$RXRX backed by $NVDA – Largest Supercomputer in Biotech – Larger SI than Meme stocks.

With everybody and their nan screaming and shouting about $NVDA and the "AI revolution", it surprises me that a startup company they've invested in, actively working with and providing the latest hardware too, is literally never talked about by retail. Even with its ridiculous high short float, higher than every meme stock.

I was going to post a load of picture illustrating this but WSB only lets me add 1. So here's a load of text for those of you who can read.

1.  Backed by $NVDA as shown in their latest 13-f, they own 7,706,363 shares.

2. RXRX thanks to NVDA now owns the 35^th most powerful supercomputer in the world and 1^st in the biotech sector. NVDAs CEO Jensen Huang refers to RXRX as a “startup company we work with”, dismissing claims that it’s “just a random investment”. Segment can be found below. Watch the video below where he mentions them directly. (video below where he talks about them directly

https://x.com/recursionpharma/status/1793748650574663941?s=46

https://preview.redd.it/myhy0a7x0q5d1.jpg?width=1170&format=pjpg&auto=webp&s=b9dd6b2e92c2bdb4513ecda190444c7c9a8f285e

3. It’s the most shorted name in the Gene editing sector and a higher short than almost all meme stocks. According to the latest data provided by Fintel.

4. A healthy balance sheet where assets exceed liabilities 3-1 (Assets 650m and liabilities 190m). 

5.  With 22% of the float short, 27% owned by insiders,10% owned by Cathie woods and another 15% by four private funds, there are very few shares left to play with. This does not take into account that “state street corp” & “geode capital management”, two funds heavily positioned prior to previous "unusual moves", feel free to dig into this yourself.

6. Now everything Cathie has touched has been a disaster par Tesla, leading a lot of people to automatically bid against her, aka short all the speculative names she buys. RXRX is heavily weighted in the ARKG fund and the size continues to increase.

7.  Now that may seem insignificant but it's not, why? Because other funds have been accumulating at an aggressive rate too. There is a NET benefit for some large money to push this higher.

8.  Meanwhile, it's being aggressively shorted both in shares and via puts. With Citadel and Citigroup extremely deep in. I suspect that a lot of cathie wood haters are in the same boat.

9. Amongst the investors with high portfolio allocations in RXRX a few stick out.

You have of course $NVDA with RXRX as their second largest holding and 23% of their port allocated here.

Kinnevik AB, a Swedish investment firm has full ported RXRX. 

DCVC has 50% of their holdings portfolio positioned and they’re known as “Deep Tech Venture Capital Firm”. https://www.dcvc.com/team/ Their team is more than qualified to spot these types of unique investment opportunities.

Then you have Mic Capital Management, who, and I quote: takes a fundamental, bottom-up investment approach across all asset classes using rigorous analysis in the form of on-the-ground interaction with company management teams, focusing on numerous factors including their strategic objectives, corporate governance standards, and investment plans.

These funds appear to have a strong success rate in picking out some winners. I’ve dug deeper into these 3 in particular, feel free to do the same.

10. People talk about how $NVDA is going to power the AI revolution, yet very few talk about who the winning adopters will be. Which kind of interests me as to why NVDA have invested in them. RXRX has essentially created a super computer to speed up the time and cost of new drug discovery. By using enormous data sets and partnering with some of the largest companies in the world, it's positioned to take advantage of everything AI has to offer. Notice the "Priority access to compute hardware and DXGCloud resources.

11. The main Gamma exposure sits and $9-$11 (A break and hold above $11 is where things would get a little more interesting).

12. And finally, the market environment. Last time names with high short floats were targeted they slowly got picked up one by one. The names which presented themselves with strong future potential and back by some other large money players put in prolonged moves. But that's not all, as the Central European bank and Canada have already cut their rates by 0.25 it's likely the USA will follow. What does that mean? Well, generally speaking small caps often take the lead once this transition takes place.

13. Whilst it's short float is extremely high, some large money thinks they're wrong which means we have the wind at our backs. Not just via the extreme fund positioning but by where they think it heads next. Now I am not the biggest fan of analysts nor do I follow their guidance, however it's awfully nice to know where the direction of that wind is heading.

14. So in summary, you have $NVDA leading the market and the extremely strong sentiment of the AI revolution. You have people like Elon Musk spending billions of dollars in a frantic attempt to build a super computer. Then you have RXRX in the middle of all of it, with one of the worlds largest super computers, heavily shorted and some activist funds heavily increasing their positions. For me, I can see how this name could garner a lot of FOMO from both retail and institutional investors.

I like it, I like it a lot. Looking to add September calls, current position below.