Following the news, Serve Robotics shares experienced a massive surge in trading volume. It achieved a strong rally in just five days.
In April, Nvidia also converted a promissory note it had purchased into 1.05 million SER shares.
Serve Robotics Inc. (NASDAQ) saw its share price skyrocket 140% on Friday after the announcement that artificial intelligence giant Nvidia Corp. (NASDAQ) had acquired a substantial stake in the company, which specializes in low-emission curbside delivery robots.
Nvidia spent more than $3.7 million to buy just over 1 million shares of Serve Robotics, according to a securities filing Friday. This translates into an average price of $2.42 per share.Nvidia’s initial investment in Serve Robotics was made in July 2023, and in April of this year, the company converted a promissory note into 1.05 million SERV shares.
So, this Monday, Serve Robotics shares climb another impressive 53%with the meteoric rise reaching 400% in the last five days.
Serve Robotics: the market reaction
Following the news, Serve Robotics shares experienced a massive surge in trading volume. At the time of writing, over 120 million shares had been exchanged, significantly higher than the average daily trading volume of around half a million shares.
Nvidia now owns about 10% of Serve Robotics. Other notable investors include Postmates, a subsidiary of Uber Technologies Inc., which is one of Serve Robotics’ largest shareholders and a strategic partner.
Serve Robotics went public as “OTCQB” in March and was listed on Nasdaq in April. Launched in 2017, Serve markets zero-emission robots that have achieved Level 4 autonomy. According to the company, its robots are “capable of routinely operating without human intervention and can rely on their onboard capabilities to ensure safe operation.”
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What you need to know about Serve Robotics In May, Serve Robotics revealed that it had launched a partnership with Uber Technologies (NYSE). Under the agreement, some Uber Eats customers in Los Angeles can have their food delivered by Serve robots.
In April, Nvidia also converted a promissory note it had purchased into 1.05 million shares of SERV. At current prices, the chipmaker’s stake is worth about $12 million.
Serve generated just $207,000 in revenue in 2023, even though its trailing 12-month sales totaled $1.11 million. In the first quarter of 2024, Serve reported $900,000 in revenue.
Source: Ambito
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