SERV Stock Forecast & Price Target

Serve Robotics Inc. is positioned to capitalize on the growing demand for autonomous delivery solutions, with a significant revenue run rate projected between $60 million to $80 million from its deployment of 2,000 Gen3 robotic units. The company's strategic partnerships with major industry players enhance its market presence and potential top-line growth, as more establishments shift towards cost-efficient autonomous delivery methods. Additionally, Serve Robotics's focus on scalability in dense urban environments with high transaction values positions the company favorably for sustained growth and profitability in the evolving delivery service landscape.

Serve Robotics Inc. has experienced a significant stock decline of 32% year-to-date, primarily attributed to the loss of momentum following Nvidia's decision to divest its 10% stake in the company, which raised concerns among investors regarding Serve's growth prospects. The exit of a major backer, after investing approximately $12 million in multiple funding rounds, led to a further stock drop of around 55%, signaling perceived diminishing confidence in Serve's ability to deliver robust performance in the future. Additionally, Serve faces substantial challenges as it attempts to scale its last-mile delivery technology, which remains largely untested at scale and may encounter slower-than-anticipated adoption rates in markets beyond its initial customer base.