Shares of Serve Robotics jumped 14.4% on the day after Nvidia Chief Executive Jensen Huang singled out the company’s delivery sidewalk robots during his CES keynote on physical AI. Huang declared “I love Serve Robotics” and identified physical AI—robotics that interact with the real world—as the next frontier, making Serve the only delivery robot maker he mentioned. The remark drove significant investor interest in the young developer of rolling sidewalk robots that partner with Uber Eats and Shake Shack in densely populated urban neighborhoods.

Earlier this month, Northland Securities elevated Serve Robotics to its top pick for 2026, setting a $26 per-share target that implies 66% upside relative to current levels, and calling it one of the best investments in physical AI. This upgrade followed three additional buy or outperform ratings in December. Sectorwide, recent acquisitions by Grab (Infermove) and Mobileye (Mentee Robotics) have enhanced sentiment around last-mile robotics, further benefiting Serve’s positioning as a pure-play delivery specialist.

Serve Robotics remains a development-stage business with a $1.0 billion market capitalization and deeply negative gross margins reflecting ongoing R&D and infrastructure investment. Analysts forecast revenue growth from $2.5 million in 2025 to $25 million in 2026, but note the stock trades at roughly 40 times next year’s projected sales. Investors are weighing near-term operational losses against the potential for the company’s technology to expand beyond food delivery into broader logistics applications.