We recently compiled a list of the 10 Best Emerging Technology Stocks to Buy Now. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against the other emerging technology stocks.

The technology sector is constantly evolving, with emerging technology companies leading the charge in groundbreaking innovations. From quantum computing and artificial intelligence (AI) to biotechnology and autonomous systems, these companies are reshaping industries and unlocking new economic opportunities. Emerging technology firms focus on disruptive advancements that have the potential to transform traditional markets. These businesses operate across various fields, including AI, quantum computing, genomics, space technology, and robotics.

AI remains the Driving Force Behind Emerging Technologies

Among the technologies, AI stands out as the most influential technology of today. Many other advancements, such as automation, autonomous driving, and DNA analysis, are now seen as derivatives of AI. The World Economic Forum’s January 2025 white paper highlights how emerging technologies could significantly impact productivity by 2030. The commercialization of disruptive innovations—particularly AI—has the potential to drive substantial economic growth. According to the World Bank, a technology shock could increase productivity by 1.5% in advanced and 4.5% in emerging economies over a decade. However, AI’s actual impact will depend on how effectively businesses integrate it into their operations.

The report also underscores the importance of overcoming key challenges such as access to capital, talent shortages, and digital infrastructure gaps to fully realize productivity gains. While frontier technologies hold immense promise, broader adoption of accessible innovations can drive widespread economic improvements. For instance, advancements in energy and irrigation technologies are projected to enhance agricultural productivity, with precision farming increasing crop yields by up to 15%. Addressing these challenges is critical to harnessing the full potential of technology-driven growth.

In September 2024, McKinsey released an analysis of 15 key technology trends, highlighting the growing interest, innovation, and investment in robotics. Their experts noted that robots are becoming more versatile, expanding beyond traditional roles. With the integration of generative AI, robotics is now enhancing analytical capabilities, particularly in areas like inventory management.

The McKinsey report also pointed to rising interest in electrification, renewable energy, and quantum computing. Advances in cloud computing and connectivity are accelerating the global spread of innovations, shortening the time from scientific discovery to large-scale implementation. While this rapid progress drives economic and societal benefits, it also presents challenges, as disruptive technologies may outpace society’s ability to adapt. The report emphasizes the need for thoughtful planning to manage the broader implications of large-scale technological adoption.

Despite these challenges, the future of emerging technology companies remains highly promising, with continued innovation and investment set to reshape industries and economies worldwide.

We explored some of the relevant emerging technologies and have curated a list of 10 best names. While we looked at companies with as low as $300 million in market capitalization, the majority of our shortlisted companies are above $1.0 billion in market cap. Let’s have a look at these 10 companies.

Our Methodology

To determine the 10 best emerging tech stocks to buy now, we conducted extensive research to identify U.S.-listed companies at the forefront of innovative, emerging, and disruptive technologies. Our selection criteria included a market capitalization of at least $300 million. Additionally, we focused on stocks with a minimum potential upside of 10%, highlighting those with strong growth prospects. From the companies that met these criteria, we narrowed down the top 10 and ranked them in ascending order based on hedge fund ownership, using data from Q4 2024. This approach ensures that the selected stocks not only exhibit high innovation potential but also attract hedge funds’ interest.

Note: All pricing data is as of market close on March 7.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A scientist at a computer station, surrounded by a neural network of artificial intelligence code.

Pony AI Inc. (NASDAQ:PONY)

Focus Area: Autonomous driving technology

Potential Upside: 32%

Number of Hedge Fund Holders: 20

Pony AI Inc. (NASDAQ:PONY) is an autonomous driving technology company focused on developing self-driving solutions for both passenger and commercial transportation. Its AI-driven mobility offerings include robotaxi services and autonomous freight transport, aiming to revolutionize the future of mobility.

Pony AI Inc. (NASDAQ:PONY) competes in the Chinese autonomous driving market, with the likes of Tesla Inc. (NASDAQ:TSLA). The company leverages its proprietary Virtual Driver technology, an advanced self-driving system designed to work across multiple vehicle types. By integrating its custom-built software, hardware, and services, the company delivers a scalable and reliable autonomous driving solution. Its long-term objective is to establish a sustainable business model by facilitating the widespread adoption of self-driving technology across various transportation sectors.

Unlike competitors that rely on vision-based approaches, Pony AI Inc. (NASDAQ:PONY) employs a hybrid sensor system, incorporating LiDAR, cameras, and radar to enhance safety and precision in navigation. The company focuses on Level 4 autonomous driving, which refers to fully automated driving capabilities without human intervention under specific conditions.

Recently, Pony AI launched paid robotaxi services across multiple locations and high-traffic routes in China, making it the first and only company authorized to operate robotaxi services on these major routes. This milestone highlights the company’s progress in commercializing autonomous ride-hailing. Recognizing this potential, Deutsche Bank analyst Bin Wang had initiated coverage on Pony AI Inc. (NASDAQ:PONY) in mid-January with a Buy rating and a $20 price target. Wang had emphasized the huge growth potential in the robotaxi market, estimating that the company's ‘Robotaxi’ and ‘Robotruck’ businesses will account for an increasing share of total revenue—rising from 58% in 2024 to 97% by 2030.

Overall PONY ranks 7th on our list of the best emerging technology stocks to buy now. 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. 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 the 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.