Nvidia Dumped Recursion Prescription drugs Inventory. Ought to You?

When synthetic intelligence (AI) chip maker NVIDIA Company (NVDA) heads for the exit, buyers instinctively look on the door. In its newest 13F submitting, the chip big disclosed that it had utterly exited its place within the AI-driven drug developer Recursion Prescription drugs (RXRX).

On the finish of Q3 2025, Nvidia held 7.71 million shares. The stake represented a modest slice of its expansive, meticulously managed AI portfolio. Nonetheless, the headline carried weight. Merchants pushed the inventory down as a lot as 14% throughout the session earlier than consumers regrouped and lifted it to a practically 2% acquire by the shut of Wednesday, Feb 18.

But Nvidia’s determination didn’t set off a stampede for the exits. Shortly after the disclosure, Cathie Wooden stepped in. ARK Make investments (ARKK) bought 1.25 million shares of Recursion throughout two ETFs, including to a place it had steadily inbuilt latest months. She noticed alternative the place others noticed uncertainty.

The distinction couldn’t look clearer. Nvidia redeployed capital whereas ARK gathered shares. One AI heavyweight stepped apart whereas one other has pressed ahead. So, allow us to study which stance makes essentially the most sense on the inventory.

Headquartered in Salt Lake Metropolis, Utah, Recursion Prescription drugs is a clinical-stage biotechnology firm that industrializes drug discovery by integrating biology, chemistry, automation, knowledge science, and engineering. With a market cap of roughly $1.8 billion, it advances a number of therapies throughout oncology, uncommon ailments, and infectious circumstances.

Nevertheless, the market has proven little endurance. Over the previous 52 weeks, RXRX inventory has fallen 66.1%. Over the past six months alone, it has dropped 27.6%.

Valuation provides one other layer to the talk. RXRX inventory is presently buying and selling at 29.82 occasions gross sales, a a number of that stands above the trade common and indicators a premium.

On Nov. 5, 2025, Recursion reported its Q3 fiscal 2025 outcomes, whereby the corporate generated $5.2 million in income, marking an 80.2% year-over-year (YOY) decline and falling nicely in need of the $16.98 million which analysts had anticipated.