Serve Robotics Inc. (NASDAQ: SERV) Surged 5.97% On Bullish Oppenheimer Note

Serve Robotics Inc. (NASDAQ: SERV) surged 5.97% in pre-market trading on December 19, 2025, driven by a bullish research note from Oppenheimer analyst Colin Rusch, who initiated coverage with an "outperform" rating and a $20 price target—nearly double the stock’s closing price. Rusch highlighted the company’s leadership in physical AI and its scalable last-mile delivery technology, which operates 2,000 autonomous robots across major U.S. cities.

The analyst emphasized Serve’s potential to leverage urban data and AI-driven navigation for cost-efficient expansions into groceries, parcels, and return logistics.

CEO Ali Kashani has underscored the environmental and economic benefits of the robots, which operate with 99.8% efficiency and zero emissions. Partnerships with Uber Eats and DoorDash have accelerated deployment, with plans for nationwide growth by 2026.

While the stock’s rally reflects optimism about long-term automation trends, investors should note Serve’s current financial challenges, including thin revenue and significant losses. Rusch’s call positions the stock as a high-risk, high-reward play, betting on the company’s ability to capitalize on the $179.96B hyper-automation market by 2032. However, analysts caution that execution risks and valuation concerns remain critical factors for future performance.

Industry observers are monitoring Serve’s ability to scale its delivery operations profitably and maintain its technological edge in a competitive landscape. The company’s roadmap includes expanding its robot fleet, integrating more advanced AI for real-time decision-making, and enhancing partnerships with major e-commerce and delivery platforms. Analysts also note the importance of regulatory support and public acceptance in the adoption of autonomous delivery technologies.

Despite these challenges, the long-term trajectory of automation and AI-driven logistics is expected to favor early innovators like Serve Robotics. Investors are advised to balance the company’s transformative potential with its operational and financial hurdles when evaluating its investment profile. With a growing emphasis on sustainability and efficiency in urban environments, the autonomous delivery market is poised for continued innovation and expansion over the next decade.