Rivian Automotive (RIVN +15.03%) held its first "Autonomy & AI Day" last week, surprising investors with the news that it had developed its own in-house artificial intelligence (AI) chip. That gave investors a window into the company's path toward offering a fully autonomous vehicle.
Shares have marched higher since that event, including a 15% increase today to close at a 52-week high. Today's move came after one Wall Street analyst noted Rivian's in-house technology and lifted his firm's price target by 78%.
Image source: Rivian Automotive.
Baird analyst Ben Kallo issued a note today, raising his rating on Rivian to "buy" and increasing his price target to $25 from $14 per share, according to Barron's. That represents a 42% gain over Wednesday's closing price.
NASDAQ: RIVN
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Kallo acknowledged Rivian's progress toward fully autonomous vehicles, but his optimism was also driven by something investors already knew. Rivian will soon be offering a new, more affordable R2 SUV. The analyst feels the stock will also benefit as the R2 drives demand and brand recognition in 2026.
The new product cycle won't be the last for Rivian, either. The R3 crossover SUV will follow, potentially further boosting demand. Additionally, last week's autonomy event made it clear that Rivian seeks to deliver a vehicle with the highest level of complete autonomy. That may be a bit further into the future, but Rivian stock looks to have catalysts along the way to that ultimate goal, too.
