Serve Robotics Stock Down 55% Since Nvidia's Surprise Exit: Buy the Dip or Run for the Hills?

Nvidia's investment in Serve Robotics has lost 55% of its value since February 2025, when Nvidia sold its entire stake in the start-up. Serve is working to deploy 2,000 autonomous food delivery robots as part of a major deal with Uber Eats, which could drive stratospheric growth in its revenue. Serve believes a shift to autonomous robots and drones could create a $450 billion opportunity by 2030.

Nvidia, the world's first $4 trillion company, sold its entire stake in Serve Robotics at the end of 2024, marking a significant decline in Serve's stock value since February 2025. Serve Robotics, a developer of autonomous last-mile delivery robots, has seen its stock drop by 55% since Nvidia's exit [1].

Serve Robotics, which has deployed its robots in major U.S. cities including Los Angeles, Miami, Dallas, and Atlanta, is currently working on a major deployment of 2,000 robots for Uber Eats. This partnership is expected to drive substantial revenue growth for Serve. The company believes that a shift to autonomous robots and drones could create a $450 billion opportunity by 2030 [1].

Despite the potential for growth, Serve Robotics is currently facing significant financial challenges. The company lost $33.7 million during the first two quarters of 2025 and is on track to exceed its $39.2 million loss from 2024. Serve has around $183 million in cash on hand, which is expected to last until the end of 2026. The company's high valuation, with a price-to-sales (P/S) ratio of 317, may deter some investors [1].

Serve's recent acquisition of Vayu Robotics, an AI-based urban robot navigation company, aims to enhance its AI-driven autonomous delivery capabilities. This acquisition is expected to improve safety, reliability, and speed, potentially reducing operational costs. The deal has a value of $240 million and includes an earnout based on achieving certain performance milestones [2].

While Serve Robotics has the potential for significant growth, investors should consider the company's financial situation and high valuation before making any investment decisions. Nvidia's exit may indicate that the chip giant found Serve's valuation to be too high, despite its potential for revenue growth.

References:
[1] https://finance.yahoo.com/news/serve-robotics-stock-down-55-081700020.html
[2] https://finance.yahoo.com/news/serve-robotics-acquires-vayu-enhance-111816733.html