Recursion Pharmaceuticals (RXRX) Sees Volatility as Nvidia Exits and ARK Invest Doubles Down

Nvidia's complete divestment of its 7.71 million share position in Recursion Pharmaceuticals sent shockwaves through the market, triggering a 14% intraday swing before shares recovered. The chipmaker's exit, disclosed in its 13-F filing, marked the end of a two-year partnership that began as part of Nvidia's AI healthcare initiatives.

ARK Invest seized the opportunity, acquiring 1.25 million shares across two ETFs on the same day. Cathie Wood's firm now holds 21.8 million RXRX shares worth $77 million in its Innovation ETF alone, demonstrating conviction in Recursion's AI-driven drug discovery platform despite only 38% analyst buy ratings.

Recursion's technology combines machine learning with biological datasets to accelerate pharmaceutical development—a premise that initially attracted Nvidia's strategic investment. The stock's dramatic recovery from its lows suggests the market may be reevaluating the company's standalone potential beyond its former marquee investor.