We recently compiled a list of the 11 Stocks That Will Bounce Back According To Analysts. In this article, we are going to take a look at where Pony AI Inc. (NASDAQ:PONY) stands against the other stocks that will bounce back.
Major US indexes finished in the green on Wednesday, May 7, after a volatile session as investors reacted to updates from the Federal Reserve and new trade developments. The S&P 500 rose by 0.43%, while the tech-heavy Nasdaq added 0.27%. The blue-chip Dow Jones Industrial Average increased by 0.7%
As anticipated, the Federal Open Market Committee decided to keep its benchmark overnight borrowing rate unchanged in a range between 4.25% to 4.5%, where it has been since December.
In its post-meeting statement, the Fed pointed out that the risks of both higher unemployment and higher inflation have risen. The Fed also said that uncertainty about the economic outlook has grown and that it will keep watching new data closely before making any changes. This announcement coincides with growing concerns about a global trade war that could send prices higher. This could make it difficult for the central bank to achieve its goal of bringing inflation down to 2%.
During the post-decision press conference, Fed Chair Jerome Powell stated that if the recently announced large increases in tariffs remain in place, they could slow economic growth, push inflation up in the long run, and increase unemployment.
Bloomberg reported on Wednesday that the Trump administration aims to end trade restrictions on AI. This helped boost some AI and tech stocks. However, earlier on Wednesday, President Trump told reporters that he is not ready to lower tariffs on China as a condition to start trade talks. This statement by the US President came ahead of meetings set to take place this weekend between US and Chinese officials in Switzerland to discuss trade issues.
To compile our list of the 11 stocks that will bounce back according to analysts, we looked for stocks that have lost at least 30% year-to-date as of May 5, 2025. Next, we focused on the top stocks that analysts believe have the most potential for growth. To find stocks that will bounce back, we narrowed down our selection by looking for stocks that analysts believe will gain at least twice as much as they have lost year-to-date. Finally, we ranked the 11 stocks that will bounce back based on their average price target upside potential according to analysts as of May 5, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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).
Pony AI Inc. (PONY): Among Stocks That Will Bounce Back According To Analysts
A fleet of autonomous vehicles driving down a sun-drenched highway.
Year-to-Date Performance: -36.14%
Average Price Target Upside Potential According to Analysts: 106.19%
Number of Hedge Fund Holders: 20
Pony AI Inc. (NASDAQ:PONY) is a leading autonomous mobility technology company. The company leverages its Virtual Driver technology, a full-stack autonomous driving technology that utilizes the company’s proprietary software, hardware, and services, to enable the large-scale production and deployment of autonomous vehicles. The company has a presence in China, Europe, East Asia, the Middle East, and other regions. Pony AI Inc. (NASDAQ:PONY) ranks among the stocks that will bounce back according to analysts.
The company is partnering with major automakers to make autonomous mobility more accessible. On April 23, 2025, Pony AI Inc. (NASDAQ:PONY) launched its seventh-generation autonomous driving system. The company also showcased the new Robotaxi lineup with Toyota, BAIC, and GAC at the Shanghai Auto Show. The new autonomous driving system features a 100% automotive-grade autonomous driving kit and delivers an extended product lifecycle with improved stability and safety for passengers. Pony AI Inc. (NASDAQ:PONY) also reported that design improvements have also reduced bill-of-materials costs by 70%. The company introduced three seventh-generation Robotaxi models at the Shanghai Auto Show. These included the Toyota bZ4X Robotaxi, BAIC ARCFOX Alpha T5, and GAC Aion V.
Overall, PONY ranks 8th on our list of stocks that will bounce back according to analysts. While we acknowledge the 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. 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.
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