SERV Stock Forecast & Price Target

Serve Robotics Inc. is well-positioned for growth in the last-mile delivery sector with its innovative, low-emission robotic solutions, targeting dense urban environments that promise higher transaction values and consistent demand. The company boasts a significant revenue run rate estimated between $60 million and $80 million, stemming from its deployment of 2,000 Gen3 robots, which underscores its operational scale and market penetration. Additionally, strategic long-term partnerships within the industry are likely to enhance revenue potential, further solidifying Serve Robotics as a leader in the autonomous delivery market.

Serve Robotics has experienced a significant decline of 32% year-to-date, largely attributed to the loss of momentum following Nvidia's decision to divest its 10% stake in the company, which may have led to heightened investor concerns regarding Serve's growth prospects. The departure of Nvidia, a key investor that had contributed approximately $12 million across several funding rounds, triggered a dramatic stock drop of about 55%, as this move was interpreted as a signal of diminished confidence in Serve's ability to sustain strong growth. Additionally, Serve Robotics faces challenges in expanding its customer base, as its delivery technology remains largely unproven at scale, which could result in slower-than-anticipated adoption rates as the company ventures beyond its initial core market.