Why EHang Holdings Ltd (EH) Is Surging In 2025?

We recently published a list of Why These 15 Aerospace Stocks Are Surging In 2025. In this article, we are going to take a look at where EHang Holdings Limited (NASDAQ:EH) stands against other aerospace stocks that are surging in 2025.

The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology.

Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft.

Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth.

Methodology

For this article, I screened the best-performing aerospace stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Why EHang Holdings Ltd (EH) Is Surging In 2025?

A modern commercial jet airliner decorated with the company logo in flight against a clear blue sky.

EHang Holdings Limited (NASDAQ:EH)

Number of Hedge Fund Holders In Q4 2024: 11

EHang Holdings Limited (NASDAQ:EH) is a leading Urban Air Mobility technology platform company. It specializes in autonomous aerial vehicles for passenger transportation.

EHang Holdings (NASDAQ:EH) is up significantly so far in 2025 due to the company’s Q4 2024 revenue growing 190.2% year-over-year to $22.5 million and beating guidance by 20%.

Fiscal 2024 revenue also grew 288.5% year-over-year to $62.86 million. EHang Holdings (NASDAQ:EH) delivered 2216 eVTOL units and achieved its first annual non-GAAP profitability.

The consensus price target of $24.75 implies 11.09% upside.

EH stock is up 41.51% year-to-date.

Overall, EH ranks 3rd on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of EH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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