Top 10 AI-Powered Biotech Stocks to Buy Now

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

Number Of Hedge Fund Holders: 21

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), a clinical-stage biotech, is pioneering the use of artificial intelligence and machine learning to accelerate drug discovery, with a focus on rare diseases and oncology. Its proprietary Recursion OS combines high-throughput biology and multimodal datasets to streamline therapeutic development.

In September 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s stock surged nearly 7% following progress across key programs and regulatory milestones. A pivotal step was the $12.5 million milestone payment to Rallybio, tied to the advancement of REV102, an investigational ENPP1 inhibitor for the rare disease hypophosphatasia. This achievement underscores the company’s strategy of advancing innovative assets through collaborative development.

On the technology front, Recursion deepened its AI integration through the launch of Boltz-2, a model built with MIT on the BioHive-2 platform to enhance predictions for small molecule–protein interactions. A recent merger with Exscientia further expanded its capabilities, combining expertise in small molecule design with the business’s AI-driven infrastructure. These moves position the company as one of the best biotech stocks leveraging AI to accelerate discovery.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)’s pipeline now centers on six lead candidates, four oncology programs, and two rare disease therapies. Key assets, including REC-aK7 for cancer and REC-4881 for familial adenomatous polyposis, continue advancing in clinical trials, with updates expected at major industry conferences this month.

The corporation’s September highlights also include FDA progress on rare disease assets, expanded collaborations with MIT, Tempus, and HealthVerity, and growing investor engagement, reflected in presentations such as Needham’s healthcare session in New York.