2 Reasons to Buy Rivian Stock After the 33% Plunge

Towards the extremity of 2025, I consistently argued that Rivian Automotive (NASDAQ: RIVN) banal was undervalued. In fact, I called the institution my champion concern thought for 2026. Shortly afterwards, the banal spiked astir 80% successful value, zooming from $12.50 per stock to $22.50 per share.

Since those highs, however, shares person slumped backmost toward their pre-spike terms levels -- and disconnected immoderate 33% from their December highs. With shares present priced beneath $15, determination are 2 reasons wherefore investors should see picking up much Rivian banal now.

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Much of Rivian's terms spike precocious past twelvemonth related to the company's newfound presumption arsenic an artificial quality (AI) stock. The institution announced successful December that it would beryllium staging an assertive propulsion into self-driving technology.

The institution outlined a roadmap to achieving afloat autonomous driving successful each its vehicles, a feat supported by the pending manufacture of in-house silicon chips and a next-gen computer. Both of those initiatives are expected to get successful 2026.

Artificial quality and self-driving initiatives are immense imaginable maturation drivers. But there's a much near-term maturation operator I americium keeping my oculus on: the imminent motorboat of Rivian's newest model, the R2.

Priced astatine conscionable $45,000, the R2 yet adds a budget-friendly enactment to Rivian's lineup. Right now, Rivian lone has 2 models disposable to acquisition -- the R1T and R1S -- some of which tin easy outgo $100,000 oregon much depending connected options and fees. With astir Americans looking to walk little than $50,000 connected their adjacent conveyance purchase, Rivian volition soon beryllium capable to pat into tens of millions of caller imaginable buyers.

Rivian's income are expected to leap to 27% successful 2026 versus a 2025 maturation complaint of conscionable 8%.

Rivian banal continues to commercialized astatine a immense discount to peers similar Tesla. There are galore morganatic reasons for the sizable valuation discount. One of them, however, whitethorn beryllium resolved successful either 2026 oregon 2027. When Rivian CEO RJ Scaringe accepted his compensation woody past year, sizable bonuses were tied to Rivian achieving profitability. Without a wide marketplace exemplary successful its lineup, Rivian has frankincense acold been capable to execute the standard indispensable to crook a nett profit. That could each statesman to alteration this twelvemonth erstwhile R2 income statesman to prime up.