Novo Nordisk and Nvidia Just Partnered on AI. Is the Stock a Buy?
On March 18, Novo Nordisk (NYSE: NVO) and Nvidia (NASDAQ: NVDA) announced a major new collaboration, an artificial intelligence (AI) project that's already making waves in biopharma. In short, Nvidia is going to be building the pharma company a brand-new piece of hardware that could help it realize its ambitions of highly targeted and efficient drug discovery.
But many companies make claims about AI, and it's probable that many AI plays will be whiffs. So is Novo Nordisk stock still an appealing purchase, or is it going to strike out despite teaming up with the chip making giant?
The Novo Nordisk Foundation, a Danish group that owns a controlling stake in Novo Nordisk, is in the process of paying roughly $90 million to Nvidia so that the chipmaker can create a new supercomputing center in Denmark. Denmark's public Export and Investment Fund is contributing another $15 million, and the expectation is that the facility will be used by academic researchers as well as for commercial research and development (R&D) work. The plan is to perform pioneering biopharma R&D using AI, and perhaps eventually quantum computing.
Source Fool.com
