Why Pony AI Inc. (PONY) Skyrocketed On Tuesday

We recently published a list of Here’s What Fueled These 10 Firms’ Surge. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against other Tuesday’s best-performing stocks.

The stock market ended the trading session in the red on Tuesday, with all major indices giving up earlier gains, as investors sold off positions while waiting for the results of the Federal Reserve’s policy decision, while digesting President Donald Trump’s new tariff policies.

Among all the major indices, the Dow Jones fell the heaviest, down 0.95 percent. The tech-heavy Nasdaq followed with a 0.87-percent decline, while the S&P 500 finished with a 0.77-percent drop.

Beyond the major indices, 10 firms stood out with strong gains amid a flurry of fresh developments, including new partnerships, optimistic outlooks, and impressive earnings performance. In this article, we name Tuesday’s 10 best-performing stocks and detail the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Why Pony AI Inc. (PONY) Skyrocketed On Tuesday

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Pony AI Inc. (NASDAQ:PONY)

Pony AI skyrocketed by 47.63 percent on Tuesday to close at $14.32 apiece as investor sentiment was boosted by its partnership with Uber Technologies Inc. (NYSE:UBER) to ramp up robotaxi operations in the Middle East.

Under the deal, Pony AI Inc.’s (NASDAQ:PONY) robotaxis will be launched in Uber Technologies Inc.’s (NYSE:UBER) mobile application in a key market in the Middle East later this year.

During the initial pilot phase, the vehicles will have a safety operator onboard until the companies’ fully autonomous commercial launch.

The partnership followed Pony AI Inc.’s (NASDAQ:PONY) recent announcement that it was officially making a foray into the robotaxi industry.

Additionally, the partnership will also cover additional international markets in the future.

“At Pony.ai, our vision is to develop autonomous driving technology that is not only safe and reliable but also scalable, transforming daily transportation,” said Dr. James Peng, its co-founder and CEO.

Overall, PONY ranks 1st on our list of Tuesday’s best-performing stocks. While we acknowledge the potential of PONY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PONY but that trades at less than 5 times its earnings, check out our report about this 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.