Nvidia and Uber back Serve Robotics, an AI company with high revenue growth potential.

From Nasdaq: 2024-12-09 04:26:00

Nvidia and Uber are backing Serve Robotics, a company that has developed autonomous delivery robots. The robots operate with level 4 autonomy, delivering orders with up to 99.94% reliability. With Nvidia’s technology, Serve’s latest Gen3 robot is faster and more powerful, leading to a 50% reduction in operating costs.

Serve’s revenue saw a 254% increase in Q3 but faces challenges due to high operating expenses. Uber and Nvidia own more than 20% of Serve’s outstanding shares, but Serve’s high valuation and financial losses raise concerns for potential investors.

Serve predicts significant revenue growth in 2025 as it deploys more robots. However, the company’s high price-to-sales ratio and financial losses suggest caution for investors. Despite the potential in the robot delivery industry, Serve’s financial situation may impact stock performance.

Investors should consider Serve Robotics’ financial challenges and high valuation before investing. The Motley Fool’s Stock Advisor team has identified other promising stocks for investment, highlighting the importance of thorough research and analysis before making investment decisions.



Read more at Nasdaq: Why Are Nvidia and Uber Backing This Tiny $400 Million Artificial Intelligence (AI) Company?