Nvidia Is Investing in Biotech Like Wild. Here's What It Means for the Stock.
Nvidia (NASDAQ: NVDA) is on a shopping spree in the biotech industry. While it has no intention of developing medicines or pharmaceutical technologies for the laboratory, its strategy clearly calls for getting some exposure to the sector, and when it makes a move, others tend to follow.
But how could making investments in an area so far outside of its traditional wheelhouse end up supporting shareholder value in the future rather than destroying it? Let's dive in and examine why it's staking out its biotech claims.
Nvidia isn't cutting deals and making investments in just any old biotech. Its quarries are biotechs using artificial intelligence (AI) as part of their drug discovery and development process. In July, the chipmaker made a $50 million equity investment in Recursion Pharmaceuticals, a biotech dedicated to developing medicines more efficiently using its AI platform.
Source Fool.com
