Needham Turns More Bullish on Rivian (RIVN), Citing AI Strategy and R2 Launch

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the Trending AI Stocks on Wall Street. On December 12, Needham raised its price target on the stock to $23.00 from $14.00 while maintaining a “Buy” rating. The price target raise follows the company’s AI & Autonomy Day, with analysts citing vertical integration and R2 launch expectations strengthening long-term conviction.

Analyst Chris Pierce sees clearer signs of progress across Rivian’s tech roadmap. He believes that the EV maker has visible catalysts in software, autonomy, and its upcoming R2 launch.

Pierce contended that RIVN’s push into software and AI was the main highlight of the AI & Autonomy Day. Since the company builds most of its tech in-house, it has been able to roll out new features quickly.

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Moreover, since buyers are likely to expect better driver-assist tools, cleaner interfaces, and smarter systems overtime, this setup will allow it to position itself better than its competitors.

“The event increased our confidence in RIVN’s positioning as software (and now AI)-defined vehicles increasingly become industry table stakes, with RIVN’s vertical integration allowing for fuller control driving faster learning and feature iterations across driver interface and autonomy technology, underpinning a durable competitive advantage.”

While AI updates are crucial for the stock, the firm noted that the company’s R2 SUV is the main reason for its bullish stance. Expectations for the R2 remain low, giving Rivian a chance to beat market view when its model arrives in the first half of 2026.

“Our updated target is 20x EV/FY28E adj EBITDA, discounted back from 15x prior, with percolating R2 enthusiasm supporting multiple expansion ahead of a 1H26 launch.”

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services.

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