Recent performance in AI stocks has shown significant divergence, with some companies struggling to translate investments into profits, while others are plagued by overinflated stock prices. However, beyond well-known companies like NVIDIA and SanDisk, there are still potential stocks with soaring revenues and profits simultaneously. Among them, autonomous driving technology company Pony.ai (PONY) is seen by Wall Street as a “stealth winner” with substantial upside potential.
Among the 19 Wall Street analysts covering the stock, as many as 95% have given it a “Buy” rating, with a median price target of $22 per share, implying a potential return of 47% over the next 12 months. The highest target price of $40 corresponds to a 168% increase, while even the lowest target price of $15 suggests a modest upside of about 1%, reflecting analysts’ unanimous optimism about its prospects.
Pony.ai, alongside companies like Alphabet’s Waymo, is a leader in the autonomous driving technology field. The company adopts a light-asset operational model, not building its own vehicles but providing technological solutions to automakers. Its clients include Toyota, GAC Group, BAIC Group, SAIC Motor, and Sany Heavy Truck, among others. Apart from Toyota, all are Chinese companies, making China its core market. In late January this year, Pony.ai signed an agreement with Beijing ATBB Mobility Services to deploy autonomous taxi fleets in major cities.
According to its Q3 2025 earnings report, its autonomous vehicle fleet has reached 961 units and is expected to exceed 1,000 by the end of the year. The company plans to triple its fleet to over 3,000 units by the end of 2026. Meanwhile, it is actively expanding into eight overseas markets and has established partnerships with ride-hailing platforms such as Uber Technologies and Bolt. However, the company currently lacks commercial operational permits in the United States, holding only limited testing licenses in California—its fully driverless permit was suspended due to a 2021 incident.
The latest earnings report shows that Pony.ai’s quarterly revenue increased by 71% year-over-year to $25.4 million, with total revenue for the first three quarters growing by 54% to $61 million. Despite rapid revenue growth, the company has not yet achieved profitability, primarily due to continuous investments in R&D: R&D spending surged by nearly 80% year-over-year last quarter. However, management revealed that its more advanced seventh-generation autonomous taxis have achieved per-vehicle economic break-even in key markets, meaning per-vehicle revenue already covers operational costs.
Analysts are optimistic about the growth momentum driven by its new cooperative projects and fleet expansion plans. Although autonomous driving is an emerging market and the company is not yet profitable, its future growth potential is significant. Investment professionals note that for such growth-stage companies, controlling allocation proportions within a diversified portfolio remains a rational choice.
