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Rivian (RIVN) Gains Momentum as R2 Launch Stays on Track

Rivian Automotive Inc (NASDAQ:RIVN) is one of the AI Stocks to Watch. Wall Street believes Rivian Automotive Inc (NASDAQ: RIVN) is not for the faint of the heart. On February 13, Deutsche Bank analyst Edison Yu upgraded Rivian Automotive Inc (NASDAQ: RIVN) to Buy from Hold, raising its price target to $23 from $16.

Rivian stock is not for the faint of the heart and we certainly don’t expect a straight path forward but we see early signs that the company’s prospects are inflecting.

The firm believes that company’s 2026 outlook in the near-term looks less risky. Sales expectations are reasonable, and vehicle costs continue to improve. The upcoming R2 launch also appears to be on track for the second quarter.

Rivian’s case seems to garner further support from other competitors retreating or “slow-walking” their EV transition plans and Tesla discontinuing its higher-end models. For the long term, Deutsche Bank noted that Rivian’s efforts for a vertically integrated autonomy stack, which includes chip design, may help create a moat especially if VW deepens its support.

A Riivan vehicle. Photo from Rivian website

While the company is still spending a lot of cash, its finances are supported by another $2 billion investment and a DOE loan.

Moreover, while cash burn is still high, the balance sheet is supported by another $2bn from VW this year and the DOE loan, which provides a mid-term capital safety net for the Georgia expansion. Overall, we think the risk-reward is attractive and upgrade the stock from Hold to Buy, taking our price target up to $23 (vs. prior $16).

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

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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