Recursion Pharmaceuticals uses AI in drug discovery, receives investment from Nvidia, and shows potential growth.

From Yahoo Finance: 2025-06-28 12:00:00

Recursion Pharmaceuticals (RXRX) utilizes AI and robotic biology in drug discovery, with Nvidia’s $40.7 million investment driving expansion. Despite a 23.5% YTD stock drop, Wall Street anticipates growth. Recursion’s unique platform, BioHive 2 supercomputer, and acquisition of Exscientia bolster internal programs and revenue. Q1 revenue hit $15 million, but the company remains unprofitable with a reduced cash burn projection for fiscal 2025.

Morgan Stanley maintains a “Hold” rating on Recursion while lowering the price target. Analysts overall rate it a “Hold,” with an average target price of $6.67 suggesting 30% upside. Despite being lesser-known, Recursion’s tech-driven approach, diverse pipeline, strategic partnerships, and capital management make it a high-risk, high-reward investment in biotech and AI.



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