Serve Robotics Stock Skyrockets as NVIDIA Takes $4 Million Stake

Serve Robotics skyrockets as Nvidia takes stake

Serve Robotics (NASDAQ:SERV) shares soared more than 65% in early trading on Friday after semiconductor giant Nvidia (NASDAQ:NVDA) disclosed a stake in the robotics company. According to the filing, Nvidia purchased 1.05M shares on April 22 at a price of $2.42, resulting in an acquisition cost of slightly more than $3.7M. The purchase was the result of a 6% Convertible Promissory Note held by Nvidia, according to the filing after Serve Robotics went public. Nvidia shares were down 1.3% in early morning trading. More on Nvidia and Serve Robotics Nvidia Is Still Historically Overvalued With Negative Catalysts Developing Here Is Why Nvidia Still Has More Upside Nvidia: Prepare For A Correction In H2 2025 Or H1 2026 Broadcom held discussions with OpenAI about producing AI chip: report Nvidia CEO sells another $30.6M in shares as part of option plan

Serve Robotics surges as NVIDIA discloses large stake By Investing.com

Serve Robotics (SERV) surged 62% in pre-open trading Friday after AI giant NVIDIA (NVDA) disclosed a 10% stake in the company. A 13G filing Thursday afternoon revealed that NVIDIA owned 3,727,033 shares of SERV. While meaningful, the stake is not new. The stake was owned as of July 31, 2023, when the company merged into a SPAC. Patricia Acquisition Corp., a special purpose acquisition company (SPAC), has successfully merged with Serve Robotics Inc., a company specializing in robotics technology. The merger was finalized on July 31, 2023, resulting in Patricia Acquisition Corp. rebranding itself as Serve Robotics Inc. As part of the business arrangement, Serve Acquisition Corp., a subsidiary of Patricia Acquisition Corp., merged into Serve Robotics Inc., with the latter emerging as the surviving entity. This strategic combination is part of a broader trend of SPACs facilitating public listings for burgeoning tech companies. In conjunction with the merger, NVIDIA increased its investment in the newly formed Serve Robotics Inc. Initially, NVIDIA Corporation (NASDAQ:NVDA) owned 2,676,904 shares of common stock in the company, which included an additional 62,500 shares acquired during a concurrent private placement by Serve Robotics Inc. Further solidifying its stake, on January 2, 2024, NVIDIA Corporation received a convertible promissory note from Serve Robotics Inc., which was then converted into 1,050,129 shares of common stock on April 22, 2024. This conversion has bolstered NVIDIA's position as a significant shareholder in Serve Robotics Inc.

Serve Robotics stock soars 171% after Nvidia takes $4 million stake in the company | Business Insider India

Shares of Serve Robotics soared as much as 171% on Friday after Nvidia disclosed a stake in the company. According to a Form 4 filing made with the SEC on Thursday, Nvidia purchased 1.05 million shares of Serve at a price of $2.42 per share in April, representing a total investment worth just over $3.7 million. The stock purchase was pursuant to a 6.0% convertible debt note that Nvidia held on the company. The bond was converted to stock following Serve Robotics public debut in April. Serve Robotics was founded in 2017 and develops and operates self-driving vehicles focused on last-mile delivery. The automated delivery boxes travel via sidewalks and often deliver food orders for delivery platforms like Uber Eats. "Why deliver 2 pound burritos in 2 ton cars?" Serve asks on its website. Serve Robotics is small, with a market valuation of about $225 million on Friday. Before the surge on Friday, it was worth just under $100 million. The company generated revenue of just $1 million over the past 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, who invested $11.5 million in Serve Robotics. The company launched its operations in Los Angeles as the 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 disclosed investments in early-stage companies focused on AI and robotics. In February, Nvidia disclosed relatively small investments in SoundHound AI and Nano X Imaging, resulting in similarly big stock price moves.

A Big Nvidia Stake Sends Another AI Stock Soaring

Shares of Serve Robotics (SERV) surged on Friday after Nvidia (NVDA) reported a 10% stake in the delivery technology company, making it the latest upstart to get a boost from the AI giant's halo effect. Nvidia in a regulatory filing late Thursday said it owned 3.7 million shares of Serve, a stake valued at about $9.8 million based on Thursday's closing price. Shares of Soundhound AI (SOUN), a voice AI and speech recognition company, jumped in mid-February when Nvidia disclosed a stake that at the time was valued at less than $4 million. Soundhound stock has since gained more than 125%. Serve is a last-mile delivery company whose semi-autonomous delivery robots can be seen on the sidewalks of San Francisco and Los Angeles. Serve, once a subsidiary of food delivery service Postmates, was acquired by Uber (UBER) in 2020 and subsequently spun off in 2021. Serve shares were recently up about 130%. Nvidia's were down more than 1%.