follow.

The company, which operates and owns data center infrastructure specifically designed for high-performance computing and Bitcoin mining, doubled its revenue and adjusted EBITDA year over year in 2024. It also achieved a hash rate of 9.7 exahash per second and could increase that to about 13.1 this year. Plus, WULF is still undervalued under $5 a share.

As reported by Seeking Alpha, “CEO Paul Prager stated that 2024 was a transformational year for TeraWulf, highlighting the doubling of revenue and adjusted EBITDA year-over-year, driven by higher Bitcoin production and favorable pricing. He emphasized the company’s strategic shift towards high-performance computing hosting with the execution of a 10-year, 72.5 MW data center lease agreement with Core42, valued at over $1 billion in revenue.” 

Ares Commercial Real Estate 

At just under $5 a share, Ares Commercial Real Estate (NYSE:ACRE) yields 12.15% at the moment.

Not only can you pick up a cheap real estate investment trust, but you can get paid a respectable dividend just for holding it. Plus, within commercial real estate, industrial real estate remains strong thanks to e-commerce, logistics and warehouse demands, as noted by JPMorgan. Retail space demand is still strong thanks to grocery-anchored shopping centers.

And, according to CBRE analysts, 2025 will see further strength in office space demand. They note that retail entered 2025 with the lowest vacancy rate of any commercial real estate sector. They also note that multi-family property vacancies will fall thanks to strong tenant demand.

Regulus Therapeutics 

Trading at $1.45 with a market cap of $93 million, Regulus Therapeutics (NASDAQ:RGLS) is attractive, especially on recent insider buying. About a month ago, company CEO and director Joseph Hagan bought $54,000 to increase his RGLS by 24%. Director David Baltimore bought 19,610 shares in early January.

Plus, analysts at H.C. Wainwright just reiterated a buy rating on the stock with a price target of $10. The firm highlighted the company’s recent financial and clinical progress, particularly the positive interim results from a study of its drug candidate, farabursen for Autosomal Dominant Polycystic Kidney Disease (ADPKD).

“Following a productive End-of-Phase 1 meeting with the FDA in December along with the interim results announced today, we are encouraged by the feedback from the agency and are excited about the path forward for farabursen in ADPKD,” said Jay Hagan, CEO of Regulus. “The positive results announced today underscore our conviction in the potential of farabursen in ADPKD and we look forward to advancing this program into a pivotal study later this year.”

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