Serve Robotics stock surges 241% after Nvidia takes $4M stake in the company

• Serve Robotics shares soared 241% after Nvidia disclosed a stake in the company.

• Nvidia’s $3.7 million investment in Serve is a convertible debt security that was converted in April.

• Serve Robotics focuses on autonomous delivery vehicles for last-mile deliveries.

Actions of Robotics at the service climbed as much as 241% on Friday after Nvidia disclosed a stake in the company.

According to a form 4 In an agreement reached with the SEC on Thursday, Nvidia purchased 1.05 million Serve shares at a price of $2.42 per share in April, representing a total investment of just over $3.7 million.

The stock purchase was made under a 6.0% convertible bond held by Nvidia on the company. The bond was converted into stock following Serve Robotics’ IPO in April.

Serve Robotics was founded in 2017 and develops and operates autonomous vehicles focused on last-mile delivery.

Automated delivery boxes drive along sidewalks and often deliver food orders for delivery platforms like Uber Eats.

“Why deliver 2-pound burritos in 2-ton railcars?” Serve asks on its website.

Serve Robotics is a small company, with a market valuation of about $275 million on Friday. Before Friday’s surge, it was worth just under $100 million. The company generated just $1 million in revenue 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, which invested $11.5 million in Serve Robotics.

The company has launched operations in Los Angeles as its first test city. As part of its “next phase” of expansion, it plans further deployments in San Diego, Dallas and Vancouver.

This isn’t the first time Nvidia has revealed investments in early-stage companies focused on AI and robotics.

In February, Nvidia unveiled relatively small investments in SoundHound AI and Nano X Imaging, which led to equally significant stock market movements.

Read the original article on Business Insider