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Investors in Serve Robotics (NASDAQ: SERV) stock are no doubt rejoicing after semiconductor giant Nvidia (NASDAQ: NVDA) expressed interest in the small-cap company last week. Indeed, on Friday, SERV shares soared nearly 190% following news that Nvidia had acquired a stake in the company. Since then, the stock has continued to rise, up more than 25% in afternoon trading.
As we reported last week, NVIDIA’s purchase of 62,500 shares of SERV at the $4 level and conversion of a promissory note into over 1 million shares of the company (valued at approximately $2.42 per share) now gives NVIDIA a roughly 10% stake in the company, sparking speculation around formal acquisition talks and investors clearly looking to crowd in ahead of further investments in the future.
The robotics company, which makes zero-emission robots specialized in industries like food delivery, is an interesting business in its own right, but as Nvidia and other big players start to take an interest in its products and services, investors are beginning to take notice.
Today’s price action in SERV stock comes in tandem with increased scrutiny from analysts closely watching the deal. Let’s take a closer look at who is benefiting most from the surge in this little-known robotics company.
SERV Stock Soars on Nvidia Investment
Incidentally, this data was provided by Yahoo Finance and gives an overview of the major holders of SERV stock.
Saab Robotics’ largest institutional investor is Nvidia, which holds more than 10% of the company’s shares. Raymond James Financial Services Advisors is second on the list, holding more than 91,000 shares, valued at just under $1 million. Raymond James & Associates holds another 13,096 shares for clients in other funds, bringing its holdings to more than $116,000. Valley National Advisors holds 2,000 shares, valued at just under $20,000. Other insider transactions, including stock-based compensation grants from the company’s chief financial officer and director conversions, give insiders roughly 34.2% of the company’s total shares.
On the date of publication, Chris McDonald 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 author in accordance with InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
His passion for investing led Chris McDonald to earn an MBA in Finance and hold a number of management positions in Corporate Finance and Venture Capital over the past 15 years. His previous experience working as a financial analyst and passion for finding undervalued growth opportunities has led to his conservative, long-term investment view.
