Serve Robotics, a startup that develops AI-powered delivery robots, has seen its stock soar 256% at one point in Friday’s after-hours trading. The rally was prompted by the reveal of chipmaker Nvidia’s stake in the company.
In a regulatory filing, Nvidia revealed a 10% ownership in Serve Robotics. It was a result of a promissory note conversion that Nvidia purchased back in April, giving it more than one million shares for $2.43 per share price.
Once the news got out, the shares of Serve Robotics saw a major uptick, mimicking the effect that Nvidia had with investments in other smaller companies like SoundHound AI and Nano X Imaging.
After closing at $2.63 per share on Thursday, Serve Robotics’ stock opened at $4.28 on Friday. It continued its surge throughout the day, closing at $7.55 per share. The rally spilled over to aftermarket trading, as the company’s shares reached $9.45 per share at one point, representing a 256% gain compared to their Thursday’s close price. The stock later settled at $8.21.
Serve Robotics was founded in 2017. The company’s goal is to make delivery sustainable and economical by developing advanced low-emission delivery robots. Besides Nvidia, Serve Robotics backers include Uber and 7-Eleven.