Why Recursion Pharmaceuticals Stock Is Soaring Today
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) had soared by 15.8% as of 12:06 p.m. ET on Friday. Did the clinical-stage biotech company report great news? Nope. Instead, the stock's gains appeared to be driven by moves made by Nvidia (NASDAQ: NVDA).
The giant chipmaker disclosed its own holdings in other publicly traded companies in a filing to the U.S. Securities and Exchange Commission on Friday. That filing revealed that during the fourth quarter, it had exited its positions in several artificial intelligence (AI) stocks, notably including Soundhound AI, and reduced its positions in others. However, Nvidia held onto all 7.7 million or so of its Recursion Pharmaceuticals shares.
Many investors seemed to view Nvidia's decision to maintain its stake in Recursion as a vote of confidence in the company. Recursion uses AI extensively as part of its drug discovery process, and built the largest supercomputer in the biopharmaceutical industry with Nvidia's help.
Source Fool.com
