5 Best Small Cap AI Stocks to Buy According to Wall Street Analysts

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1. Pony AI Inc. (NASDAQ:PONY)

Market Capitalization: $3.98 billion

Analyst Upside: 136.81%

Number of Hedge Funds: 31

Pony AI Inc. (NASDAQ:PONY) is one of the Best Small Cap AI Stocks to Buy According to Wall Street Analysts. On May 8, Pony AI Inc. (NASDAQ:PONY) announced that the company experienced a sharp increase in robotaxi demand during the China Labor Holiday from May 1 to May 5.

During this period, the robotaxi service’s average daily orders witnessed 544% year-over-year increase. Management attributed this growth to fleet expansion and growing customer adoption from the early stage to commercial use in China.

The average paid orders were also up around 155% from the recent New Year holidays, suggesting recent rapid growth and not merely year-over-year growth. The growth is also driven by the 7th-generation robotaxi launched last year. Moreover, management is targeting more than 3,000 vehicles on the road by the end of the year. The company has also been forming industry partnerships, which are helping it deploy vehicles at scale.

Pony AI Inc. (NASDAQ:PONY) is a global leader in autonomous driving technology that develops, tests, and operates self-driving systems for Robotaxis, Robotrucks, and passenger vehicles. It focuses on L4-level autonomous driving, with major commercial operations and international testing, including partnerships with Toyota Motor Corp.

While we acknowledge the potential of PONY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PONY and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years. 

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