Rivian Automotive (RIVN) Unveils Custom AI Chips and Autonomy Strategy, Needham Boosts Price Target

Rivian Automotive, Inc. (NASDAQ:RIVN) ranks among the best stocks under $25 to buy now. On December 12, Needham analyst Chris Pierce boosted Rivian Automotive, Inc. (NASDAQ:RIVN)’s price target to $23 from $14, retaining a Buy rating on the company’s shares. The boost comes after Rivian’s inaugural Autonomy & AI Day, where the company introduced its customized silicon chips, next-generation autonomy service, and extensive AI integration plan.

During the event, Rivian Automotive, Inc. (NASDAQ:RIVN) unveiled its third-generation Autonomy Compute Module (ACM3), which produces 1600 sparse INT8 TOPS (Trillion Operations Per Second), and its custom-built Rivian Autonomy Processor (RAP1). The company hopes to include this technology together with LiDAR into its planned R2 vehicles starting in late 2026.

Additionally, Rivian Automotive, Inc. (NASDAQ:RIVN) revealed plans to introduce Autonomy+, an autonomy subscription service, in early 2026. The service will cost $2,500 up front or $49.99 per month. The company also unveiled Rivian Assistant, an AI-powered next-generation speech interface that will be compatible with both first and second-generation R1 cars.

Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, and manufactures category-defining electric vehicles and accessories. Its operations are divided into the following segments: Automotive, Software, and Services.

While we acknowledge the potential of RIVN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIVN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.