Nvidia (NVDA 0.94%) recently became the world's first $4 trillion company. Demand continues to outstrip supply for its data center chips, which are the best in the world for developing artificial intelligence (AI) models. With all the added revenue pouring in, Nvidia has been looking for ways to put it to use. One way is by investing in smaller AI companies, equipping them with the financial resources and technical expertise they need to commercialize their products. Between 2022 and 2024, the chip giant in ...

Core Viewpoint - Ark Invest predicts a significant revenue opportunity of $860 billion in the logistics industry by 2030, driven by autonomous delivery technologies [2]. Group 1: Industry Opportunity - The $860 billion forecast is segmented into three categories: $160 billion for food delivery, $280 billion for parcel delivery, and $420 billion for larger freight delivered by autonomous trucks [5]. - Serve Robotics is focusing on transforming last-mile logistics with its autonomous food delivery robots and has a contract with Uber to deploy 2,000 robots this year [3][5]. Group 2: Company Overview - Serve Robotics is a small-cap company valued at $600 million, currently in the scale-up phase with a focus on autonomous food delivery [3][9]. - The company’s Gen3 robots utilize Nvidia's Jetson Orin platform, achieving level 4 autonomy for safe navigation on sidewalks [6]. Group 3: Financial Performance - Serve's revenue for the first quarter was $440,465, a 53% year-over-year decline, primarily due to a one-off licensing payment from the previous year [9]. - Despite the decline, revenue increased by 150% from the previous quarter, indicating potential growth momentum [10]. - Analysts project Serve's revenue to reach $6.8 million in 2025, a 275% increase from 2024, and surge to $50.6 million in 2026, a 648% increase [10][11]. Group 4: Financial Challenges - Serve reported a net loss of $13.2 million in the first quarter of 2025, suggesting that scaling the autonomous robotics business is costly [12]. - The company has $197 million in cash, allowing it to sustain losses for a couple more years, but it needs to achieve profitability soon to avoid potential capital raises that could dilute existing investors [13]. Group 5: Valuation Considerations - Serve stock has a high price-to-sales (P/S) ratio of 368, making it significantly more expensive than competitors like Nvidia [14]. - When considering expected future revenue, the forward P/S ratio is 89.6 for 2025 and 12 for 2026, which may be seen as more reasonable for a rapidly growing company [16].