Most buyers consider Rivian (NASDAQ: RIVN) as an electrical car (EV) inventory. Certainly, the corporate does concentrate on manufacturing EVs. However lately, I argued that possibly Rivian must be seen extra as a synthetic intelligence (AI) inventory. For those who perceive why I feel that is the case, you may rapidly see how Rivian grew to become my high development inventory to purchase in 2026 (and past).
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I am enthusiastic about Rivian inventory for 3 causes.
First, the corporate expects to begin deliveries of its first EV mannequin priced below $50,000 subsequent month. Tesla arguably has the launch of its first inexpensive mannequin — the Mannequin 3 — to thank for its first sizable development spurt.
Second, identical to Tesla, Rivian is investing closely to develop its AI capacities. Why is AI so essential for EVs? As a result of specialists more and more agree that AI will show key to realizing full self-driving capabilities.
As I lately outlined, Rivian lately launched a brand new initiative strictly targeted on bringing AI to its manufacturing facility ground to enhance manufacturing effectivity. It is also ramping funding in its personal in-vehicle AI assistant whereas aiming to launch a brand new “Common Fingers-Free” function on choose fashions this 12 months. Most impressively, the corporate hopes to someday design and manufacture its personal AI chips, fixing a key business provide subject.
It is unclear whether or not Rivian’s AI ambitions will repay. However one factor appears clear to me: The market is not assigning a lot worth to this chance. Rivian is at the moment valued at simply $19 billion — not what you’d anticipate for an organization that would someday compete within the world robotaxi market or license its self-driving expertise to current companions like Volkswagen.
This 12 months, I anticipate the launch of the Rivian R2 to garner many of the headlines. However that launch ought to give Rivian tens of hundreds of extra automobiles on the highway to additional prepare and take a look at its AI fashions. That is nonetheless a long-term wager, however buying and selling at simply 3.4 instances gross sales, Rivian’s potential far exceeds its present market cap.
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