Serve Robotics (NASDAQ: SERV) stock is currently soaring, thanks to a recent disclosure that shows Nvidia owns 10% of the company. But who is Serve Robotics? Is it a smart buy? Let’s dig into what to expect from this small but mighty organization.

Who Is Serve Robotics?

Serve Robotics spun off from Uber in 2021. Originally part of Postmates, which Uber acquired in 2020, this autonomous sidewalk delivery company went public in April of this year. Serve Robotics makes small, AI-powered robots to cover last-mile deliveries in big cities. The company currently focuses on restaurant food, but plans to expand to groceries, pharmacy orders, and even cannabis in the near future.

Moving Forward

Serve Robotics currently has just 100 robots, but it signed a contract with Uber Eats in 2022 to deploy up to 2,000 robots in cities around the country. It’s also conducting tests with pizza chains, coffee shops, and even Walmart. Automotive supplier Magna International has an exclusive contract to build its robots.

The future looks bright for Serve Robotics, but investors should be wary. The company is currently burning cash at an impressive rate, at $4.1 million in the first quarter of this year. This is pretty standard for early-stage tech companies, but it does carry some risks. It’s too early to say whether Serve Robotics will prove to be an industry disruptor or simply a fad.

If you’re a long-term, patient investor who is comfortable with a lot of risk, you may want to give this one a try. Otherwise, there are safer ways to buy into the AI-powered robotics trend, such as investing in a company like Nvidia. It’s likely that Nvidia and other well-known AI companies will continue to be major players in the robotics market, without all of the associated risk.

Neither Lisa Fritscher nor Stocks.News have positions in this company