Surge in Serve Robotics Shares Following Nvidia Stake AnnouncementSurge in Serve Robotics Shares Following Nvidia Stake Announcement Shares of Serve Robotics experienced a significant surge of 241% on Friday following the announcement of a stake acquisition by Nvidia. Nvidia’s investment of $3.7 million in Serve was made through convertible debt that was subsequently converted into shares in April. Serve Robotics specializes in the development and operation of self-driving delivery vehicles designed for last-mile delivery services. The automated delivery boxes navigate sidewalks, delivering orders for platforms such as Uber Eats. The company had previously raised funding from investors such as 7-Eleven and Uber, which invested $11.5 million in Serve Robotics. As of Friday, Serve Robotics had a market capitalization of approximately $275 million, having grown from a valuation of under $100 million before the surge. Nvidia’s investment in Serve Robotics aligns with its commitment to supporting early-stage companies in the fields of AI and robotics. This follows recent announcements of investments in SoundHound AI and Nano X Imaging, which also resulted in substantial share price increases. Serve Robotics’ operations are currently centered in Los Angeles, with plans to expand to cities including San Diego, Dallas, and Vancouver. The company generated $1 million in revenue in 2022.
Operating Robotics
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Shares of Serve Robotics surged 241% after Nvidia announced a stake in the company.
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Nvidia’s $3.7 million investment in Serve is convertible debt that was converted in April.
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Serve Robotics focuses on self-driving delivery vehicles for the last mile delivery.
Shares of Serve Robotics soared as much as 241% on Friday after Nvidia announced a stake in the company.
According to a Form 4 filing with the SEC on Thursday, Nvidia purchased 1.05 million shares of Serve in April at a price of $2.42 per share, representing a total investment of just over $3.7 million.
The stock purchase was based on a 6.0% convertible note that Nvidia held in the company. The note was converted into shares following Serve Robotics’ IPO in April.
Founded in 2017, Serve Robotics develops and operates self-driving vehicles focused on last-mile delivery.
The automated delivery boxes drive along sidewalks, often delivering orders for delivery platforms such as Uber Eats.
“Why are they delivering 2-pound burritos in 2-ton trucks?” Serve asks on its website.
Serve Robotics is small, with a market cap of about $275 million as of Friday. Before Friday’s surge, it was worth just under $100 million. The company generated just $1 million in revenue last year.
According to Serve’s May 2024 investor presentation, Nvidia has invested just over $12 million in the company. Other investors include 7-Eleven and Uber, which invested $11.5 million in Serve Robotics.
The company launched operations in Los Angeles as its first test city. As part of its “next phase” of expansion, it is considering new deployments in San Diego, Dallas and Vancouver.
This isn’t the first time Nvidia has announced that it is investing in early-stage companies focused on AI and robotics.
In February, Nvidia announced relatively small investments in SoundHound AI and Nano X Imaging, resulting in similarly large share price moves.
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