Why Recursion Pharmaceuticals Stock Is Skyrocketing This Week (Hint: Thanks, Nvidia)
Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) were skyrocketing 82% higher this week as of the market close on Thursday, according to data provided by S&P Global Market Intelligence. The huge surge came after the biotech announced on Wednesday morning that it's entering into a collaboration with Nvidia (NASDAQ: NVDA).
The giant chipmaker is investing $50 million in Recursion, and the two companies plan to use Nvidia's cloud services to speed up the development of AI foundation models for drug discovery.
Recursion immediately benefits in two key ways from its deal with Nvidia. First, the infusion of $50 million in cash improves the company's financial position. Recursion ended the first quarter of 2023 with cash and cash equivalents of a little over $473 million.
Source Fool.com
