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.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
