Nvidia Blackwell AI Chip, Recursion Pharmaceuticals AI Supercomputer, AI Market Growth

The AI industry is experiencing significant growth and investment, despite challenges posed by tariffs and trade tensions. Nvidia, a leading AI chip manufacturer, has started producing its flagship AI chip, Blackwell, in the US and plans to increase production over the next 12 to 15 months. Recursion Pharmaceuticals, a biotech company, has received a boost from the FDA's decision to phase out animal testing in drug development, and has built the largest AI supercomputer in the pharmaceutical industry with the help of Nvidia. Other companies, such as Alphabet, Advanced Micro Devices, and Taiwan Semiconductor, are also making significant strides in the AI market. Additionally, AI-themed cryptocurrencies have surged in price, and AI security startups, such as Pillar Security, are raising funds to expand their research and development efforts. The long-term prospects for AI look promising, with the semiconductor industry expected to reach $1 trillion by 2030.

Nvidia Faces Tariff Challenges

The Trump administration's tariffs have caused uncertainty in the stock market, affecting Nvidia's growth. Despite this, Nvidia's CEO Jensen Huang believes the tariffs will not have a significant short-term impact on the company. Nvidia has started producing its flagship AI chip, Blackwell, in the US and plans to increase production over the next 12 to 15 months. The company's growth may be affected by cloud computing and trade tensions with China. However, the long-term prospects for AI look promising, with the semiconductor industry expected to reach $1 trillion by 2030. Nvidia's stock has fallen 25% from its high, making it a potential buying opportunity.

Nvidia's Growth Despite Tariffs

Nvidia's Tariff Challenges

Recursion Pharmaceuticals Gets Boost

Recursion Pharmaceuticals, a biotech company, has received good news with the FDA's decision to phase out animal testing in drug development in favor of other methods, including AI-based testing. The company has built the largest AI supercomputer in the pharmaceutical industry with the help of Nvidia. Recursion's operating system helps predict whether clinical compounds would effectively treat certain diseases. The company's shares soared on the news, but it remains down significantly over the trailing-12-month period. Recursion's approach could revolutionize how drugs are developed, but it has yet to produce tangible results.

Recursion Pharmaceuticals' AI Breakthrough

2 AI Stocks to Buy Now

Despite concerns over President Trump's tariffs, tech companies have faced headwinds before and can manage difficult times. Two AI stocks to buy now are Advanced Micro Devices and Alphabet. Advanced Micro Devices has been successful in the market for central processing units and has put a focus on developing data center business, serving the AI market. Alphabet's Google Cloud is a significant player in the cloud market, delivering double-digit quarterly growth, and is benefiting from demand in the AI market.

3 AI Stocks to Buy Before Market Recovery

The stock market has been volatile, but AI is expected to remain a great area of tech to invest in over the long haul. Three AI stocks to buy before the market recovers are Alphabet, Advanced Micro Devices, and ASML Holding. Alphabet has a ton of data through YouTube and Google Search, and its Google Cloud is delivering double-digit quarterly growth. Advanced Micro Devices is proving it can excel in the AI chip market, and ASML Holding plays a key role in the semiconductor industry, developing photolithography machines needed to produce advanced chips.

Alphabet Partners with PJM for Grid Optimization

Alphabet's Google has partnered with PJM Interconnection, the largest electrical grid operator in North America, to roll out artificial intelligence technologies that will help gain new power supplies connected faster. Alphabet's shares have been down 16% year to date, but the company has tremendous opportunities in AI, particularly with its data from YouTube and Google Search. Alphabet's Google Cloud is also delivering double-digit quarterly growth, benefiting from demand in the AI market.

Taiwan Semiconductor Expects AI Revenue to Double

Taiwan Semiconductor Manufacturing Company Limited expects its AI revenue to double in 2025 despite tariff uncertainty. The company has outperformed expectations for the first quarter due to high demand for AI chips. Taiwan Semiconductor's earnings jumped by 58% year over year, while sales increased by 39%. The company estimates revenue to range between $28.4 billion and $29.2 billion in the current quarter, exceeding Wall Street's expectations.

TSMC Surpasses Q1 Targets

Taiwan Semiconductor Manufacturing has outperformed expectations for the first quarter due to high demand for AI chips. The company's earnings jumped by 58% year over year, while sales increased by 39%. TSMC estimates revenue to range between $28.4 billion and $29.2 billion in the current quarter, exceeding Wall Street's expectations. The company's strong Q2 guidance implies a conservative stance for the rest of the year, but analysts remain positive about the company's prospects.

AI Coins Revive

AI-themed cryptocurrencies, such as TAO and FET, have surged in price, outpacing the broader digital-asset market. The sudden upsurge extends the bullish outlook witnessed throughout the first quarter of 2025. AI coins have recorded significant growth, capturing 35% of global investor interest. The resurgence is driven by Nvidia's CEO visiting China despite the trade war and Bitcoin's stability. As long as Bitcoin holds strong, AI tokens are positioned for further growth.

Pillar Security Raises $9 Million

Pillar Security, an AI security startup, has raised $9 million in seed funding to expand its research and development and go-to-market efforts. The company's solution is designed to meet the needs of a new age where software has gained agency and data itself has become executable. Pillar Security's technology is built with real-world AI threat intelligence, delivering a new class of protection designed explicitly for AI-related security risks.

Key Takeaways

Nvidia has started producing its flagship AI chip, Blackwell, in the US and plans to increase production over the next 12 to 15 months.
Recursion Pharmaceuticals has built the largest AI supercomputer in the pharmaceutical industry with the help of Nvidia.
The FDA's decision to phase out animal testing in drug development is expected to boost the use of AI-based testing methods.
Alphabet, Advanced Micro Devices, and Taiwan Semiconductor are making significant strides in the AI market.
AI-themed cryptocurrencies, such as TAO and FET, have surged in price, outpacing the broader digital-asset market.
Pillar Security, an AI security startup, has raised $9 million in seed funding to expand its research and development efforts.
The semiconductor industry is expected to reach $1 trillion by 2030, driven by growth in the AI market.
Nvidia's stock has fallen 25% from its high, making it a potential buying opportunity.
Taiwan Semiconductor expects its AI revenue to double in 2025, despite tariff uncertainty.
The long-term prospects for AI look promising, with many companies investing heavily in AI research and development.