Jim Cramer Hints at a Bigger Agenda Behind Tariffs and Breaks Down These 7 Stocks

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

Number of Hedge Fund Holders: 21

A late-breaking FDA policy shift caught Cramer’s attention as a breakthrough moment for small-cap biotech company Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX). Cramer framed this as a deregulatory milestone, and one that could play directly into Recursion’s AI-focused drug discovery platform. Here’s what he said:

“Alright, we got some news from the FDA that’s impacting the stock. I don’t normally do small caps, but there’s an FDA announcement, plan to phase out animal testing requirements for monoclonal antibodies. By the way, Regeneron, biggest in that. But what they’re gonna do is you gotta do it AI. And the AI company that has it, I’ve had them on, is Recursion Pharmaceuticals, RxRx, backed by Jensen Huang and NVIDIA. And they’re going to be the winner in how we decide much faster to have drugs approved in this country. It’s the first real deregulation I’ve seen. Congratulations to the people who are trying to deregulate.”

RXRX is a stock Jim Cramer recently discussed. While we acknowledge the potential of RXRX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RXRX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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