Recursion Pharmaceuticals (RXRX) Stock: Nvidia Bails While Cathie Wood Buys the Dip

TLDR

• Nvidia sold its entire 7.71 million share stake in Recursion Pharmaceuticals by December 31, 2025
• Recursion stock swung 14% lower intraday Wednesday before closing 2% higher
• ARK Invest bought 1.25 million shares across two ETFs on the same day
• ARK Innovation ETF now holds 21.8 million shares of RXRX worth ~$77 million
• Just 38% of analysts rate RXRX a Buy; average price target of $7 implies 98% upside

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Nvidia’s latest 13-F filing confirmed it had fully exited its position in Recursion Pharmaceuticals as of December 31, 2025. The chipmaker had held 7.71 million shares for approximately two years before selling everything.

Recursion Pharmaceuticals, Inc., RXRX

The news hit the stock hard on Wednesday. Recursion dropped as much as 14% intraday before reversing course and closing 2% in the green — a notable swing in a single session.

Nvidia had originally backed Recursion as part of its strategy to invest in AI applications across industries. The stake had long been viewed as an endorsement of Recursion’s AI-powered drug discovery model, which uses machine learning and large biological datasets to identify drug candidates faster than traditional methods.

No reason was given for the exit, and the exact timing within Q4 2025 was not disclosed.

Cathie Wood Moves In the Opposite Direction

As Nvidia was walking away, ARK Invest was buying. Cathie Wood’s firm picked up 1.25 million Recursion shares across two ETFs on Wednesday, per ARK’s daily trading notification.

ARK had been steadily building its Recursion position for months. Wednesday’s selloff gave the firm a chance to add more at a lower price.

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

Analysts Stay Cautious

The dueling moves reflect a wider divide on Wall Street over Recursion’s prospects.

Only 38% of analysts covering the stock carry a Buy rating — low for a company that has already fallen 68% over the past year and is down 14% in 2026 alone.

That said, those who do believe in the stock see room to run. The average analyst price target sits at $7, implying roughly 98% upside from current levels.

RXRX closed Wednesday at $3.54.

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