Recursion Pharmaceuticals, Inc.

Key Points
The company isn't the only developer of a drug for FAP, a rare genetic disease.
A rival just reported that its own FAP treatment is advancing to late-stage testing.
Clinical-stage biotech Recursion Pharmaceuticals' (NASDAQ: RXRX) stock took it on the chin in the first trading day of the week. Monday saw investors back out of the company's shares, leaving them with an almost 3% decline at market close. The benchmark S&P 500 (SNPINDEX: ^GSPC) did notably better, ticking up slightly on the day.
A rival reports a major step forward
This was largely due to news from a rival clincal-stage biotech. Late on Friday, U.K.-based Biodexa announced it had launched a phase 3 clinical trial of its eRapa, an investigational drug that targets familial adenomatous polyposis (FAP). This is a rare genetic disease which, when left untreated, typically leads to colorectal cancer.
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Biodexa has been granted Fast Track status for investigating the drug from the U.S. Food and Drug Administration (FDA). This followed a phase 2 clinical trial in which the drug met its primary endpoints.
The advancement of eRapa puts it ahead of Recursion's REC-4881, which is also aimed at treating FAP. The company completed a phase 1b/2 study of the drug earlier this year. Like Biodexa's drug, REC-4881 did well in that stage of testing.
The best should win
As any seasoned biotech investor would attest, it's the final results and approval process of a drug that ultimately count. Given that, it's hardly encouraging that Biodexa has taken a big step forward ahead of Recursion in the development of its FAP medication. The latter company's investors will be hoping that REC-4881 ultimately proves to be the more efficacious drug for the disorder.
Should you invest $1,000 in Recursion Pharmaceuticals right now?
Before you buy stock in Recursion Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 28, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Recursion Pharmaceuticals Stock Got Mashed on Monday

Key Points
Artificial intelligence-powered drug development isn't a mere premise anymore. Recursion Pharmaceuticals has made it a reality.
The next era of e-commerce favors platforms like Shopify's, which allows brands to connect with consumers outside of massive digital shopping malls.
U.S. drivers may not be big fans of electric vehicles, but that's not the case everywhere else.
Are Americans saving enough money to fund a comfortable retirement? Probably not. As the Motley Fool's own research indicates, as of 2022 the median retirement savings for U.S. households is a mere $87,000. That means half of the country has saved up more, while the other half has saved less. Even being in the upper half of the crowd, however, isn't necessarily enough.
Committing more of your income to the effort is still only half the battle though. You'll also need to get more out of your money while you're growing your nest egg. This means achieving bigger gains without taking on significantly more risk.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here's a closer look at three growth stocks you could buy and hold for decades as a means of supercharging your portfolio's growth. While each of these tickers brings some added risk and volatility to the table that will require regular monitoring, their long-term upside potential is arguably worth the work.
Recursion Pharmaceuticals
While artificial intelligence (AI) still has of room for improvement, the writing is on the wall -- the technology will be tackling complex problems that individuals and institutions just can't. This includes designing and testing pharmaceuticals.
Well, the future is here. Recursion Pharmaceuticals (NASDAQ: RXRX) has built an AI-powered platform capable of virtually testing a drug rather than requiring a full-blown clinical trial of an idea. Leveraging 36 petabytes (36 million gigabytes) of digital biological and chemical data, its so-called Recursion OS can accomplish what would normally take years and millions of dollars in a matter of days at a fraction of the cost.
And it's no mere theory. The technology is not only functioning -- it's commercialized. A handful of pharma companies including Roche and Sanofi are using Recursion OS to tackle some of their own developmental work, while Recursion is working on some drugs of its own. All of these drug candidates will still need to go through the actual clinical trial process to satisfy regulatory agencies like the FDA. Recursion's software facilitates focus though, by virtue of weeding out less promising drug prospects so more resources can be devoted to more promising ones. That's huge.
It's still relatively early for Recursion, and for that matter, the AI-assisted drug-development industry itself. Recursion Pharmaceuticals remains in the red, and will likely remain there for at least a few more years. This arguably makes Recursion the riskiest of the three stocks being put under the microscope here.
Just understand the potential reward is commensurate with the risk. Recursion Pharmaceuticals is nearing a revenue and profit turning point in front of what Straits Research believes will be average annualized growth of nearly 32% for the artificial intelligence drug-development industry through 2030. This tailwind alone should be enough to push Recursion to profitability. That makes this stock's prolonged and persistent weakness since peaking in 2021 is a fantastic buying opportunity.
Shopify
Amazon (NASDAQ: AMZN) is in no immediate danger of being dethroned as the king of North America's e-commerce scene. But it's no longer able to simply bully the rest of the industry. Competitors are successfully pushing back... just not in the way you might have expected. Rather than one or two rival names making inroads, brands and merchants are taking matters into their own hands by setting up their own online stores as a means of working all the way around Amazon's domination.
And they've largely got Shopify (NASDAQ: SHOP) to thank for the option.
In simplest terms, Shopify helps companies establish their own in-house e-commerce presence. From websites to payment-processing to inventory-management to marketing, Shopify can do it all, making it easy for businesses of all sizes to stay focused on more important matters (like running that business). Although the company no longer discloses how many clients are using its technology, it does divulge the scope of its business. Last year, Shopify's solutions facilitated the sale of $292.3 billion worth of goods and services, up 24% year over year to extend a long-established growth streak. Shopify collected $8.9 billion worth of revenue for itself in the process, turning a little over $1 billion of it into net income.
This growth still only scratches the surface of the opportunity though. Market research outfit eMarketer reports that only a little more than one-fifth of the world's retail spending is currently done online. The rest is still taking place in brick-and-mortar stores.
While certainly some of these sales will never move online, much of it can. Brand-owned and merchant-managed online stores are positioned to capture more than their fair share of whatever growth awaits the e-commerce industry, however, as these players increasingly see the value in establishing their own direct relationships with customers. In this vein, analysts expect Shopify to produce top-line growth in the ballpark of 20% in each of the three years ahead.
Nio
Finally, add Nio (NYSE: NIO) to your list of stocks to buy and hold for decades if you want a shot at building a bigger retirement nest egg.
It wouldn't be surprising if you'd never heard of it. Although it's finding a bit of traction in Europe, the Chinese maker of electric vehicles predominantly serves China itself. It delivered 72,056 electrified cars during the second quarter of this year, up nearly 26% from the year-ago comparison, underscoring production growth that's been in place for some time now.
Think the electric vehicle (EV) market is hitting a wall due to disinterest? Not so fast. That's largely an American phenomenon. Data gathered by CleanTechnica indicates sales of electric vehicles in China soared 25% to 1.1 million units last month, accounting for more than half of the country's entire automobile sales.
That's still just the beginning though. The International Energy Agency expected EVs to account for 80% of China's total car sales by 2030, thanks to supportive policies that encourage the alternative to combustion-powered vehicles. It's making inroads in Europe as well, for the same reason. And, while there's little incentive for the company to make a push into the United States' anemic EV market right now, if and when domestic interest perks up, Nio has maintained tentative plans for that possibility.
It could be a while before Nio works its way out of the red and into the black -- it simply needs more scale. This could make the stock a little less than completely comfortable to own in the interim.
It's making clear progress on the production as well as the profitability front though, and will almost certainly get there sooner or later, and likely sooner. Given how inevitable this outcome now seems, the market's apt to reward the progress en route to fiscal viability.
Should you invest $1,000 in Shopify right now?
Before you buy stock in Shopify, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*
Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Shopify. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Median Retirement Savings for American Households Is $87,000. Here Are 3 Incredible Stocks to Buy Now and Hold for Decades.

Investors in Recursion Pharmaceuticals Inc (Symbol: RXRX) saw new options become available today, for the September 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the RXRX options chain for the new September 5th contracts and identified the following call contract of particular interest.
The call contract at the $7.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of RXRX stock at the current price level of $6.41/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $7.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.00% if the stock gets called away at the September 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if RXRX shares really soar, which is why looking at the trailing twelve month trading history for Recursion Pharmaceuticals Inc, as well as studying the business fundamentals becomes important. Below is a chart showing RXRX's trailing twelve month trading history, with the $7.00 strike highlighted in red:
Considering the fact that the $7.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 40%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.80% boost of extra return to the investor, or 66.21% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 209%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $6.41) to be 93%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RXRX September 5th Options Begin Trading

In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA) and other artificial intelligence stocks with which Nvidia has either a partnership or owns shares. To learn more, check out the short video, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of July 21, 2025. The video was published on July 21, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,813!*
Now, it’s worth noting Stock Advisor’s total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Jose Najarro has positions in CoreWeave, Nvidia, and Recursion Pharmaceuticals. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 AI Stocks Partnered With Nvidia With Massive Growth Opportunities

The NASDAQ 100 Pre-Market Indicator is down -5.34 to 23,174.72. The total Pre-Market volume is currently 168,215,532 shares traded.
The following are the most active stocks for the pre-market session:
Opendoor Technologies Inc (OPEN) is +0.62 at $3.83, with 67,855,698 shares traded., following a 52-week high recorded in prior regular session.
Direxion Daily TSLA Bull 2X Shares (TSLL) is +0.04 at $12.37, with 9,587,774 shares traded. This represents a 96.66% increase from its 52 Week Low.
Replimune Group, Inc. (REPL) is -9.335 at $2.99, with 8,496,137 shares traded. As reported in the last short interest update the days to cover for REPL is 8.600519; this calculation is based on the average trading volume of the stock.
ProShares UltraPro Short QQQ (SQQQ) is +0.01 at $18.43, with 7,500,171 shares traded., following a 52-week high recorded in prior regular session.
Oscar Health, Inc. (OSCR) is -0.46 at $13.16, with 7,026,851 shares traded. OSCR's current last sale is 119.64% of the target price of $11.
NVIDIA Corporation (NVDA) is -0.8 at $170.58, with 3,421,770 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
QuantumScape Corporation (QS) is -1.14 at $11.38, with 3,046,730 shares traded.QS is scheduled to provide an earnings report on 7/23/2025, for the fiscal quarter ending Jun2025. The consensus earnings per share forecast is -0.2 per share, which represents a -25 percent increase over the EPS one Year Ago
Recursion Pharmaceuticals, Inc. (RXRX) is +0.15 at $6.55, with 2,463,780 shares traded. RXRX's current last sale is 100.77% of the target price of $6.5.
BigBear.ai, Inc. (BBAI) is +0.1 at $7.50, with 1,883,400 shares traded. BBAI's current last sale is 150% of the target price of $5.
Joby Aviation, Inc. (JOBY) is -0.97 at $15.87, with 1,660,957 shares traded. JOBY's current last sale is 198.38% of the target price of $8.
NIO Inc. (NIO) is +0.1 at $4.62, with 1,481,611 shares traded. NIO's current last sale is 115.5% of the target price of $4.
Chevron Corporation (CVX) is +0.02 at $149.70, with 1,392,663 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2025. The consensus EPS forecast is $1.67. CVX's current last sale is 91% of the target price of $164.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jul 22, 2025 : OPEN, TSLL, REPL, SQQQ, OSCR, NVDA, QS, RXRX, BBAI, JOBY, NIO, CVX

Key Points
Nvidia and its CEO, Jensen Huang, invest firm capital in artificial intelligence stocks.
Given Nvidia's leadership in AI, it makes sense, considering the company's expertise and knowledge.
Most of Nvidia's investments are in partners, major customers, or companies that can grow the sector.
Nvidia (NASDAQ: NVDA) is widely considered the ultimate pick-and-shovel play in the artificial intelligence (AI) space. The company's graphics processing units (GPUs) have become the standard for training the large language models (LLMs) that make AI possible. And so far, Nvidia seems to hold somewhat of a monopoly, considering its sky-high margins.
With its market leadership, Nvidia and its CEO, Jensen Huang, have also used the company's capital to invest in other AI-related stocks that they either partner with or that may help grow and expand the sector. As of April 27, 2025 (the end of fiscal 2026's first quarter), Nvidia owned six stocks. Here's the best of the bunch.
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What Nvidia owns
Nvidia's total portfolio of six stocks amounted to roughly $1.14 billion. Here are the six holdings:
CoreWeave (NASDAQ: CRWV): CoreWeave went public at the end of March, and while the initial public offering (IPO) disappointed, the stock has been a moonshot ever since and is now up 286% (as of July 8) in just a few short months. As the AI sector picks up steam, many companies will want to build AI applications and offer AI solutions. But building all the infrastructure could be a heavy lift, and this is where CoreWeave comes in.
The company offers software and cloud services that companies can use to develop and manage LLMs. CoreWeave's clients already include AI giants like Microsoft and Nvidia. Nvidia's position totaled nearly $897 million at the end of the first quarter and was by far the company's largest stock holding.
Arm Holdings (NASDAQ: ARM): Arm is another company that has done well since its IPO in 2023 and is now up 146%, with a market cap of close to $158 billion. Arm builds intellectual property solutions needed for computer processing units (CPUs), GPUs, and neural processing units (NPUs). Nvidia uses Arm's intellectual property (IP) in many of its products and actually tried to buy the company in 2020. The acquisition ultimately fell apart, but Nvidia participated in the company's IPO. Nvidia's $117.6 million stake is the second-largest in its portfolio.
Applied Digital Corp (NASDAQ: APLD): Applied Digital offers products and services similar to the companies mentioned above. The company builds digital infrastructure solutions and offers cloud services, specifically aimed at high-performance computing (HPC) and AI solutions.
The company's three operating segments include crypto data center hosting, cloud services, and data center hosting for HPC. Applied Digital is also launching GPU clusters in data centers, which customers can essentially rent to build AI applications on. Nvidia is one of Applied Digital's major suppliers. Nvidia held a $43.4 million position in the company.
Recursion Pharmaceuticals (NASDAQ: RXRX): Recursion Pharmaceuticals is taking AI into the biotech and pharmaceutical space. The platform has built out one of the most extensive wet labs in the world, where robots and sensors help conduct millions of experiments each week. The company is also building a huge data set that machine learning algorithms can parse to find patterns that enable more effective drug discovery.
Recursion has collaborated with Nvidia and uses Nvidia-powered solutions. Nvidia's stake in the company amounted to about $40.7 million at the end of the first quarter.
Nebius Group (NASDAQ: NBIS): Nebius is similar to CoreWeave in that it's building cloud solutions, specifically for AI. Customers can essentially rent the company's infrastructure to build and run AI applications, rather than building their own.
According to Kevin Xu of Interconnected Capital, CoreWeave focuses on deploying the latest GPU clusters as fast as possible and signing customers up for multi-year leases. Nebius builds software on top of Nvidia GPUs, making the platform potentially easier for customers to use. Nvidia owns about $25 million worth of Nebius shares.
WeRide (NASDAQ: WRD): Nvidia's smallest position ($23.6 million) is in the autonomous car company WeRide, which is working to commercialize self-driving vehicles. Not only is WeRide backed by Nvidia, but the company also uses Nvidia GPUs and AI software in its vehicles. Nvidia is also working on autonomous driving technology.
The best of the bunch
Nebius is currently the best stock that Nvidia owns. The company flew under the radar earlier this year because it was listed on the Nasdaq Stock Exchange just recently (in October) after a nearly three-year hiatus. The Russian tech giant Yandex, which was delisted due to sanctions after Russia invaded Ukraine, formerly owned Nebius' assets.
The assets were ultimately split off from Yandex to form Nebius, which is now based in Amsterdam and has operations in the U.S. Following its listing on the Nasdaq, Nvidia and a group of large venture capital (VC) firms invested $700 million in a private placement. Nebius would later go on to raise an additional $1 billion in financing through senior secured notes.
At a roughly $11.4 billion market cap, the stock is much cheaper than CoreWeave. Management is also guiding for annual revenue in the mid-single-digit billions range at high margins over the medium term.
I also think that Nebius' more user-friendly approach with its AI solutions could be a positive development down the line, particularly for companies that are not as sophisticated in AI and are beginning to deploy AI solutions. Nebius also currently has a more diverse customer base than CoreWeave and could benefit immensely if one of its earlier-stage customers hits it big.
Should you invest $1,000 in Nebius Group right now?
Before you buy stock in Nebius Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,854!*
Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 7, 2025
Bram Berkowitz has positions in Nebius Group. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Nasdaq and Nebius Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jensen Huang's Nvidia Owns 6 Stocks. Here's the Best of the Bunch.

Most investors are best served by owning high-quality "forever" stocks, even if these stocks are only apt to produce average returns.
Every now and then, though, there's good reason to take a shot on a higher-risk ticker with a ton of upside potential. The key is just identifying the right -- even if temporary -- growth opportunity.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
To this end, here's a rundown of three stocks with the potential to produce monster-sized gains over the course of the coming 10 years thanks to recent technological and sociocultural developments. There are still gains to be made past that point to be sure, but the hottest part of the underlying opportunities should be cooling off by then.
Intuitive Machines
After a 53-year hiatus, mankind is going back to the moon. As of its most recent plans, NASA intends to land astronauts on the moon again sometime in 2027. These missions are going to be considerably more complex than the Apollo landings in the late 1960s and early 1970s, however. This time around we're going to do far more than merely go there and come back. The next missions are ultimately laying the groundwork for future mining, scientific development, and perhaps even colonization. And NASA's using new technologies to ensure the agency gets the very most out of these expensive trips.
Enter Intuitive Machines (NASDAQ: LUNR).
In simplest terms, Intuitive Machines makes a great deal of the tech that will make the upcoming moon missions a success. Cargo landers, on-surface transportation drones, and in-orbit payload transfer solutions are all in its wheelhouse. It's also developing lunar-based communications satellites and mining/prospecting tools, as well as testing a fission-based power plant that could be deployed as soon as 2028.
The big challenge in owning a stake in Intuitive Machines right now is a lack of profits, or for that matter, minimal revenue. Although there is some revenue being booked, this is mostly modest partnership/developmental funding that's not even fully covering the company's operating and R&D costs.
There's little doubt that the bigger bucks are coming sooner than later, though. Global Market Insights expects the worldwide lunar lander and rover market alone to grow at an average annual pace of about 10% through 2034. This company's equipment just needs to start being sent into space more often -- and to the moon in particular -- to start producing a tangible and meaningful fiscal benefit. That's not going to happen in earnest until the Artemis rocket responsible for getting the next manned moon missions off the ground (literally as well as figuratively) is satisfactory reliable, along with the Orion capsule that will house actual crew members. That's apt to take until the aforementioned 2027.
Just don't tarry if you're a believer. The market's got a knack for rewarding stocks based on a company's plausible future more so than its present.
NuScale Power
The proliferation of data centers (and artificial intelligence data centers in particular) has undeniably given rise to some amazing new technological tools for consumers and corporations alike. Data centers have a serious downside, though. That is, they consume a massive amount of electricity. Not only is this straining too many utility companies' power outputs, but it's environmentally unfriendly. As it turns out, the bulk of the world's current electricity production isn't yet coming from renewables.
NuScale Power (NYSE: SMR) offers an optimal solution to both problems. See, this company designs and builds small-scale nuclear reactors that can be installed and operated where the electricity they generate is needed.
It's not nearly as crazy as it sounds, if the fact that NuScale is far from being the only name working on such tech is any indication. Nano Nuclear and Oklo are also so-called "pure plays" within the small modular reactor (or SMR) space, while Fluor and Brookfield-owned Westinghouse are a couple of the bigger and more diversified companies also working on the idea. It's a legitimate premise, even if there's a bit more work to be done; most of that work is just clearing regulatory hurdles.
Even those walls are starting to crumble, however. On Friday President Donald Trump signed an executive order to ease the regularly requirements for approving new nuclear power reactors. Although not specifically supportive of NuScale Power, it's a big step in the right direction.
Now, interested investors might not want to blindly rush into a position here. This stock has outright soared just since late last week, mostly in anticipation of President Trump's executive order. Shares have more than doubled since their early April low, in fact, nearing a 52-week high as a result. Given that the company's still got years of work left to do before meaningful, profit-producing revenue starts to flow, this stock could slide just as easily as it rallied.
Just keep the bigger, 10-year picture in mind, using any decent pullback as a buying opportunity. Goldman Sachs believes artificial intelligence alone is going to fuel a 165% increase in data centers' usage of electricity between now and 2030. Solar, wind, and hydro power installations on their own can't keep up with that pace.
Recursion Pharmaceuticals
Finally, add Recursion Pharmaceuticals (NASDAQ: RXRX) to your list of monster stocks to buy and hold for the next 10 years.
Just as the name suggests, Recursion is a drug company. Although it's got nothing on the market yet, it has six different drugs in early-stage trials right now. Most of these drugs are being developed in partnership with better-known pharma companies, including Sanofi, and the bulk of its R&D pipeline is aimed at cancer, where the opportunity for better treatments is always significant.
That's not the compelling reason you might want to take on a 10-year stake in Recursion Pharmaceuticals, however. Rather, the reason Recursion is such a hot prospect is how it's designing and developing the drugs in its pipeline. Simply put, this company is using artificial intelligence to digitally figure out what pharmacologically works -- and what doesn't work -- before any resources are needlessly consumed.
It's called Recursion OS. With 36 petabytes (36 million gigabytes) worth of proprietary data about chemical, biological, and molecular reactions ready to be accessed by a hypothetical drug-development test, pre-trial R&D work that used to require months if not years to complete can now be done in weeks, if not days. Costs that normally measure in the millions of dollars can be pared back to hundreds of thousands of dollars, or less.
Recursion OS isn't a substitute for true clinical trials, to be clear -- the FDA and other regulatory agencies will still require these drugs to go through the real-world testing process. The AI-powered platform can provide a drug developer with a much better idea of what's likely to fail or succeed, though, limiting wasted resources or perhaps encouraging the development of a treatment that might have otherwise been left untreated.
Like Intuitive Machines and NuScale, Recursion Pharmaceuticals is presently unprofitable, and likely to remain that way for some time.
That doesn't really matter in the long run, though. Recursion Pharmaceuticals is well-positioned to lead the artificial intelligence drug discovery market that Straits Research expects to grow an annualized pace of more than 30% through 2030. That should put it on a trajectory that gets it over the profit hump. Investors are of course likely to reward mere progress toward that point in the meantime.
Should you invest $1,000 in NuScale Power right now?
Before you buy stock in NuScale Power, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $804,688!*
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Monster Stocks to Hold for the Next 10 Years

Artificial intelligence (AI) has taken over Wall Street. The leaders in this rapidly growing field are attracting significant attention. Many have produced outstanding returns over the past two years. Naturally, most investors want to cash in on this, but the biggest names in the industry tend to trade at steep premiums. It might be worth considering smaller, under-the-radar AI-focused companies that haven't performed well yet but boast significant upside potential.
And some think that description fits Recursion Pharmaceuticals (NASDAQ: RXRX), an AI-focused biotech company. The stock has attracted the attention of some of the most famous names in the investing world, including Cathie Wood, CEO of Ark Invest. But is Recursion Pharmaceuticals really worth investing in right now after shedding 35% of its value this year?
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Bad news trumps good news
Recursion Pharmaceuticals got some good news earlier this year. The U.S. Food and Drug Administration announced it would phase out animal testing in favor of other methods, including AI-based models. That fits right into the biotech's strategy.
Recursion Pharmaceuticals specializes in using AI to speed up the discovery and development of novel therapies, which is an incredibly expensive and time-consuming process. If Recursion Pharmaceuticals can achieve its goal of cutting the time and money it takes to develop drugs by meaningful amounts, its stock could skyrocket over the long run.
However, it isn't there yet, and in the meantime, it is facing problems leading to its share price falling. Recursion Pharmaceuticals recently released its first-quarter results, during which it announced it was streamlining its pipeline to focus on fewer candidates and deprioritizing others -- a fancy way of saying it is abandoning the development of some investigational therapies that did not look promising enough to justify the investment.
That's not necessarily a bad thing. But for a company that claims it can deliver competitive medicines in less time and with less money than its peers, it's a bit worrying that it has yet to send a single product to late-stage studies and is instead forced to abandon some candidates.
First, if Recursion Pharmaceuticals' AI-based algorithm is so effective at identifying promising compounds, why doesn't the company have at least one product in phase 3 clinical trials yet? Second, recent political developments threaten the company's ability to raise capital. The Trump administration cut federal funding that often trickles down to clinical-stage biotechs. These moves might make it harder for Recursion and others like it in the future. The biotech's shares recently fell due to growing fears of this outcome. Is there any hope for Recursion Pharmaceuticals?
A high-risk, high-reward play
The company's bulls might point out a few things. First, Recursion Pharmaceuticals' AI-based operating system (OS) isn't perfect, but one of its strengths could be its network effect. Successes and failures allow the company to fine-tune its OS, making future successes more probable. So, the fact that the company recently had to give up on some programs isn't the end of the world. It might actually help improve things.
Second, Recursion Pharmaceuticals has a reasonably strong cash position. It ended the first quarter with $509 million in cash and equivalents, down from the $603 million it had as of the end of 2024. The company thinks this will be enough to sustain its operations until mid-2027. It's also worth pointing out that Recursion Pharmaceuticals has partnerships with leading drugmakers, including Roche, Bayer, Merck, and Sanofi.
Recursion Pharmaceuticals could get more money from these successful pharmaceutical companies, even if it is more difficult for the biotech to access funding elsewhere. That said, Recursion Pharmaceuticals remains a high-risk option.
Any drugmaker without a single medicine in phase 3 studies carries above-average risk. In Recursion Pharmaceuticals' case, it has yet to release blowout phase 2 data from highly promising candidates. It also faces other headwinds, including the possibility that others will steal its modus operandi and develop better AI-based models for drug discovery, especially now that regulators are increasingly moving in that direction.
If Recursion Pharmaceuticals can achieve its goals, it could deliver life-changing results, but it is just as likely (if not more) that the company will fail. That's why only those with an appetite for risk and volatility should consider initiating a small position in this stock.
Should you invest $1,000 in Recursion Pharmaceuticals right now?
Before you buy stock in Recursion Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*
Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 5, 2025
Prosper Junior Bakiny has positions in Recursion Pharmaceuticals. The Motley Fool has positions in and recommends Merck. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy This Beaten-Down Artificial Intelligence (AI) Stock on the Dip?

The artificial intelligence (AI) revolution is reshaping our world at an unprecedented pace. As AI technology evolves, it's set to fundamentally transform countless industries through enhanced automation, operational efficiency, and dramatic improvements in workforce productivity.
Since ChatGPT's breakthrough debut in January 2023, investors have flocked to companies pioneering this space, driving significant valuation increases across the diverse AI landscape. However, amid this enthusiasm, several promising AI companies remain surprisingly undervalued compared to their long-term potential.
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Two companies stand out with their strategic positioning within the AI value chain. Both are uniquely positioned to capitalize on AI's expanding adoption across enterprise and consumer markets, yet their current valuations fail to reflect their competitive advantages and growth trajectories. For investors seeking exposure to the AI revolution without paying premium prices, these two stocks are worth considering right now.
The nuclear energy disruptor
Oklo (NYSE: OKLO) represents a powerful convergence of AI and next-generation nuclear technology. The company harnesses sophisticated AI algorithms to revolutionize the design and operational efficiency of its compact fast reactors -- cutting-edge micro reactors engineered specifically to deliver clean, reliable power directly to energy-hungry data centers.
This unique capability directly addresses one of the most overlooked challenges of the AI revolution: its massive energy consumption. According to the Center on Global Energy Policy, U.S. data centers alone could require more than 14 gigawatts of new capacity by 2030, equivalent to powering roughly 10.5 million homes. Internationally, the trend is even more pronounced in countries like Ireland, where data centers are projected to consume up to 32% of the nation's total electricity generation.
Oklo's edge lies in both speed and precision. Its AI-driven design process shortens development cycles and cuts costs in an industry plagued by delays and regulatory drag. Meanwhile, its micro reactors can be deployed on-site, eliminating transmission losses and delivering localized, carbon-free power to energy-intensive AI infrastructure.
Despite rising 32% year to date as of May 9, 2025, Oklo's market capitalization remains remarkably modest at just $3.9 billion. This valuation appears significantly underpriced when considering the looming energy bottleneck that threatens to constrain AI's growth trajectory.
As computing requirements for advanced AI systems continue to multiply, Oklo's technology represents not merely an alternative energy play but potentially a mission-critical enabler for the next phase of AI development. For investors seeking exposure to the AI revolution through an unconventional yet fundamentally essential component, Oklo offers a compelling proposition at current price levels.
The drug discovery pioneer
Recursion Pharmaceuticals (NASDAQ: RXRX) is redefining drug development by applying AI at an industrial scale. At the core of its strategy is the Recursion OS, a proprietary platform that unites massive biological and chemical data sets with one of the world's most powerful supercomputers. This system conducts millions of automated wet-lab experiments weekly, using machine learning to map trillions of relationships across human biology and chemistry.
In May 2025, Recursion announced a sharpened focus on high-impact clinical programs in oncology and rare diseases while strategically trimming its pipeline following a data-driven review. Its lead candidates -- including REC-4881 for familial adenomatous polyposis and REC-7735 for breast cancer -- have demonstrated promising early results.
Meanwhile, its partnership ecosystem continues to strengthen. Recursion recently secured a $7 million milestone payment from Sanofi while advancing its other key collaborations with Roche and Merck KGaA.
The company's AI-first approach enables faster, more precise therapeutic discovery while significantly reducing development costs -- a critical advantage in this capital-intensive, high-risk industry. With $509 million in cash and a runway extending into mid-2027, Recursion possesses ample resources to navigate market volatility while advancing its novel platform and high-value pipeline.
Despite these compelling tailwinds, shares have declined 35% year to date, bringing Recursion's market cap to just $1.76 billion, a valuation disconnect that presents a unique opportunity for investors. As AI continues to disrupt traditional drug discovery strategies, Recursion stands out as a significantly undervalued leader at the intersection of machine learning and medicine, positioned to unlock the next generation of precision therapeutics.
Should you invest $1,000 in Oklo right now?
Before you buy stock in Oklo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*
Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 5, 2025
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Top Artificial Intelligence (AI) Stocks to Buy Right Now

Recursion Pharmaceuticals (NASDAQ: RXRX) didn't have a fine start to the working week on Monday, at least as far as its stock was concerned. Investors traded out of it following the clinical-stage biotech's first-quarter earnings release and business update, and the share price was down by 15% in mid-session trading. The S&P 500 index was doing comparatively better, with a 0.3% decline.
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Light revenue and a deepening net loss
For the quarter, Recursion -- which although a clinical-stage company earns some coin from collaboration agreements with large pharmaceutical companies -- booked just over $14.7 million in revenue. That topped the nearly $13.8 million in the same period of 2024.
Operating costs nearly doubled across that stretch of time, however, resulting in a much deeper net loss. Recursion's bottom-line shortfall worsened to more than $202 million ($0.50 per share) against the year-ago quarter's $91 million deficit.
Both headline numbers missed analyst estimates, if not by much. On average, pundits tracking Recursion stock anticipated slightly under $15 million for revenue, and a $0.49-per-share net loss.
Aiming for the stars with AI
The company is notable for being a biotech that has actively and enthusiastically embraced artificial intelligence (AI) technology to discover and develop new drugs. It is currently developing treatments mainly for different types of cancer, but also has a pair of rare disease programs. Yet none of these have yet advanced to later stages, and investors might be hungry for more progress at this point.
That being said, AI in medicine is still quite a new factor, and if utilized effectively could speed up both the discovery and development processes significantly. At this point Recursion is a stock for investors willing to accept a significant degree of risk; however, the payoffs could eventually be considerable.
Should you invest $1,000 in Recursion Pharmaceuticals right now?
Before you buy stock in Recursion Pharmaceuticals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 5, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Recursion Pharmaceuticals, Inc.

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