Key Points
A large percentage of AI stocks already trade at a rich premium. So despite these companies’ promising long-term revenue growth potential, investors may not profit as much as they predict.
To realize the biggest profits, AI investors must find AI stocks trading at low valuations. This is easier said than done. The trick isn’t necessarily to buy out-of-favor AI stocks — as very few exist at this time — but to find stocks that the market doesn’t yet realize are AI stocks. This way, investors can buy into AI stocks without the AI stock premium.
After falling 20% in value since 2026, the business below looks like a promising bet for AI investors looking to avoid the AI premium.
The market still doesn’t appreciate this is an AI stock
Rivian Automotive (NASDAQ: RIVN) is my favorite AI stock for the second half of 2026. But wait, isn’t Rivian an electric vehicle (EV) stock? It is. But just like Tesla, the company has pivoted hard toward AI to power its autonomous driving ambitions.
At one time, the market did appreciate Rivian’s AI pivot. Last year, from Nov. 4 to Dec. 19, shares nearly doubled in value. What was the cause? The surge was at least partially due to the company’s first “AI Day,” which was held on Dec. 11.
During that event, Rivian announced several key strategy shifts. The company’s future would no longer be tied simply to producing consumer-grade vehicles. Instead, technology would become the unmistakable focus. For example, Rivian now plans to produce its own AI chips, invest so heavily into self-driving software that it no longer expects to be profitable by 2027, and integrate AI more heavily into its production process to reduce costs and improve throughput.
Quite quickly, however, the hype surrounding Rivian’s AI event faded. Shares have lost nearly one-third of their value since Dec. 19. But when you look at the numbers, there’s plenty of reason to remain bullish. This year, analysts expect sales to grow by around 31%. Next year, sales growth should jump to 64%.
This growth is largely due to Rivian’s launch of its first affordable vehicle priced under $50,000: its R2 SUV. Production and sales growth are just now beginning to scale. Long-term, however, Rivian’s pivot to AI is already paying off. In March — just a few months after its first AI event — Uber Technologies placed a $1.25 billion order for up to 50,000 Rivian R2s. Uber wants to scale its own robotaxi service. And it’s apparently so bullish on Rivian’s technology that it wanted to make sure it could secure plenty of vehicles as that business emerges.
It’s not yet clear how this order will translate into accounting revenue, given it was structured as a direct investment. But it’s a clear sign that well-funded robotaxi operators like what they see coming out of Rivian. Rivian shares still trade at just 3.4 times sales. As its AI pivot gains traction, expect that valuation to improve.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.
