Small-Cap Biotech Absci Draws Heavy Attention On $20M AMD Investment Pledge, Retail's Bullish Despite Pre-Market Dip

Absci Corp. shares gained over 4% in the previous session, drawing the most retail interest among biotech stocks on Stocktwits after the company announced a strategic partnership with AMD, which includes a $20 million investment pledge from the chipmaker. 

This investment, structured as a private investment in public equity (PIPE), reportedly marks AMD’s entry into life sciences, leveraging its AI chips for drug discovery.

The collaboration aims to integrate AMD’s high-performance computing capabilities with Absci’s AI-powered de novo antibody design models. 

The partnership will be showcased at the upcoming 43rd Annual J.P. Morgan Healthcare Conference on Jan. 15, Absci said.

Retail engagement on Stocktwits skyrocketed, with message volume surging by 36,900% on Wednesday. 

Sentiment on the platform for Absi was 'bullish' heading into Friday even as profit-taking set in, as the company revealed another partnership. 

ABSI sentiment and message volume Jan 10 premarket as of 7:50 am ET | source: Stocktwits

Absci and Owkin announced they have teamed up to harness their advanced AI platforms to speed up the discovery and design of new medicines. The partnership will focus on creating treatments for cancer and other conditions like immune disorders and inflammation. 

Adding to Wednesday’s optimism, Cathie Wood’s ARK Investment purchased 608,900 Absci shares, through its ARK Genomic Revolution ETF (ARKG), valued at over $1.9 million as of the last close. 

AI-driven drug discovery is a space being increasingly targeted by major tech players. Last year, Nvidia invested $50 million in Recursion Pharmaceuticals for similar initiatives.

KeyBanc lowered its price target for Absci to $5 from $6 on Wednesday but maintained an ‘Overweight’ rating, citing the broader rebound in healthcare technology stocks following Donald Trump’s election. 

The brokerage said it sees opportunities in companies with strong balance sheets but warned of risks for those with limited profitability. 

Absci reported $127.1 million in cash and equivalents as of September 30, 2024, down from $145.2 million the previous quarter.

Shares of the company remain down over 22% over the past 12 months.

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