Jim Cramer Says Serve Robotics Inc. (SERV) Is ‘A Very Risky Stock’

We recently compiled a list of the Jim Cramer Shed Light on These 10 Stocks. In this article, we are going to take a look at where Serve Robotics Inc. (NASDAQ:SERV) stands against the other stocks Jim Cramer recently discussed.

Jim Cramer, the host of Mad Money, pointed out that ongoing uncertainty around tariff policies is likely to continue influencing market movements. He highlighted that stocks saw a decline on Wednesday after President Donald Trump raised the issue of tariffs during a cabinet meeting.

“We were flying high… when President Trump started talking in a televised cabinet meeting and it didn’t take long for him to be, to talk about his obsession: tariffs.”

READ ALSO: 7 Stocks on Jim Cramer’s Radar and Jim Cramer Commented on 12 Stocks Linked to Data Centers

Trump has long been determined to address trade imbalances, often pointing out that many countries have trade surpluses with the United States, a situation he intends to change. Cramer noted that this tariff talk has become such a recurring theme that it is beginning to wear on investors.

He expressed concern that the constant mention of tariffs, especially in the presence of a camera, is increasingly shaping the market environment. As a citizen, Cramer said he has no issue with tariffs if they are used to protect against unfair trade practices.

“But as someone who cares about the stock market, I can tell you that we’re entering a new, more mercurial world where we have to start worrying about the president’s public appearances because we don’t know which country, which continent, which ally he is going to attack next.”

Cramer also emphasized that the unpredictability of tariff discussions has overshadowed other major economic concerns. For example, the bond market, which had dominated financial conversations for years, has taken a back seat due to the overwhelming focus on tariffs. He pointed to a significant drop in long-term interest rates, noting that the 10-year treasury bond, which had seemed on track to approach 5%, has now fallen to 4.25%. He commented that the change in the bond market is striking considering that the U.S. government has continued to hold large bond auctions. He added:

“Long-term interest rates have plummeted. The 10-year treasury, which not that long goes seemed to be headed toward 5%, is now slouching toward 4%, finishing at 4.25% today. That’s insane, especially when you remember that we have kept, keep having gigantic bond auctions… A couple months ago, if we got this kind of action, the bond market stocks would’ve exploded higher, probably making new all-time high after all-time high after all-time high.”

Our Methodology

For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 26. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A robotics technician in a clean room programming a CNC series product.

Serve Robotics Inc. (NASDAQ:SERV)

Number of Hedge Fund Holders: 10

Talking about Serve Robotics Inc. (NASDAQ:SERV), a caller expressed that they are ready to take some risks as they are in their 20s. Here’s what Cramer said in response:

“Okay, that is a very risky stock. I would normally advise people to either do Tesla, I know that’s become a very risky stock, or NVIDIA, which just reported a nice quarter. But because of your age and how you feel about it, I’m gonna greenlight you but only for someone your age.”

Serve Robotics Inc. (NASDAQ:SERV) designs, develops, and operates eco-friendly robots that provide food delivery services in public areas across the United States, with an emphasis on autonomous delivery robots. Even when in January Cramer was asked about the company, he suggested NVDA instead.

“Yeah. Okay, now this is one of these, look, we are going to revert to what, if you want robotics, here’s what you’re going to get from me. You’re gonna get Nvidia because they’re the king of robots. That’s it. Nobody else.”

Overall SERV ranks 7th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of SERV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SERV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.