Serve Robotics Inc. (NASDAQ: SERV) is making headlines with its extraordinary premarket performance. After a remarkable 187% gain during Friday’s regular trading session, the stock continued its upward trajectory in premarket hours on Monday, climbing an additional 40%. This impressive rise saw the stock price leap from $2.63 to an astonishing $10.55.
High Trading Volume Highlights Growing Interest
The volume of shares traded in the premarket is equally notable. Typically, Serve Robotics trades fewer than 5 million shares daily. However, during the premarket session on Monday, approximately 270 million shares changed hands—a staggering increase that suggests heightened investor interest. This volume surge indicates that Monday’s regular trading session could see even greater activity, further amplifying the stock’s volatility.
Nvidia’s Investment in Serve Fuels Stock Surge
The spike in Serve Robotics’ stock price is closely tied to recent news of Nvidia’s investment in the company. Nvidia, known for its significant presence in the tech industry, disclosed on Thursday that it purchased 62,500 shares of Serve Robotics at $4 each last July, as per a Securities and Exchange Commission (SEC) filing. Additionally, in April, Nvidia converted a promissory note into over 1 million SERV shares, priced at $2.42 per share. Overall, Nvidia now holds about 10% of Serve Robotics, amounting to a stake valued at roughly $12 million.
Nvidia’s involvement is complemented by backing from other major players. Serve Robotics, which was spun off from Uber in 2021, has secured significant investments from both Uber and 7-Eleven. The company develops advanced, AI-powered delivery robots aimed at making deliveries more sustainable and cost-effective. Serve Robotics has completed thousands of deliveries for partners like Uber Eats and 7-Eleven and has multi-year contracts in place, including a major agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across various U.S. markets.
Conclusion
SERV’s remarkable stock surge reflects both its growing market presence and the confidence of major investors like Nvidia. As the premarket session unfolds with unprecedented trading volume, all eyes will be on how the stock performs in the regular trading hours and whether it can sustain its momentum.
