** Brokerage Wedbush raises PT for EV-maker Rivian Automotive RIVN.O to $25 from $16, implying an upside of 23.3% to stock's last close of $20.28
** Wedbush expects launch of R2 SUV in 1H26 to drive demand and deliveries; says this product is expected to fill a gap of affordable SUVs in EV landscape
** Wedbush notes co's plans to develop an in-house AI chip to replace Nvidia's NVDA.O GPUs in future vehicles that are specifically designed for vision-centric physical AI to power its third-gen autonomous platform
** Brokerage says RIVN's software business, which is nearing a $500 mln per quarter revenue run rate, provides incremental upside to its gross margin as its a much higher-margin business
** Management has focused incrementally on improving cost of good sold impact and margin profile over the past few quarters by lowering costs across various parts of the business, Wedbush says
** RIVN shares marginally down premarket
** Up to last close, RIVN had gained 52.5% YTD
(Reporting by Arnav Mishra in Bengaluru)
((Arnav.Mishra@thomsonreuters.com;))
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