Why Oppenheimer Sees Serve Robotics (SERV) as a Physical AI Leader

Serve Robotics Inc. (NASDAQ:SERV) is one of the AI Stocks Making Waves on Wall Street. On December 18, Oppenheimer initiated coverage on the stock with an “Outperform” rating and a $20.00 price target. The firm sees SERV as a “Physical AI leader” with an edge in last-mile delivery.

Oppenheimer highlighted SERV’s leadership in navigating complex environments, particularly sidewalks, where large-scale and real-world data collection has enabled it to enable faster learning cycles than peers.

The firm believes this data depth is leading to efficient software development and optimized hardware design, creating structural cost advantages.

"We see Serve Robotics as a Physical AI pioneer targeting last-mile delivery as its first application. We believe it is leveraging its global data leadership in complex environments, notably sidewalks, into advantaged hardware design and software efficiency to drive structural cost advantages and accelerated learning cycles versus peers. We initiate coverage with an Outperform rating and a $20 PT."

Serve Robotics Inc. (NASDAQ:SERV) designs, develops, and operates low-emission robots.

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.

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Disclosure: None.