We came across a bullish thesis on Serve Robotics Inc. (SERV) on wallstreetbets Subreddit page by nooglide. In this article, we will summarize the bulls’ thesis on SERV. Serve Robotics Inc. (SERV)’s share was trading at $13.36 as of Dec 19th.
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SERV is an autonomous AI robotics company poised for significant growth, with a market cap of $560 million and a proven team that has successfully completed an alpha test and is now expanding its operations. The company’s autonomous delivery robots, which are more cost-effective than using cars, address issues like street congestion and parking. With plans to deploy 2,000 units by 2026, SERV is positioning itself as a leader in the robotics space, particularly in autonomous delivery and restaurant automation. The company is already integrated with major players like Uber and 7-11, and its strategic partnerships continue to strengthen its market position.
SERV’s standout achievements include securing investment from Nvidia, which brings valuable tech support, and establishing a partnership with Wing (Alphabet/Google Ventures) in October, allowing SERV to handle package delivery. Additionally, in November, the company acquired Vebu, a full-stack restaurant automation provider, broadening its offerings to include automation solutions for major brands like Starbucks and McDonald’s. These partnerships and acquisitions reflect SERV’s expanding capabilities and potential for market dominance.
SERV is targeting a massive total addressable market in autonomous delivery, with the potential to capture significant daily delivery fees in the U.S. alone. The company aims to generate $60-80 million next year from its 2,000 robots, and even if it falls short, the future growth prospects remain strong. With a focus on design, functionality, and scalability, SERV is well-positioned to lead in its sector, benefiting from ongoing institutional interest and an increasing volume of buying activity since late July. As costs decrease with economies of scale, SERV’s technology and market presence will likely continue to grow, paving the way for future business ventures and expansions into new markets.
Serve Robotics Inc. (SERV) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held SERV at the end of the third quarter which was 3 in the previous quarter. While we acknowledge the risk and potential of SERV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SERV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.