Pony AI (Nasdaq: PONY) Up 30% Thursday, Does Wall Street Think This is the Next Big AI Stock?

Risk is back on, and Pony AI (Nasdaq: PONY) is galloping ahead by over 27% today after rising as much as 30% in the session. At $7 per share, PONY stock is trading at volume of over 13 million shares compared with an average of 2 million shares trading hands, suggesting Pony AI bulls are pouring into the stock with strong conviction.

With AI leader Nvidia (Nasdaq: NVDA) already trading at a market cap of $2.59 trillion, investors may be flocking to Pony AI in hopes that it is the next big AI stock. Pony AI’s latest development has been the release of its seventh-generation Robotaxi pilot, thrusting it deeper into the autonomous driving opportunity and all of the volatility that comes with being a high-profile AI stock.

AI FOMO 

Pony AI has a few positive catalysts, not least some FOMO in the magical AI and autonomous driving race. The advancement of its seventh-generation Robotaxi pilot is a bullish sign for its technology and role in the future of autonomous driving.

Pony AI is showcasing its lineup at the Shanghai Auto Industry expo with well known brands like Toyota, BAIC and GAC, featuring what the company described as “100% automotive-grade autonomous driving kit (“ADK”) with an extended product lifecycle, delivering enhanced stability and safety for passengers.” This signals partnerships with some very high-profile brands in China and beyond. Its latest design slashes costs by some 70% compared with the previous version. 

Pony AI CEO Dr. James Peng predicts 2025 will be the maiden year of the company’s mass-produced Robotaxi service, giving investors further reason to bet on the stock. 

PONY stock is also trading below its 52-week high of nearly $24 per share, suggesting that it could return to those levels and further fueling FOMO in the stock. Pony AI stock is currently trading 70% below those levels.

What Now? 

Investors have a risk-on appetite right now, but it could flip on a dime. As long as risk is in the equation, Pony AI stock could benefit, particularly if it lives up to expectations for achieving greater scale with Robotaxi in 2025. In the meantime, PONY stock gets both the attention and volatility that is inherent with AI stocks.