10 Best Performing IT Services Stocks to Buy According to Analysts

6. Pony AI Inc. (NASDAQ:PONY)

YTD returns: 12%

Potential Upside: 24%

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.

Competing with companies like Tesla Inc. (NASDAQ:TSLA) in China, Pony AI Inc. (NASDAQ:PONY) leverages its flexible Virtual Driver technology—an advanced self-driving system adaptable to various vehicle types. By integrating proprietary software, hardware, and services, the company delivers a scalable and reliable autonomous driving solution. Its long-term vision is to build a profitable business by enabling widespread adoption of self-driving vehicles across multiple transportation sectors.

On February 21, Pony AI Inc. (NASDAQ:PONY) announced the launch of paid robotaxi services across multiple locations and routes in China. The company emphasized that it is the first and only provider approved to operate robotaxi services on these high-demand routes.

Investors reacted positively to the news, driving the stock up 32% on the announcement day. However, the gains were largely erased over the following two trading sessions, leaving it with YTD returns of only 12%. Despite the volatility, the stock holds a consensus Buy rating, with a one-year median price target of $20, suggesting a potential upside of 25%.