We recently published a list of the Top 10 AI Stocks Buzzing on Latest News. In this article, we are going to take a look at where Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) stands against the other AI stocks that are buzzing on latest news.
Investors are continuing to assess the impact of new LLMs in the AI industry. X. Eyeé, CEO of AI consulting firm Malo Santo and senior policy advisor at the Goldman School of Public Policy at UC Berkeley, said in a recent program on CNBC that the DeepSeek breakthrough in China has changed the dynamics of the AI race. She believes AI development is no longer limited to the companies with the “largest pockets.”
“I mean, the world has long looked to the United States to be the leader in artificial intelligence, but these recent model releases from China have demonstrated its ability to leapfrog and catch up with us tech giants and achieve groundbreaking results without the luxury of advanced hardware, which is ultimately challenging everything that we thought was necessary for innovation in the AI space. See, what DeepSeek represents is that AI innovation isn’t necessarily driven by the companies with the largest pockets or the fanciest hardware, but that collaborative development approaches can actually end up providing market-leading technologies.”
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 AI stocks making the biggest moves these days. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Number of Hedge Fund Investors: 16
Cathie Wood in a latest program on CNBC talked about Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) and explained why she’s bullish on the stock because of AI catalysts:
“Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has, just in one year thanks to AI and I think 1500 GPUs—so very few relative to what we’re seeing elsewhere—driven the average number of hypotheses per researcher for new drugs up tenfold in just one year, from 20 to 200 per researcher. We think that research and discovery is going to be impacted incredibly, and we also think that phase one and phase two drugs, which get very little love in the marketplace these days, especially phase one and anything preclinical, now that AI is speeding everything up, we’re going to see more value placed on those because the number of failures is going to drop and the time to market is going to accelerate.”
Overall, RXRX ranks 10th on our list of the top AI stocks buzzing on latest news. While we acknowledge the potential of RXRX as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RXRX 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.
