Serve Robotics Up 13%: NVIDIA Loves It, Analysts See 67% More Upside

Core Insights - Serve Robotics (SERV) shares increased by 13% following a strong Q4 2025 revenue report, with sales reaching $882,000, surpassing estimates and indicating significant growth potential for the company [1] - NVIDIA endorsed Serve Robotics' platform at CES, enhancing its credibility and attracting analyst attention, with an average one-year price target of $18.80 from eight analysts [1] Financial Performance - Q4 2025 revenue was $882,000, exceeding the consensus estimate of $736,960, reflecting a year-over-year growth of 401.59% [1] - Full-year FY2025 revenue totaled $2.651 million, also above the consensus estimate of $2.506 million [1] - The company reported an EPS loss of $0.34 for Q4, attributed to scaling operations from 100 to 2,000 robots across 20 U.S. cities [1] Growth Drivers - Serve Robotics raised its 2026 revenue guidance to approximately $26 million, indicating a target of roughly 10x growth over FY2025 [1] - The acquisition of Diligent Robotics for $29 million adds the Moxi hospital assistant robot to Serve's offerings, creating a recurring revenue stream in healthcare [1] - Partnerships with Uber Eats and DoorDash cover 80% of the U.S. food delivery market, enhancing revenue potential [1] Operational Expansion - Daily active robots increased from 57 in Q4 2024 to 547 in Q4 2025, with merchant partners growing from approximately 400 to over 4,500 [1] - The introduction of the Gen3 robot offers a 65% reduction in unit costs compared to previous models, supporting a credible sub-$1 delivery cost target [1] Market Outlook - Analysts are optimistic about Serve Robotics, with a consensus Buy rating and significant upside potential noted [1] - The upcoming earnings call will provide insights into the integration of Diligent Robotics and the pace of city expansions, which are critical for achieving the 2026 revenue target [1]