Rivian (RIVN), the former struggling electric car company, traded at a new yearly high. RIVN shares went vertical after Rivian joined the list of AI chip and automation companies. Rivian (RIVN) traded at a 12-month high above $22, with a vertical expansion in the past day. It only took days for RIVN to accelerate its gains, after Rivian announced a pivot to building its own AI chip on December 11. Rivian Automotive Inc. (RIVN) rallied to a one-year high, sparked by the company’s pivot to AI chip engineering. | Source: Google Finance RIVN traded at $22.62, breaking into new 12-month highs. The shares are still below their initial peak above $86, and are trading close to five-year lows. RIVN performance reflects the company’s years of relative obscurity compared to other EV producers. Rivian pivots to AI, sparks a stock rally After announcing an AI push, Rivian still had to overcome its previous failure as a car company. RIVN shares spent years at suppressed prices, down to lows of $10, before breaking out in the past week. As Cryptopolitan reported , Rivian’s push was also to rebuild its reputation. Rivian’s move into AI, automation, and proprietary chips happens at a time when other companies try to pivot into some form of AI usage. Rivian has yet to show real results as a chip producer, recalling Oracle’s failed attempt to adopt AI infrastructure . Can RIVN make a lasting turnaround? RIVN rises in a climate where traders and investors seek all possible growth stocks linked to the AI narrative, as well as real AI capabilities. The potential for a RIVN rally attracted speculative investors, including risk-takers from WallStreetBets. RIVN was also taken up by crypto investors, who are also closely watching stocks for their upside potential and the potential for sudden rallies. RIVN shares are moderately shorted, close to their usual historical levels at 18.3% of the float. In November, short positions reached over 20% of the float. RIVN still has a reasonable 2.59 days to cover short open interest, with new shares flowing in to cover positions as of December 19. Despite the hype around the shares, there is no outsized and irrational short squeeze yet. However, traders are chasing the current price expansion, expecting a hike as high as $27. Wedbush raised the RIVN target to $25 in 2026, up from a previous target of $16. Rivian still gets more than 95% of its revenues from car sales, expecting a boost from the R2 SUV for the US market. The current talk of AI is happening without a real product pipeline, and is seen as a risk for a sharp reversal. On the positive side, Rivian is also expected to get a boost from partnerships with other AI companies and use cases for its AI chip. Some traders are comparing Rivian to Robinhood (HOOD), which broke out after a two-year period of trading near its lower range. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
