Recursion Pharmaceuticals, Inc. (RXRX): A Bull Case Theory

We came across a bullish thesis on Recursion Pharmaceuticals, Inc. on r/stocks by  Antique-Reference585. In this article, we will summarize the bulls’ thesis on RXRX. Recursion Pharmaceuticals, Inc.'s share was trading at $4.67 as of January 16th.

Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the United States.

RXRX is emerging as a compelling investment in the AI-driven pharmaceutical space, particularly as macro uncertainties, including the ongoing Powell investigation and potential challenges to U.S. credit credibility, create turbulence in broader markets. While large-cap tech like $GOOG continues to grow—recently surpassing a $4 trillion market cap—these behemoths are unlikely to double from here. The real upside lies with companies leveraging AI in high-growth niches, and Recursion fits this profile.

Unlike peers such as $LLY, which has partnered with Nvidia on a $1 billion AI pharmaceutical initiative but is largely priced in, or $ILMN, which has transformed from a hardware supplier to a high-margin AI data services provider but has already doubled since its low, $RXRX offers both strategic positioning and an attractive valuation.

Recursion is a direct equity partner with Nvidia, serving as a core ally in AI-driven drug discovery, with its proprietary Recursion OS integrating vast biological imaging data into a closed-loop AI experimentation platform—a rare capability at petabyte scale.

Under CEO Chris Gibson, the company has focused on "translating biology into search problems," mirroring Nvidia and Google’s approach to AI, and has built the BioHive-2 supercomputer, the industry’s most advanced AI platform. Coupled with a substantial cash reserve lasting through 2027, this provides financial stability and operational runway for aggressive growth.

Trading in $RXRX is currently under the radar, offering a low-demand entry point with the potential for significant upside, including the possibility of doubling once capital rotates into the AI pharmaceutical sector, making it a standout opportunity for investors seeking high-risk, high-reward exposure.

Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted the company’s CRISPR gene editing leadership, Casgevy’s commercial potential, and a strong pipeline. CRSP’s stock price has appreciated by approximately 30.60% since our coverage as the thesis played out. Antique-Reference585 shares a similar focus on high-growth biotech but emphasizes Recursion Pharmaceuticals ($RXRX) and its AI-driven platform with Nvidia partnership.

Recursion Pharmaceuticals, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held RXRX at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the potential of RXRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.