Shares of Serve Robotics Inc. (SERV) plummeted more than 9% in pre-market trading on Tuesday, following the disclosure that tech giant Nvidia Corp. has dissolved its stake in the robotics and artificial intelligence company.
According to regulatory filings, Nvidia no longer holds any shares in Serve Robotics, divesting its entire position in the company. This move by the chipmaker to offload its stake in SERV appears to have spooked investors, leading to the significant pre-market sell-off.
While the exact reasons behind Nvidia's decision are not clear, the development has raised concerns among traders regarding Serve Robotics' future prospects and its ability to deliver on its growth plans. Nvidia's divestment from the company could be interpreted as a lack of confidence in SERV's long-term potential, adding to the bearish sentiment surrounding the stock.
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