Here's What Wall Street Thinks About Pony AI (PONY)

Pony AI Inc. (NASDAQ:PONY) is one of the Best Young Tech Stocks to Buy. On December 16, Jiong Shao from Barclays initiated Pony AI Inc. (NASDAQ:PONY) with a Hold rating and a $15 price target. A day earlier, on December 15, Eugene Hsiao from Macquarie also initiated coverage on the stock with a Buy rating and a $29 price target.

Analyst Shao of Barclays noted that they remain optimistic regarding the future potential of robotaxis. He added that most of the robotics technology in China is ready, and the firm also sees a viable business model for these technological advancements. However, despite this, the company assigned an Equal Weight rating, noting that the challenges of this industry can not be overlooked.

On the other hand, Hsiao of Macquarie is bullish on the Chinese autonomous driving industry. He expects 2026 to be an important inflection point where robotaxis transition from pilot projects to viable commercial businesses. In this scenario, the firm sees Pony AI Inc. (NASDAQ:PONY) as a leader in the industry. He added that the positive sign for the company is that its biggest challenge right now is regulation rather than technology.

In addition, the firm also highlighted that Pony AI Inc. (NASDAQ:PONY) has to focus on establishing its presence in Tier-1 Chinese cities before expanding to other cities. The analyst noted that this strategy will help the company in lifting daily fares per vehicle, which will, in return improve the unit economics.

Pony AI Inc. (NASDAQ:PONY) is a leading autonomous mobility technology company. The company leverages its Virtual Driver technology, a full-stack autonomous driving technology that utilizes the company’s proprietary software, hardware, and services, to enable the large-scale production and deployment of autonomous vehicles.

While we acknowledge the potential of PONY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.