As Trump looks to boost robotics, this lesser-known stock is a strong buy

Robotics stocks are returning to the spotlight after reports that President Donald Trump’s administration is preparing a major initiative to make automation and advanced machinery a key part of its domestic manufacturing plan.

In late November, Trump signed an executive order launching Mission Genesis, an initiative aimed at accelerating scientific discoveries, and market talk has already turned to the possibility of a similar policy model for robotics and service automation.

This shift was evident midweek, when Serve Robotics (SERV) surged after reports that the Trump administration was treating robotics as a strategically important industry and may move toward an executive order that would directly support robotic manufacturing and automation.

While SERV remains a relatively small stock tied to autonomous last-mile delivery, the potential for more favorable policies and increased capital in the robotics industry raises a crucial question for investors: Could Serve Robotics be an attractive way to tap into the new robotics trend of the Trump era? Let’s look at this in more detail.

Serve Robotics is a game focused on autonomous curbside delivery, operating fleets of last-mile robots for partners like Uber Eats (UBER) and DoorDash (DASH) and getting paid for both deliveries and the technology that powers them.

The stock price is starting to reflect this pattern. Over the past 52 weeks, SERV is up approximately 51%.

In the third quarter of 2025, revenue was approximately $687,000, up approximately 209% from the same quarter of 2024, driven by shipment volume that increased 66% quarter-over-quarter and approximately 300% year-over-year. This growth remains modest, with annual sales close to $2 million. Serve Robotics is also still unprofitable, with a recent loss per share of $0.54.

The funding picture, however, is solid. SERV ended the quarter with approximately $210 million in cash, then raised an additional $100 million through a registered direct offering, leaving the company in a strong position to handle near-term losses as it scales.

Serve’s growth story begins where its robots actually work. The company has overcome small tests and now operates in major U.S. cities, with its latest expansion bringing autonomous deliveries to the Chicago area through Uber Eats. Chicago is Serve’s first Midwest stop and adds 14 neighborhoods, giving hundreds of thousands of households access to contactless deliveries from more than 100 restaurants. This adds to previous launches in Los Angeles, Miami, Dallas-Fort Worth and Atlanta.

Serve also pushed hard on the technology front with the acquisition of Vayu Robotics. Vayu focuses on navigating urban robots using large AI base models, and by combining this with Serve’s autonomy stack and a large dataset of real-world sidewalks, the goal is to produce smarter, safer navigation that can adapt to more places.

Demand builds alongside this. A new multi-year partnership with DoorDash connects Serve to one of the world’s largest local commerce platforms. In Los Angeles, DoorDash customers can already have their orders delivered by Serve robots, and the deal aims to expand robot deliveries across the United States over time. This creates a larger pool of potential orders, fits into DoorDash’s plan to use drivers, drones and robots together, and builds on Serve’s record of more than 100,000 deliveries made to more than 2,500 restaurants.

For 2025, Serve is targeting revenue of more than $2.5 million, and analysts expect the company to lose $1.52 per share for the full year.

Seven analysts cover the stock and give it a consensus rating of “strong buy” with an average target of $18.50, implying an upside of about 56.8% if the story plays out as they expect.

Serve Robotics seems like a classic way to build on Trump’s robotics push without chasing the already crowded megacaps. You have a tiny but rapidly growing revenue base, real-world deployments with Uber Eats and DoorDash, a clear “Physical AI” angle through Vayu, and a “Strong Buy” consensus rating. This doesn’t remove execution or dilution risk, but it tips the scales.

If the Trump administration follows a pro-robotics policy, SERV stock is more likely to rise over time than drift sideways from here.

As of the date of publication, Ebube Jones did not have (directly or indirectly) any position in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com