While Micron’s products are in high demand in AI, the company has not put all of its eggs in the AI basket. The firm’s customer base includes PC and mobile device makers as well as automotive manufacturers.

Getting to results, we find that Micron’s last quarterly report covered fiscal 1Q25. The company generated $8.71 billion in total revenue, up an impressive 84% from the prior-year period – just edging ahead of the estimates. At the bottom line, Micron’s non-GAAP net income of $2.09 billion translated to a diluted EPS of $1.79, 2 cents better than expected.

For Bank of America analyst Vivek Arya, there are two key points to consider here. First is the strength in AI and related businesses; second is the softness in the PC and mobile device segment. The 5-star analyst writes, “The company benefits from several secular trends in the data center and cloud computing markets, particularly in AI (high-bandwidth memory and data center-grade DRAM and SSDs). However, we see muted near-term memory pricing environment on lackluster PC/phone demand, putting pressure on GM for the foreseeable future.”

Arya, who ranks in the top 2% of Wall Street stock experts, has a Neutral (Hold) rating on MU shares, although his price target of $110 points toward a one-year gain of 22.5%. (To watch Arya’s track record, click here )

Arya, however, is in a minority here. Overall, Micron gets a Strong Buy consensus rating from the Street’s analysts, based on 22 recent reviews that include 20 Buys to just 2 Holds. The shares are currently priced at $89.87, and their $136.43 average price target is significantly more bullish than the Bank of America stance, implying a one-year gain of 52%. (See MU stock forecast )

Pony AI, Inc.

The second stock on our list, Pony AI, is a relative newcomer to the tech scene – and a definite newcomer to the public trading markets, having held its IPO in November of last year. The company, also styled Pony.ai, is a Chinese firm operating in the field of autonomous vehicles, so the link to AI tech is clear. Pony has headquarters offices in both Guangzhou, China, and in Fremont, California, and has a working partnership with Toyota, the world’s second-largest automaker.

On the practical side, Pony is developing its AI tech for a clear purpose: as a control system for robotaxis and autonomous trucks. The company has installed its systems on 10 vehicle platforms, including eight models of passenger vehicles and two long-haul trucks, and its fleet has accumulated over 39 million kilometers of autonomous driving mileage across a wide range of geographies in China. Pony’s fleet, at the time it listed for the IPO, included over 250 robotaxis and 190 long-haul trucks.

The company has made its robotaxi fleet available as a service in several Chinese cities—Beijing, Shanghai, Guangzhou, and Shenzhen—and gives customers access to the taxis via a smartphone app. The program was launched last year, in April, in partnership with Toyota, which provided the vehicle platforms for the autonomous driving technology. Pony’s robotrucks are billed as a ‘new generation’ of logistics technology, offering greater efficiency and affordability to the long-haul shipping market. The freight network operates in several key areas of eastern China, forming a set of north-south delivery corridors.

Pony announced its IPO pricing at the end of November last year. The company put 20 million American depositary shares (ADSs) on the market, at $13 apiece. Each ADS represents a single class-A share in Pony. The company has confirmed that it raised $260 million through the IPO.

Covering this autonomous vehicle firm for Bank of America, analyst Ming Hsun Lee sees a solid prospect for long-term success, as he says of the company and its stock, “Pony leverages its AI capabilities to create a robust planning and control module that is capable of smoothly navigating complex road layouts… We expect Pony to ramp up its fleet size and turn profitable in 2029, thanks to a better economy scale and improving unit profitability… We like Pony’s industry-leading proprietary Virtual Driver technology featuring safety, cost-effectiveness and abilities to tackle difficult situations… We see Pony is ahead of robotaxi/robotruck peers in China in terms of accumulated testing mileage, testing speed and licensing progress.” (To watch Lee’s track record, click here )

Putting this into quantifiable terms, Lee gives PONY shares a Buy rating, with an $18 price target that implies an upside potential of 22.5% on the one-year horizon. Lee is the first analyst to go on record for Pony since the IPO. The stock is currently selling for $14.68 on Wall Street. (See PONY stock analysis )

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.