Citi Initiates Pony AI (PONY) at $29 PT Amid Robotaxi Inflection Point

Pony AI Inc. (NASDAQ:PONY) is one of the best performing new tech stocks to invest in. On September 29, Citi analyst Jeff Chung initiated coverage of Pony AI with a Buy rating and $29 price target. This sentiment was posted as Citi believes that the robotaxi sector is at an inflection point. The firm is generally positive on the robotaxi market in China.

Pony AI reported significant revenue growth and strategic progress in its Q2 2025 financial results, with the total revenue for the quarter reaching $21.5 million, which was a 76% increase year-over-year. This was driven by multiple revenue streams: Robotaxi Service Revenue was $1.5 million, up 158%, with fare charging revenue specifically growing by over 300%. Additionally, Licensing & Application Revenue experienced a rise of 902%, and reached $10.4 million.

Citi Initiates Pony AI (PONY) at $29 PT Amid Robotaxi Inflection Point

Despite the robust top-line growth, the company’s net loss widened. The reported net loss was $53.3 million, compared to $30.9 million in the same period last year. This was due to a 75% increase in total operating expenses, which amounted to $64.7 million. The company’s Robotruck services revenue also decreased by 10%.

Pony AI Inc. (NASDAQ:PONY), through its subsidiaries, engages in the autonomous mobility business in China, the US, and internationally.

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 this cheapest AI stock.

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