Pony AI (PONY) Climbs 7% as Macquarie Issues ‘Outperform’ Rating

We recently published 10 Stocks Shining Bright Amid Wall Street’s Dull Spell. Pony AI Inc. (NASDAQ:PONY) is one of the top performers on Tuesday.

Pony AI bounced back on Tuesday from two consecutive days of losses, jumping 7.28 percent to finish at $14.59 apiece, as investors took heart from Macquarie’s bullish rating for the company, bolstered by its expansion plans.

In a market report, Macquarie issued an “outperform” rating on its first coverage of Pony AI Inc. (NASDAQ:PONY) on the back of its leadership in China’s robotaxi sector.

Additionally, the investment firm said that it expects Pony AI Inc.’s (NASDAQ:PONY) fleet to triple next year and benefit through more profitable operations from a projected 20 percent decline in hardware costs.

Pony AI (PONY) Climbs 7% as Macquarie Issues 'Outperform' Rating

Pixabay/Public Domain

Last week, Pony AI Inc. (NASDAQ:PONY) announced that it would embark on an “asset-light” strategy and newer generations of low-cost driverless cars to drive growth in a bid to break even by 2030.

Under the asset-light model, the robotaxi operator would join forces with third-party companies such as taxi operators and ride-hailing platforms to finance the deployment of its robotaxi fleet.

This means that instead of owning and operating the fleet, Pony AI Inc. (NASDAQ:PONY) would sell its driverless cars to operators and license its autonomous driving technology and fleet management expertise for a fee.

While we acknowledge the risk and potential of PONY 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 PONY and that has 10,000% 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.