SERV Stock Forecast & Price Target

Serve Robotics Inc. is positioned for growth in the autonomous last-mile delivery market, evidenced by a projected revenue run rate of $60 million to $80 million from its deployment of 2,000 Gen3 robotic units. The company's strategic focus on establishing long-term partnerships with key industry players enhances its market presence and offers additional revenue upside as the demand for cost-effective autonomous solutions rises among restaurants. Furthermore, Serve Robotics's commitment to scalability and rapid deployment in urban areas with higher transaction values creates a compelling business opportunity, highlighting its leadership in the evolving delivery landscape.

Serve Robotics Inc. has experienced a substantial decline in its stock, falling 32% year-to-date, primarily due to the market's negative reaction to Nvidia's decision to divest its 10% stake in the company. This significant sell-off has raised concerns among investors, especially following Nvidia's prior investments of approximately $12 million in multiple funding rounds, which had previously indicated confidence in Serve’s growth potential. Additionally, the company faces challenges related to the unproven scalability of its technology, which may result in slower-than-expected adoption rates as it attempts to penetrate markets beyond its initial early adopters.