Pony AI Inc. (NASDAQ:PONY) surged 7.28% on Tuesday to $14.59 per share after Macquarie issued an “outperform” rating, citing the company’s leadership in China’s robotaxi sector. Macquarie predicts PONY’s fleet to triple next year and benefit from a 20% decline in hardware costs. Pony AI aims to break even by 2030 through an “asset-light” strategy, selling driverless cars to operators and licensing its technology for a fee. Investors may find greater promise in other AI stocks with higher returns and limited downside risk.

Read more at Yahoo Finance: Pony AI (PONY) Climbs 7% as Macquarie Issues ‘Outperform’ Rating