10 AI Stocks That Will Skyrocket

4. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Upside Potential: 38.03%

Number of Hedge Fund Holders: 19

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of 10 AI stocks that will skyrocket. Morgan Stanley has lowered its price target on Recursion Pharmaceuticals (NASDAQ:RXRX) to $5 from $8, while maintaining an Equal Weight rating on the stock. The revision comes in response to the company’s recent strategic updates, including a restructured pipeline, workforce reduction, and revised financial guidance. In a note to investors, the firm cited Recursion’s recent decision to prioritize core programs and streamline operations, including a 20% reduction in headcount, as key drivers for the model revision. The company also issued updated guidance on cash burn, signaling tighter capital discipline as it focuses on long-term sustainability.

Morgan Stanley noted that while the moves could support operational focus and extend cash runway, they also reflect the challenges of advancing a broad pipeline under current market conditions. The firm views the restructuring as a necessary, though measured, step to align resources with the most promising opportunities in the portfolio. Despite the reduced target, Morgan Stanley’s Equal Weight rating suggests a neutral stance, with the belief that both upside and downside risks are now more balanced given the new strategy and cost structure.

Recursion Pharmaceuticals, Inc. (RXRX) is recognized for its advanced use of computational methods and machine learning to accelerate drug discovery. The firm combines biology, chemistry, and automation with data-driven approaches to identify potential treatments faster and more efficiently than traditional methods.