Trading with an implied upside of 101.7% and an RSI of 39.0, Serve Robotics Inc. (NASDAQ:SERV) has emerged as a notable oversold play in the AI sector. While the broader analyst sentiment remains strong, recent analyst coverage reflects caution on the near-term outlook.
On May 13, Freedom Broker downgraded Serve Robotics Inc. (NASDAQ:SERV) to “Hold” from “Buy” while keeping its price target unchanged at $18, citing “heightened dilution and execution risk.” On the same day, Ladenburg Thalmann analyst Jeffrey Cohen raised the firm’s price target on Serve Robotics to $16.60 from $15 and kept a “Buy” rating on the shares.
That cautious analyst commentary contrasts with management’s more optimistic view.
Serve Robotics Inc. (NASDAQ:SERV) reported first-quarter 2026 revenue of $3.0 million, up 238% sequentially and 578% year-over-year. Management said revenue scaled ahead of plan, helped by growth across its offerings, while software services contributed about one-third of Q1 revenue, and just under half of total revenue became recurring.
Serve Robotics Inc. (NASDAQ:SERV) also maintained liquidity of $197.4 million as of March 31, 2026.
Operationally, the company expanded beyond sidewalk delivery after acquiring Diligent Robotics, adding healthcare robotics and taking its footprint to 44 cities across 14 states. Serve Robotics Inc. (NASDAQ:SERV) said it had approximately 2,000 robots deployed, with its focus shifting from fleet expansion to increasing revenue per robot. The combined fleet is also nearing 2 million cumulative deliveries across indoor and outdoor environments.
Looking ahead, Serve Robotics Inc. (NASDAQ:SERV) reaffirmed its 2026 guidance for approximately $26 million in full-year revenue and a non-GAAP operating expense of $160 million to $170 million.
Serve Robotics Inc. (NASDAQ:SERV) is a maker of AI-powered low-emission robotic carriers that help in sidewalk food delivery in public places. It designs, develops, and operates low-emission robots on its artificial intelligence (AI)-powered robotics mobility platform.
While we acknowledge the potential of SERV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.
