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The Robotics service has rolled out autonomous delivery robots, designed to take over human drivers’ roles on platforms like Uber Eats.
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Saab is launching 2,000 of its latest Gen3 robots under a partnership with Uber, which could potentially lead to significant revenue growth.
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While stock trading is currently undervalued, it may be a wise purchase, especially considering the company’s broad market potential.
Nvidia (NASDAQ: NVDA) started 2023 with a $360 billion valuation but has gained almost $4 trillion to its market cap since then. This growth is largely attributed to its AI chips. Recently, CEO Jensen Huang revealed plans to invest $100 billion into OpenAI, the creator of ChatGPT.
From 2022 to 2024, Nvidia invested $12 million in Serve Robotics (NASDAQ: SERVE), a company focused on autonomous last-mile logistics. Unfortunately, Nvidia sold its entire stake by the end of 2024. Despite SERVE stocks being mostly in the red this year, the company anticipates its addressable market could balloon to $450 billion by 2030.
Is this a strategic buying moment for investors?
Serve Robotics thinks that the current last-mile logistics system is rather inefficient—dependent on humans and cars for small deliveries from restaurants and retailers. The company advocates for autonomous robots and drones, believing this shift could unlock $450 billion in opportunities by 2030.
Its latest Gen3 robots are rated for level 4 autonomy, enabling them to navigate sidewalks without human oversight. This makes them ideal for local deliveries. Powered by Nvidia’s Jetson Orin platform, these robots are fully equipped in terms of hardware and software.
Since launching its first pilot program in 2022, Serve has completed over 100,000 deliveries for 2,500 restaurants. The company believes that achieving scale could bring down delivery costs to about $1, which, well, sounds a lot cheaper than human-driven options.
Currently, Serve is deploying 2,000 Gen3 robots through Uber Technologies (NYSE: UBER) on the Uber Eats platform. It’s a promising start, with about 400 robots operational as of mid-2025 and plans for more this quarter.
The robots are now active in cities like Los Angeles, Miami, Dallas, and Atlanta, with Chicago in the works. Yet, Serve is not quite turning a profit yet—just $642,000 came in during the second quarter, which is a bit unusual for a publicly traded company valued near $800 million.
However, Serve’s growth potential could lead to notable increases in revenue down the line; analysts project $3.6 million in total revenue this year, marking a 99% increase from 2024. They also believe that the 2,000 Gen3 robots could generate $80 million in revenue.
But here’s a drawback: Saab is currently facing substantial losses as it operates towards commercialization. In the first half of 2025, a GAAP net loss of $39.2 million was recorded, with $33.7 million spent in the process.
At the end of Q2, Saab had $183 million in cash, affording them a few years of runway. However, without a path to profitability, they might have to look for additional funds, risking dilution for existing shareholders, and that’s something investors should keep in mind.
Another factor to consider is Serve’s valuation, which is currently inflated with a staggering price-to-sales ratio of 429, making it one of the priciest stocks in the AI space. In fact, Serve could cost investors 16 times more than Nvidia, which raises eyebrows about its long-term viability.
That said, if one believes in the company’s management guidance, the stock might actually be undervalued. If an $80 million annual revenue mark becomes a reality, the forward P/S ratio could drop to a more attractive 10. This would make it appealing, especially if this growth occurs within the next few years.
Further, if the addressable market does expand to $450 billion by 2030, the context of SERVE’s annual revenue compared to that opportunity could look even more favorable. In other words, there’s lots of room for growth, making the stock seemingly cheaper in the long run.
Still, it’s important to note that management predictions aren’t foolproof. Investors buying in today are essentially taking a leap of faith, so it might be prudent to hold off until next year to gauge how effectively the Gen3 robots are deployed. The success of those efforts will ultimately reveal whether the forecasts hold merit.
So, keep all of this in mind if you’re considering an investment in Serve Robotics.
Analysts from Motley Fool Stock Advisor have put together a list of what they think are solid stocks to buy right now, and oddly, Serve Robotics is not included among them. The 10 stocks they selected are anticipated to show significant returns in the coming years.
In summary, if you reflect on stocks worth your time, consider this list which was created back in December 2004. If you had put $1,000 in Netflix then, you’d be looking at $649,280 today. And for Nvidia, an initial $1,000 investment would now be at $1,084,802!
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