On the first day of trading in 2026, shares of Serve Robotics (SERV +11.37%) are off to a roaring start. Due to a firm's positive outlook on autonomous delivery stocks, investors are eager to click the buy button on shares of Serve to kick off the new year, illustrating how artificial intelligence (AI) stocks continue to shine brightly on investors' radars.
As of 11:11 a.m. ET, shares of Serve are up 9.7%.
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Serve Robotics has the potential to serve up big returns for investors in 2026
Characterizing Serve stock as "one of the best investments in physical AI," Northland analyst Michael Latimore recognizes that there are a "myriad [of] 2026 catalysts" that can contribute to the stock performing strongly in the coming year, according to thefly.com.
NASDAQ: SERV
Key Data Points
Latimore has an "outperform" rating and a $26 price target on Serve stock. Based on the stock's closing price of $10.38 on the last day of trading in 2025, Latimore's price target implies an upside of more than 150%.
Serve is developing technology to enable the autonomous delivery of packages to customers. Last month, Serve announced that it had attained its 2025 goal of deploying more than 2,000 delivery robots.
Is it too late to pick up Serve stock right now?
While Latimore's price target is ambitious, it would be unsurprising if Serve stock does, in fact, soar, considering the strong appetite that investors have for all sorts of AI-related stocks right now. Potential investors, however, should weigh the company's financials more heavily than an analyst's price target. Serve remains unprofitable and unable to produce organic cash flow, so the stock should be considered only for those with high risk tolerances.
