Serve Robotics (NASDAQ: SERV) stock extended its gains in pre-market trading on Monday. The stock soared 187% on Friday after Nvidia (NASDAQ: NVDA) revealed a new investment in the company.
Nvidia recently increased its investment in Serve Robotics, a California-based robotics firm known for its zero-emission delivery robots.
According to a Securities and Exchange Commission (SEC) filing released Thursday, Nvidia purchased 62,500 shares of Serve Robotics at $4 per share last July. In April, the chipmaker acquired a promissory note and converted it into over 1 million SERV shares, priced at $2.42 per share.
This investment brings Nvidia’s total stake in Serve Robotics to around $12 million, representing about 10% of the company. Nvidia is not alone in this venture; it joins other major investors like 7-Eleven and Uber (NYSE: UBER), who have also invested nearly the same amount in the company.
Founded in 2017, Serve Robotics specializes in zero-emission robots that handle various tasks in public spaces, including food delivery. Despite its innovative approach, the company is relatively small, with 57 employees and an annual revenue of $1 million, indicating significant growth potential. This potential became apparent on Friday when the company’s valuation more than doubled, increasing from under $100 million to over $225 million.
For Nvidia, investing in Serve Robotics aligns with its strategy of supporting smaller, high-potential projects. The chipmaker has a history of investing in diverse ventures, such as SoundHound AI (NASDAQ: SOUN) and Nano X Imaging (NASDAQ: NNOX). These investments often lead to notable stock price movements.
Despite Friday’s rally being a major win for SERV investors, the stock is still down about 69% this year, even as the S&P 500 is up 16% over the same period.
Serve Robotics (NASDAQ: SERV) Stock Reaction
As of 07:58 a.m. (Eastern Time) Monday, SERV stock traded at $10.83, marking a 43.31% increase compared to the previous trading session.
