Serve Robotics (NASDAQ:SERV) stock is up a staggering 187% today after Nvidia (NASDAQ:NVDA) disclosed a new investment into the company.
Nvidia purchased 62,500 shares of the robotics company for $4 each last July, per a Securities and Exchange Commission (SEC) filing released Thursday. In April, the chipmaker purchased a promissory note that was converted into more than 1 million SERV shares, priced at $2.42 a share.
In total, Nvidia has a stake of about $12 million in Serve, which is roughly 10% of the company. Not alone, Nvidia joins the likes of 7-Eleven and Uber (NYSE:UBER), who have invested almost the same amount in the company.
Serve Robotics, founded in 2017, is best known for its zero-emission robots, which perform several functions in public spaces, including food delivery. You may have seen one of its automated delivery boxes rolling down the sidewalk.
That said, Serve, based in Redwood City, California, is undoubtedly still a small company. With just 57 employees and revenue of just $1 million over the past year, Serve still has plenty of room to grow.
In fact, this week’s surge has more than doubled the company’s valuation, from under $100 million to more than $225 million.
For Nvidia, its investment in Serve is hardly a surprise. Indeed, the chipmaker frequently invests in smaller projects, including SoundHound AI (NASDAQ:SOUN), and Nano X Imaging (NASDAQ:NNOX). Frequently, Nvidia disclosures result in similarly extreme stock price movements.
SERV Stock Still In the Red Despite Major Rally
While this week’s rally should come as a major win for SERV investors, the stock is still well in the red for the year. Indeed, SERV is down about 69% this year, even as the S&P 500 is up 16% over the same period.
On the flip side, Nvidia is perhaps this year’s biggest winner. Its stock price has skyrocketed since the start of the year as one of the biggest winners of this year’s chip and artificial intelligence (AI) frenzy. NVDA stock is up 146% year-to-date, and that’s after shedding some of its value recently.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA.
