In a significant turn of events, Nvidia divested its entire stake in Recursion Pharmaceuticals, amounting to 7.71 million shares, as confirmed by its latest 13-F filing, effective December 31, 2025. This announcement sent shockwaves through the market, causing Recursion”s stock to tumble 14% during Wednesday”s trading session before recovering slightly to close 2% higher.
Initially, Nvidia”s investment in Recursion was seen as a strong endorsement of the company”s innovative approach to drug discovery, leveraging artificial intelligence and extensive biological databases. However, the motives behind Nvidia”s exit were not disclosed, leaving analysts and investors speculating about the implications.
Meanwhile, Cathie Wood and her firm, ARK Invest, took a contrasting approach. On the same day Nvidia announced its departure, ARK Invest purchased 1.25 million shares of Recursion through two of its ETFs. This move reflects ARK”s ongoing commitment to increasing its position in Recursion, which now totals 21.8 million shares valued at approximately $77 million, nearly triple Nvidia”s former investment.
The divergent actions of Nvidia and ARK Invest highlight the differing opinions on Recursion”s future. Currently, only 38% of analysts that cover the stock recommend a buy, which is notably low given that the stock has already seen a decline of 68% over the past year. The average price target for Recursion is set at $7, suggesting a potential upside of approximately 98% from its closing price of $3.54 on Wednesday.
As the market reacts to these developments, investors will be closely monitoring how Recursion Pharmaceuticals navigates the challenges ahead and whether ARK”s bullish stance will pay off in the long run.
