Recursion Pharmaceuticals (RXRX) Stock Swings 14% as Nvidia Dumps and Cathie Wood Buys

TLDR

• Nvidia sold its entire 7.71 million share stake in Recursion Pharmaceuticals, revealed via its 13-F filing
• Recursion stock dropped as much as 14% intraday Wednesday before recovering to close 2% higher
• Cathie Wood’s ARK Invest bought 1.25 million shares across two ETFs on the same day
• ARK Innovation ETF now holds 21.8 million shares of Recursion, worth around $77 million
• Only 38% of analysts rate RXRX a Buy, though the average price target of $7 implies 98% upside

Nvidia’s 13-F filing revealed it had exited its entire position in Recursion Pharmaceuticals by December 31, 2025. The chipmaker had held 7.71 million shares for roughly two years before selling every last one.

The market didn’t take it well — at first. Recursion stock dropped as much as 14% intraday Wednesday before clawing back all of those losses to close 2% higher.

Recursion Pharmaceuticals, Inc., RXRX

Nvidia had originally invested in Recursion as part of its push to back AI applications across industries, including healthcare. The investment had been seen as a stamp of approval for Recursion’s AI-driven drug discovery platform.

Recursion uses artificial intelligence and machine learning to speed up drug development. Its platform combines large biological and chemical datasets to identify potential drug candidates faster than traditional methods.

The exact timing of Nvidia’s sale within Q4 2025 wasn’t disclosed in the filing. No reason was given for the exit.

Cathie Wood Steps In

While Nvidia was heading for the exit, ARK Invest was heading the other way. Cathie Wood’s firm bought 1.25 million Recursion shares across two ETFs on Wednesday, according to ARK’s daily trading notification.

ARK had already been steadily adding to its Recursion position in recent months. Wednesday’s dip gave the firm a chance to buy more at a lower price.

The ARK Innovation ETF now holds 21.8 million shares of Recursion, worth around $77 million. That’s nearly three times the size of Nvidia’s former stake.

Wall Street Divided

The two moves highlight a clear split in how investors view Recursion right now.

Nvidia walked away. ARK loaded up. And Wall Street sits somewhere in the middle.

Just 38% of analysts covering Recursion have a Buy rating on the stock. That’s a low conviction number for a company trading near multi-year lows.

Recursion stock is down 14% in 2026 so far and has lost 68% of its value over the past year.

Still, those analysts who do like the stock see real upside. The average price target sits at $7, which would represent a 98% gain from current levels.

Whether Cathie Wood’s bet pays off — or whether Nvidia made the right call — remains to be seen. For now, RXRX closed Wednesday at $3.54.

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