Welcome back to Market on Close. I'm Marley Caden here in our Chicago headquarters. Shares of Serve Robotics are on the move higher today, up about 7 and a half% right now and have gained 12% in September so far.The move higher comes after the company's integrated Voices technology into its autonomy platform offering. Joining me now to discuss what this means for the company and more is Ali Kashani, the CEO and co-founder of Serve Robotics. Ali, thanks for being with us today.you know, first could you just ...

Group 1 - Serve Robotics (NASDAQ: SERV) shares have increased for two consecutive days, driven by general enthusiasm for emerging technology stocks, particularly in robotics [1][2][7] - The stock rose 9.3% today after a 6.8% gain yesterday, while Tesla's stock also saw a 5.4% increase, indicating a correlation between the two [3] - Tesla CEO Elon Musk's comments about the future value of Tesla's Optimus autonomous robot have sparked investor interest in robotics, benefiting Serve Robotics despite no direct relationship with Tesla [5][6] Group 2 - Serve Robotics reported revenue of $642,000 in the latest quarter, a 37% increase year-over-year, but its net loss more than doubled to $20.9 million [6] - With a market capitalization of less than $1 billion, there is potential for Serve Robotics to rise further if investor enthusiasm continues, although the fundamental case for the stock remains weak [6][7]

Core Insights - Serve Robotics Inc. has acquired the assets of Phantom Auto Inc. and its subsidiary Voysys AB for approximately $5.75 million, enhancing its technology stack for autonomous delivery robots [1] - The acquisition aims to improve connection quality and latency, which will reduce data infrastructure costs and enhance operational metrics [3] Company Overview - Serve Robotics is a leading autonomous sidewalk delivery company, spun off from Uber in 2021, and has completed tens of thousands of deliveries for partners like Uber Eats and 7-Eleven [11] - Voysys, founded in 2014, specializes in ultra-low latency video streaming and teleoperation technology, achieving a glass-to-glass latency as low as 50 milliseconds [2][8] Strategic Importance - The integration of Voysys technology is expected to be critical for safe operations in dense urban environments, reinforcing Serve's leadership in autonomous delivery [3][6] - Voysys will continue to operate as a standalone entity while expanding its existing contracts with global clients, thereby strengthening the ecosystem for autonomous vehicles and robotics [4][10] Future Growth - The acquisition aligns with Serve's strategy to invest in mission-critical capabilities, positioning the company at the forefront of the autonomous delivery and embodied AI industries [6] - Serve plans to monetize Voysys' proprietary technologies through its Software & Data Services platform, focusing on generating recurring revenues [5]

Group 1 - Analyst Dan Ives from Wedbush Securities initiated coverage on Serve Robotics with a price target of $15, representing a 33% premium to the current stock price, leading to a 15.7% increase in shares [2] - Serve Robotics is focusing on last-mile delivery using AI-driven robots, which is seen as a cost-effective and efficient solution for residential deliveries, supported by a contract with Uber Eats [3] - The company has launched its delivery service in major cities including Los Angeles, Miami, Dallas, and Atlanta, with plans to expand to Chicago and aims to have 2,000 robots in service by the end of the year [4] Group 2 - Sales projections for Serve Robotics indicate a surge to $35 million in 2026 and $71 million in 2027, driven by the rollout of their services [5] - The competitive landscape poses challenges for Serve Robotics, as it lacks a dominant market position compared to competitors like Tesla, which may impact future margin growth [5]

Group 1 - The article suggests that there are opportunities in undervalued stocks that are mispriced by the market as of the end of August [1] - It encourages readers to consider joining a platform for insights on these investment opportunities [1] Group 2 - The article does not provide specific company or industry analysis, focusing instead on general investment advice [2][3][4]

Core Viewpoint - Wedbush Securities has initiated a "Outperform" rating for Serve Robotics (SERV.US) with a target price of $15, highlighting the company's innovative autonomous delivery platform that leverages the growing trend of AI-driven last-mile delivery vehicles [1] Company Summary - Serve Robotics is establishing a pioneering autonomous delivery platform that allows its robot fleet to safely navigate urban streets and sidewalks, providing reliable, contactless service without requiring technical knowledge from users [1] - The company collaborates closely with major industry players and merchant platforms to customize deployment solutions and optimize workflows [1] - Serve Robotics is building multiple revenue streams, including delivery, software services, and advertising, to achieve stable revenue growth while capitalizing on the increasing demand for automation in the commercial sector [1] Future Outlook - The company plans to expand its autonomous robot fleet to 2,000 units by the end of 2025 and establish new partnerships while operating in other cities with favorable regulatory environments [1] - Serve Robotics is expected to emerge as a key driver of urban commercial development as cities and businesses seek to modernize their delivery infrastructure with the company's scalable, data-driven approach [1] - Key growth factors include the expansion of robot numbers across multiple cities by the end of 2025 and the establishment of strategic partnerships with various restaurants and businesses across the United States [1]

Core Viewpoint - Serve Robotics (SERV.US) stock price increased over 15%, reaching $11.94, following a "buy" rating from Wedbush analyst Daniel Ives with a target price of $15, highlighting the company's unique advantage in the growing demand for automated last-mile delivery vehicles [1] Company Summary - Serve Robotics' stock performance shows a significant rise, indicating positive market sentiment and investor interest [1] - The company is positioned favorably within the automated delivery vehicle sector, which is experiencing increasing demand [1] Industry Summary - The last-mile delivery vehicle market is expanding, creating opportunities for companies like Serve Robotics to capitalize on this trend [1]

Core Viewpoint - The recent launch of NVIDIA's Jetson Thor is seen as a significant advancement in robotics, enhancing AI computing power and enabling higher capabilities in humanoid robots [1] Group 1: Stock Performance - Several US robotics stocks experienced notable gains, with Serve Robotics rising over 15%, Richtech Robotics increasing nearly 14%, and iRobot up more than 3% [1] Group 2: Technological Advancements - NVIDIA's Jetson Thor features a Blackwell GPU and 128 GB of memory, achieving 2070 FP4 TFLOPS of AI computing power, which is 7.5 times that of the previous Jetson Orin model [1] - This technological leap allows robots to process large amounts of sensory data and large language models (LLM) in real-time, enhancing their ability to see, think, and act [1]

Company Overview - Serve Robotics is focused on developing autonomous last-mile logistics solutions, particularly for food delivery, and has recently partnered with Uber Eats to deploy 2,000 delivery robots [4][9] - The company has made over 100,000 deliveries since early 2022, achieving a 99.8% completion rate, indicating high reliability [8] Financial Performance - Serve generated $642,000 in total revenue during Q2 2025, a 37% increase year-over-year, but this is relatively small given its market capitalization of over $500 million [10] - Wall Street estimates suggest Serve's total revenue for 2025 could reach approximately $3.6 million, a 99% increase from 2024, with potential growth to $80 million by 2026 as the rollout of Gen3 robots completes [11] - The company reported a loss of $33.7 million in the first half of 2025, indicating significant financial strain as it seeks to commercialize its business [12] Investment Considerations - Serve's current valuation is high, trading at a price-to-sales (P/S) ratio of 317, which raises concerns about its investment attractiveness compared to Nvidia's P/S ratio of 30 [14][15] - Nvidia sold its entire stake in Serve, which may indicate concerns about the company's overvaluation and financial situation [3][17] - Serve has approximately $183 million in cash, which may only sustain operations until the end of 2026, raising the possibility of future capital raises that could dilute existing shareholders [13] Market Opportunity - The shift to autonomous delivery solutions is projected to create a $450 billion market opportunity by 2030, as current last-mile logistics are deemed inefficient [6] - Serve's Gen3 robots utilize Nvidia's Jetson Orin platform, enabling Level 4 autonomy for safe deliveries without human intervention [7]

Core Insights - Serve Robotics Inc. has acquired Vayu Robotics, enhancing its position in the autonomous delivery market and leveraging Vayu's AI navigation technology [1][5][11] - The acquisition aims to combine Serve's real-world data with Vayu's AI models to improve navigation capabilities and accelerate deployment in new markets [2][7] Company Overview - Serve Robotics develops AI-powered, low-emission sidewalk delivery robots and has completed tens of thousands of deliveries for partners like Uber Eats and 7-Eleven [12] - Vayu Robotics specializes in urban robot navigation using large-scale AI models and aims to democratize robotics for widespread adoption [11] Strategic Implications - The merger is expected to enhance Serve's autonomy training capabilities and expand its operational environments, potentially increasing revenue and customer growth [7][8] - The integration of Vayu's technology is anticipated to improve safety, reliability, and speed, thereby reducing operational costs [7] Financial Details - The acquisition includes an initial consideration of 1,696,069 shares of Serve's common stock, with a potential future earnout of 560,000 shares based on performance milestones [8][9] - Additional warrants for 4,000,000 shares at an exercise price of $10.36 per share were issued to Khosla Ventures, a key investor in Vayu [8] Leadership and Expertise - Vayu's team, including founders with extensive experience in AI and robotics, will join Serve, bringing valuable insights and expertise [3][4] - Vinod Khosla, a prominent Silicon Valley technologist and Vayu's lead investor, will join Serve's Advisory Board to support its growth [4][6]