Serve Robotics Inc. Soars 13% Amid Strong Bullish Momentum and Positive Analyst Sentiment

Technical Analysis

Serve Robotics Inc. (SERV) closed at $12.95 on June 6, 2025, up 13.00%, reflecting strong bullish momentum. The price range for the day was $11.66 to $13.58, pushing well above its 50-day moving average of $7.89 and 200-day at $10.38, signaling an ongoing upward trend. The 14-day RSI stands at 61, indicating moderate bullish strength without being overbought. The MACD over three months is positive at 2.15, reinforcing the momentum. Volume surged to 10.54 million, nearly double the average of 5.40 million, suggesting heightened investor interest. The stock’s support levels hold firm at $12.81, with a stop-loss recommended near $12.46. There is currently no identified resistance level, implying room for near-term upside.

Fundamental Analysis

SERV operates in the AI robotics sector, carving a niche in autonomous delivery with its sidewalk robots, a growth area with significant market potential. The company reports a trailing twelve months EPS of -$0.93, and a negative P/E of -13.92, reflective of ongoing operational losses but consistent with early-stage tech firms investing heavily in growth. Market capitalization stands at approximately $740 million, marking it as a micro-cap with significant growth runway. The discounted cash flow (DCF) valuation is around $1.99, substantially below the current market price, suggesting the stock is priced on future growth expectations rather than current intrinsic value.

Consensus analyst targets place SERV’s price between $17 and $23, with a median at $20, implying upside potential of over 50% from current levels. Analyst sentiment is overwhelmingly bullish, with 12 buys and 4 holds, no sells, categorizing it as a consensus buy candidate. The upcoming earnings announcement on August 12, 2025, will be critical for validating growth trajectories and operational scalability.

Recent news highlights Serve Robotics as an emerging player poised for a growth inflection, leveraging its autonomous delivery experience spun out of Uber Technologies. This positions the company well within the AI and robotics revolution, which could translate into escalating revenues and market penetration in the near to mid-term.

Short-Term Outlook

For June 9, 2025, SERV is likely to maintain its upward trajectory powered by momentum from the recent breakout and high volume. Given no immediate resistance and strong support at $12.81, a continuation toward $14+ can be expected barring any market-wide sell-off or negative news. Volatility remains elevated, as suggested by the ATR of 8.68%, so intraday swings could be significant.

Over the next week, sustained buying interest fueled by positive sentiment and fundamental growth prospects could drive the stock toward the $15-$17 range, approaching the low end of analyst price targets. Monitoring volume and RSI levels will be critical to gauge overheating.

Intrinsic Value and Long-Term Investment Potential

Despite a current DCF valuation markedly below market price, SERV’s intrinsic value is expected to expand materially if the company capitalizes on its autonomous delivery technology and AI integration. The business remains pre-profit, implying longer-term risk until profitability or positive cash flow is achieved. However, the addressable market within urban logistics and robotics is substantial, with potential for exponential revenue growth and margin improvement as scale is achieved. Investors with a higher risk tolerance may view SERV as a long-term growth opportunity within the AI robotics sector.

The negative EPS and P/E ratio underscore the developmental stage, emphasizing the need for patience and scrutiny of upcoming earnings and operational milestones. Long-term valuation gains hinge on execution and broader adoption of its platform.

Overall Evaluation

SERV exhibits strong technical momentum supported by substantial fundamental growth prospects, validated by bullish analyst consensus and targeted price appreciation. Elevated trading volume and breaking through key moving averages underpin a positive near-term trend. However, the intrinsic value gap and ongoing losses suggest the stock carries developmental risk and volatility.

As a trading subject, SERV fits a short to medium-term growth profile with potential for significant capital appreciation, balanced by inherent execution risk in an emerging industry. Given the data, the stock aligns with a Buy classification based on momentum and analyst outlook, conditioned on ongoing monitoring of earnings and market sentiment.