10 Best Emerging Technology Stocks to Buy Now

7. Pony AI Inc. (NASDAQ:PONY)

Focus Area: Autonomous driving technology

Potential Upside: 32%

Number of Hedge Fund Holders: 20

Pony AI Inc. (NASDAQ:PONY) is an autonomous driving technology company focused on developing self-driving solutions for both passenger and commercial transportation. Its AI-driven mobility offerings include robotaxi services and autonomous freight transport, aiming to revolutionize the future of mobility.

Pony AI Inc. (NASDAQ:PONY) competes in the Chinese autonomous driving market, with the likes of Tesla Inc. (NASDAQ:TSLA). The company leverages its proprietary Virtual Driver technology, an advanced self-driving system designed to work across multiple vehicle types. By integrating its custom-built software, hardware, and services, the company delivers a scalable and reliable autonomous driving solution. Its long-term objective is to establish a sustainable business model by facilitating the widespread adoption of self-driving technology across various transportation sectors.

Unlike competitors that rely on vision-based approaches, Pony AI Inc. (NASDAQ:PONY) employs a hybrid sensor system, incorporating LiDAR, cameras, and radar to enhance safety and precision in navigation. The company focuses on Level 4 autonomous driving, which refers to fully automated driving capabilities without human intervention under specific conditions.

Recently, Pony AI launched paid robotaxi services across multiple locations and high-traffic routes in China, making it the first and only company authorized to operate robotaxi services on these major routes. This milestone highlights the company’s progress in commercializing autonomous ride-hailing. Recognizing this potential, Deutsche Bank analyst Bin Wang had initiated coverage on Pony AI Inc. (NASDAQ:PONY) in mid-January with a Buy rating and a $20 price target. Wang had emphasized the huge growth potential in the robotaxi market, estimating that the company’s ‘Robotaxi’ and ‘Robotruck’ businesses will account for an increasing share of total revenue—rising from 58% in 2024 to 97% by 2030.