Recursion Pharmaceuticals’ (RXRX) AI-driven cancer treatment is showing promising results in early studies

We recently compiled a list of the 10 AI News Investors Probably Missed. In this article, we’ll take a look at where Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) stands compared to the other AI stocks.

As artificial intelligence continues to transform the industry, experts are increasingly focused on how its integration will impact investment strategies. The growth of AI presents investors with a unique opportunity to diversify their portfolios, not only by targeting leading technology companies, but also by considering the broader ecosystem, including infrastructure and cybersecurity.

In a CNBC interview, BlackRock’s Jay Jacobs and ETF expert Dave Nadig discussed the future of ETFs in 2025, particularly focusing on the accelerating phase of AI infrastructure. Jacobs emphasized that AI adoption is still in its early stages and megacap tech companies are making significant investments in data centers, chips and model training. He stressed the importance of looking beyond the tech giants, as other sectors such as semiconductors, data centers and software companies could also benefit from AI. Jacobs also noted that investing in cybersecurity will become increasingly important as the value of data increases.

Nadig added that the impact of AI will also extend to infrastructure sectors, particularly the energy sector, and stressed the importance of retail companies integrating AI into consumer devices. Finally, both experts acknowledged the growing importance of physical infrastructure such as electricity, data centers and materials such as copper in supporting the rapid spread of AI technologies.

READ ALSO: 11 trending AI stocks on the latest news and reviews And 10 AI stocks are taking Wall Street by storm.

On December 10, Bloomberg reported that OpenAI CFO Sarah Friar discussed the potential of charging business users thousands of dollars per month for their AI software to better reflect its value. She explained that AI tools can function like a highly trained assistant for users such as lawyers or academics, making a higher subscription fee reasonable. Currently, OpenAI offers a $20 monthly plan for consumers and a $200 option for access to more powerful models.

The company also charges companies per user. Going forward, Friar suggested the possibility of a value-based pricing model for AI products based on the benefits companies gain from them, such as automating tasks and reducing the need for additional employees. This approach could help offset the high costs of developing AI systems.

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For this article, we selected AI stocks by reviewing news articles, stock analysis and press releases. We’ve listed the stocks in ascending order of hedge fund sentiment, drawn from Insider Monkey’s database of 900 hedge funds.

Why do we care about the stocks hedge funds invest in? The reason is simple: Our research shows that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points (Further details can be found here).

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Number of hedge fund owners: 16

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biotech company that uses AI and technology to advance drug discovery. The company also recently announced its LOWE Drug Discovery Software, a language model designed to streamline drug discovery by conducting experiments using AI on large data sets.

Recursion (NASDAQ:RXRX) reported initial data on its AI-developed CDK7 inhibitor REC-617 in a Phase 1/2 trial for advanced solid tumors. REC-617 was developed using AI-powered precision methods and reached clinical testing within 12 months of candidate identification. It showed promising pharmacokinetics and pharmacodynamics with rapid absorption, controlled targeting, and favorable safety. The study observed a partial response in one heavily pretreated patient and stable disease in others. These results highlight the potential of REC-617 to combat resistance mechanisms in cancer therapy. Recursion plans additional dose escalation and combination trials in 2025, emphasizing its AI-driven approach to drug development.

Total RXRX takes 8th place on our list of AI news that investors probably missed. While we recognize RXRX’s potential as an investment, we believe AI stocks are more promising for generating higher returns, and within a shorter time frame. If you’re looking for an AI stock that has more promise than RXRX but trades at less than 5x earnings, check out our report on it cheapest AI stock.

READ MORE: The 8 Best Wide Moat Stocks to Buy Now And The 30 most important AI stocks according to BlackRock.

Disclosure: None. This article was originally published at Insider monkey.