9 months ago
Rivian Shares Surge 18% on AI Chip Strategy
Rivian, a company that makes electric cars, had a big increase in its stock price because analysts liked their new plan for self-driving technology.
They are making their own special computer chips called RAP1, which will be used in their new cars starting in 2026.
These chips are better and cheaper than the ones they used before.
Rivian also announced a new driver-assistance package called Autonomy+ that costs less than Tesla's similar service.
The company's CEO said this was a big commitment that took years to develop.
Analysts are excited about this plan and think it will help Rivian compete better in the market.
Rivian shares surged 18% to $19.37, the highest in nearly two years, driven by positive analyst response to AI chip strategy.
The company announced a shift from Nvidia processors to its own Rivian Autonomy Processor 1 (RAP1) chips, manufactured by TSMC.
RAP1 chips will power the new Autonomy Compute Module 3, offering four times the performance of current Nvidia-powered systems.
Rivian introduced Autonomy+, a driver-assistance package priced at $2,500 one-time or $49.99/month, undercutting Tesla's FSD system.
The new chips and systems are slated for the R2 model, with production starting in the first half of 2026 and 'eyes-off' functionality planned for 2026.
- Who
- Rivian Automotive, analysts, financial institutions, CEO RJ Scaringe
- What
- Rivian shares surged 18% due to positive analyst response to AI chip strategy
- Where
- Global financial markets
- When
- Friday, following the Autonomy and AI Day event
- Why
- Analysts praised Rivian's custom AI chip strategy and competitive pricing for driver-assistance
Key facts
- Stock Price
- $19.37
- Year-to-Date Gain
- 24%
- Price Target
- $23 per share
- RAP1 Chips
- Manufactured by TSMC
- Autonomy+ Price
- $2,500 one-time or $49.99/month
- Tesla FSD Price
- $8,000 one-time or $99/month
- R2 Production Start
- First half of 2026
- Eyes-Off Functionality
- Planned for 2026
Quotes
RJ Scaringe
Chief Executive Officer of Rivian
“This is not a bet one takes lightly, this is a huge commitment that’s taken us years. Usually, you can’t lower cost and improve performance. But here, we improved performance dramatically and simultaneously lowered cost by hundreds of dollars per vehicle.”
livemint.com
Sources
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