Nvidia-Backed Recursion Pharma Hits 3-Week High, Sparks Retail Buzz Amid Broader AI Hype

The AI chipmaker’s $50 million investment in Recursion, unveiled in 2023 to support AI-driven drug discovery, has been a key driver of investor interest.

Shares of Recursion Pharmaceuticals Inc climbed 5.6% on Wednesday morning, reaching a three-week high as trading volumes hit 1.4 times the daily average.

The stock is on track for its third consecutive session of gains, which would mark its best streak in over two weeks.

While no specific catalyst directly triggered the surge, the buzz likely stems from broader developments in artificial intelligence. 

President Donald Trump's announcement of "Stargate," a multibillion-dollar AI joint venture led by OpenAI, on Wednesday drove a rally in high-profile AI stocks, including Nvidia.

The connection to Recursion? The company is a clinical-stage biotech innovator leveraging automation, artificial intelligence, machine learning, and in vivo validation to discover new medicines. 

Nvidia's $50 million investment in Recursion, unveiled in 2023 to support AI-driven drug discovery, has been a key driver of investor interest.

That remained the case on Stocktwits on Wednesday, where sentiment for Recursion turned "extremely bullish" as message volume surged, placing the ticker among the platform's top 10 trending symbols. 

The company's AI-driven drug discovery platform and diverse pipeline include six programs (including oncology drugs), some of which are in Phase 2 trials.

Despite a significant retail following, Recursion's stock has faced challenges. According to Koyfin data, short interest stands at 18.7%. 

Over the past year, the company's Stocktwits followers have tripled, and message volume has jumped more than 500%, even as the stock has lost more than 32% in the same period.

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