Nvidia-Backed Serve Robotics Stock Soars, Retail Following Explodes 256% On Stocktwits

Serve Robotics (SERV) is on fire. The delivery robot company's stock price nearly tripled in the last session, and was last up 42% at  $10.71 on Monday — the third-biggest gainer across U.S. stock indices. Naturally, there’s been a surge in retail investor interest.

Stocktwits data reveals SERV as a top-10 most actively discussed stock and the second-most watched on the platform. It gained a whopping 256% increase in followers over just a week.

Retail chatter, however, is a mixed bag, with some investors bullish and predicting even higher prices ahead of the company’s annual shareholder meeting on Monday, while others advised caution and selling on the news.

The primary factor here is the disclosure of a 10% stake in Serve by chipmaking giant Nvidia (NVDA), which translates to over $37.80 million based on today's price and instantly puts Serve in the spotlight for many investors. 

Nvidia's reputation as a leader in AI chipmaking makes their investment a significant vote of confidence for Serve's technology, which focuses on last-mile delivery via sidewalk robots currently operating in cities like San Francisco and Los Angeles.

Serve spun off from Uber (UBER) in 2021 after Uber's acquisition of Postmates, which originally owned the robotics company. While Serve reported revenue growth in 2023 ($207,545 compared to $107,819 in 2022), it's still operating at a loss ($1.50 million in 2023), according to TechCrunch. 

However, Serve remains optimistic about its future, citing the potential for significant growth fueled by its public offering in April. Its stock price has more than tripled since that splashy market debut. 

With a major tech player like Nvidia in its corner and growing retail investor interest, Serve Robotics seems well-positioned to extend its gains. However, as with any young, high-growth company, some retail investors are carefully considering Serve's current financial situation and the inherent risks involved.

Photo courtesy: Serve Robotics