Nvidia invests in Serve Robotics, driving stock price up; Serve focuses on sidewalk delivery robots.

From Nasdaq: 2024-08-17 18:00:00

Nvidia (NASDAQ: NVDA) is a standout in the world of artificial intelligence (AI), with its GPUs being the standard for AI systems. Recently, Nvidia made a significant investment in Serve Robotics (NASDAQ: SERV), causing a surge in the stock price by 335%. Serve Robotics focuses on autonomous sidewalk delivery and has seen positive revenue growth.

Serve Robotics, a company specializing in sidewalk delivery robots, went public with a launch offering in April. They are targeting a $450 billion market for last-mile delivery using robots and drones. Serve already has a partnership with Uber to deploy delivery robots, with plans to expand its fleet significantly in the coming years.

Nvidia’s investment in Serve Robotics has generated excitement in the market, driving the stock price up significantly. Serve’s recent partnership with Shake Shack for food delivery services and solid financial results have also contributed to the positive outlook. However, Serve is still a small-cap company with high volatility and risk associated with its valuation.

Investors considering Serve Robotics should weigh the risks against the potential gains, as the stock is currently trading at 259 times forward sales. For those looking for exposure to Serve while mitigating risk, investing in Nvidia, which holds a stake in Serve, could be a more prudent strategy. Serve Robotics is a speculative investment with potential for high returns but comes with considerable risk.



Read more at Nasdaq: Meet the Newest Artificial Intelligence (AI) Stock in Nvidia’s Portfolio (Hint: It’s Not SoundHound AI)