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With close to 170% upside potential, as per the consensus projections, Serve Robotics Inc. (NASDAQ:SERV) makes it to our list as one of the 15 most promising small-cap industrial stocks under $10.

On June 2, the announcement of a new collaboration between Serve Robotics Inc. (NASDAQ:SERV) and NoScrubs represented Serve’s first-ever commercial urban delivery collaboration outside of cooked meals. Debuting this week in a few Los Angeles neighborhoods, the pilot will deliver NoScrubs laundry service orders straight to consumers’ doorsteps using Serve’s current fleet of automated sidewalk robots.

Photo by Jon Tyson on Unsplash

Serve’s last-mile delivery opportunity is expanded into a new category of recurrent local commerce through the commercial trial. NoScrubs serves in seven major metropolitan areas in the United States.

Back on May 13, with an unaltered price target of $18, Freedom Broker downgraded Serve Robotics Inc. (NASDAQ:SERV) from Buy to Hold. Despite the rating downgrade, the price target results in more than 158% upside potential at the current level.

Freedom Broker attributed the downgrade to the company’s increased dilution and execution risks. The firm informs investors that Serve’s first quarter report demonstrated operational growth but financial strain.

Serve Robotics Inc. (NASDAQ:SERV) is a maker of AI-powered low-emission robotic carriers that help in sidewalk food delivery in public places. Their self-driving delivery robots make the delivery process highly economical and efficient for consumer convenience.

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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