The age of robots is neigh, and the market is currently sifting through the available players to sniff out those with an intrinsic advantage. Enter Serve Robotics, whose partnership with NVIDIA and Uber demands a prominent place in the last-mile urban delivery space.
For the benefit of those who might not be aware, Serve Robotics is currently pioneering 4-wheeled robots that leverage AI to navigate dense cityscape. These third-gen robots support advanced sensing tech and copious onboard computing resources, thanks to NVIDIA's Jetson Orin module.
Of course, NVIDIA had precipitated a significant rally in Serve Robotics' stock in 2024 when it took a 10 percent stake in the company. Interestingly, NVIDIA divested the entirety of its stake in Q4 2024.
Do note that Serve Robotics is currently partnered with Uber Eats to offer autonomous food deliveries in US cities such as Los Angeles.
In the second quarter of 2025, the company deployed 120 delivery robots, bringing its total fleet strength to 400. Critically, Serve Robotics intends to expand its robot fleet size by 400 percent to 2,000 units by the end of 2025.
It is this aggressive growth spurt that is now attracting Wall Street's attention. For instance, Wedbush has just initiated its coverage on the stock with a $15 stock price target, implying a 35 percent upside from the current price levels.
Similarly, earlier in August, Cantor Fitzgerald reiterated its overweight rating on Serve Robotics shares, replete with a $17 stock price target.
Serve Robotics announced $642,000 in revenue in Q2 2025, which corresponds to an annual growth rate of 46 percent. The company's strong liquidity position of $183 million (as of the end of Q2) has played an important role in aiding its hyper-aggressive expansion efforts.
The company is also tapping into multiple revenue streams. For instance, it is selling advertising space on its delivery robots, allowing advertisers to gain visibility as these delivery robots become an increasingly common sight on urban walkways.
Serve Robotics has a low-cost CapEx model, where it outsources the actual manufacturing of its iconic robots to Magna.
Cantor Fitzgerald expects the company to price its delivery services at a more competitive sub-$8 price point, allowing a break-even period of less than 2 years for each robot.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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