Forget Betting Markets: The Best Prediction You Can Make Right Now Is Buying This AI Stock

When it comes to artificial intelligence (AI) stocks, there are numerous compelling options to choose from. But in general, the market has already discovered them. So while these companies' growth potential may be huge, much of that hoped-for growth has already been priced into their stocks.

If you're hoping to find an investment with truly massive upside potential, it may be wise to look for AI opportunities in stocks that the market doesn't typically associate with artificial intelligence. The company below, which most investors classify strictly as an electric vehicle (EV) stock, might actually be your best AI bet right now.

Rivian may be the next big AI stock

On the surface, Rivian (NASDAQ: RIVN) looks like a simple EV manufacturer. That's because, for the most part, it is. But the company has big plans for AI, because that technology is proving key for the development of self-driving vehicles.

As a recent report from the World Economic Forum stated, "Driving has proven to be a particularly tricky task for machines, given the infinite set of new scenarios that may arise during a journey. AI can be a key enabler in overcoming technological hurdles to vehicle autonomy by generating synthetic datasets."

A few months ago, Rivian held its first annual "AI day." The event held a few surprises. First, Rivian said it will be pursuing the manufacture of its own AI chips to reduce its reliance on outside vendors. An inability to source enough next-gen chips due to demand outpacing supply has hindered many AI businesses, particularly data centers. Rivian also said it will be rolling out a highly conversational AI voice interface this year for its R1 and R2 models. Universal hands-free driving on over 3.5 million miles of North American roads, meanwhile, is expected to be enabled in its vehicles by the end of 2026.

Image source: Getty Images.

All of these efforts are expected to culminate in full Level 5 autonomy somewhere down the line -- the ultimate goal. There is heavy competition when it comes to autonomy, both from other EV makers with significantly more capital and from Big Tech firms, which also have a steep capital advantage.

I'm skeptical of Rivian's ultimate ability to compete in both AI and autonomy, given its relatively small size. But there's no doubt that it is attempting to invest as aggressively in developing these technologies as it can. The stock's valuation, meanwhile, seems to more than account for these weaknesses. AI chip powerhouse Nvidia, for example, trades at 25 times sales. EV leader Tesla trades at 15 times sales. Rivian, however, trades at just 3.4 times sales.

To be sure, Rivian's business model and competitive advantages differ from those of Nvidia and Tesla. But it's rare to find a potential AI stock trading at such a bargain valuation. For diversified investors looking for maximum growth potential, Rivian could prove to be a worthwhile portfolio addition.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.