Why Recursion Pharmaceuticals Stock Zoomed Higher on Thursday
There's nothing like a buy-in from a famous company to juice the price of a smaller stock. That was the dynamic that pushed Recursion Pharmaceuticals' (NASDAQ: RXRX) share price nearly 14% higher on Thursday, as a regulatory filing revealed the involvement of such an investor. That pop was far higher than the 0.6% gain of the S&P 500 index in the session.
The investing party is the Wall Street darling chipmaker of the moment, Nvidia (NASDAQ: NVDA). It disclosed that as of Dec. 31, it held investments in three companies developing artificial intelligence (AI) capacities for their businesses. Among them was Recursion, which is developing AI models for drug discovery.
Although Nvidia's Recursion stake is not the largest of the trio in terms of dollar amount, it is substantial. It was valued at $76 million. That is relatively modest, as Recursion's current market cap is nearly $2.7 billion.
Source Fool.com
