Serve Robotics (NASDAQ: SERV) stock is jumping again in Monday's trading. The company's share price was up 25.2% as of 1:45 p.m. EDT, according to data from S&P Global Market Intelligence .
Serve Robotics is rising due to excitement surrounding fireside chats featuring Nvidia CEO Jensen Huang that will be held at the SIGGRAPH 2024 conference today. Serve stock has seen explosive gains after it was revealed that Nvidia owned a stake in the company, and some investors are betting that Huang will share more details about his company's robotics strategy this afternoon.
Why is Serve Robotics stock red hot right now?
Serve is a last-mile-delivery robotics specialist that was spun off from Uber in 2021 and continues to have deals with the company's Uber Eats division and other partners, including 7-11. The company's sidewalk-delivery robots make use of artificial intelligence ( AI ) technologies for navigation capabilities and are already being used for food deliveries.
Serve Robotics received a massive profile boost after Nvidia published a regulatory filing with the Securities and Exchange Commission (SEC) on July 18 disclosing that it owned roughly 10% of the company following the recent redemption of promissory notes.
Nvidia CEO Jensen Huang is scheduled to participate in a fireside chat at the SIGRAPH 2024 conference at 4:30 p.m. EDT today. Huang is also scheduled to participate in an additional discussion with Meta Platforms CEO Mark Zuckerberg at 6 p.m. EDT. Nvidia has already indicated that it aims to be a big player in the rapidly evolving robotics space, and investors are likely hoping that Huang will divulge details about his company's robotics strategy that signal bullish catalysts for Serve Robotics.
Can Serve stock keep surging after getting the Nvidia bump?
Nvidia's ownership disclosure has helped push Serve Robotics stock up 860% over the last month. The big gains have pushed the robotics specialist's market capitalization up to roughly $700 million. Companies including SoundHound AI and Arm Holdings have also received substantial valuation boosts following news that Nvida was a stakeholder.
Getting a vote of confidence from the current leader in AI hardware has been a massive development for Serve Robotics and lifted expectations for the company's growth potential. In the first quarter, Serve posted revenue of roughly $950,000. Sales were up roughly 124% year over year in the period, but the business is still posting relatively small sales. While the company's outlook and valuation are highly speculative, Serve seemingly has huge room for expansion -- and Nvidia's backing could create significant opportunities down the line.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Uber Technologies. The Motley Fool has a disclosure policy .
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