10 Best Small Cap AI Stocks to Buy According to Analysts

7. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)

Number of Hedge Fund Holders: 19

Market Capitalization as of July 16: $2.26 billion

Average Upside Potential as of July 16: 24.52%

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the best small cap AI stocks to buy according to analysts. On July 8, Rallybio Corporation (NASDAQ:RLYB) announced a definitive agreement to sell its interest in REV102 to its joint venture partner, Recursion Pharmaceuticals. The deal is valued at up to $25 million, with an upfront equity payment of $7.5 million and near-term milestone payments.

REV102 is an ENPP1 inhibitor currently in preclinical development for the treatment of hypophosphatasia/HPP, which is a rare inherited disorder affecting bone and tooth mineralization. The program originated from a joint venture between Rallybio and Recursion focused on discovering and developing novel, orally available small-molecule inhibitors of ENPP1 for HPP patients.

REV102, the lead candidate from this collaboration, entered IND-enabling studies in early 2025. Rallybio will also receive low single-digit royalties on all future net sales of REV102 by Recursion. Rallybio may also receive additional payments if Recursion sells the REV102 program to a third party.

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company that decodes biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the US.

Rallybio Corporation (NASDAQ:RLYB) is a clinical-stage biotechnology company that develops and commercializes life-transforming therapies for patients suffering from severe and rare diseases.