Recursion Pharmaceuticals (NASDAQ:RXRX) shares plunged roughly 12% on Wednesday morning after regulatory filings indicated that NVIDIA (NASDAQ:NVDA) no longer holds any position in the company. The recent 13F filing from NVIDIA showed an absence of any Recursion shares, signaling a complete exit from the previously reported stake of approximately 7.71 million shares.
The semiconductor firm had maintained its investment in the clinical-stage biotech for about two years, according to the filings. That holding had been interpreted by investors as an endorsement of Recursion's AI-driven strategy for identifying therapeutic candidates. The disclosure of a total sale coincided with the steep intraday decline in Recursion's stock price.
Recursion leverages artificial intelligence and machine learning tools to compress elements of the drug development process, combining biological and chemical datasets with computational approaches to surface potential treatment candidates more quickly than traditional, manual methods. The company's technical approach has been a focal point for investor interest, and the presence of a large technology investor was viewed by some as validation of that model.
The filings did not provide clarity on the timing or rationale behind NVIDIA's decision to divest. While the chipmaker had earlier invested in Recursion as part of a broader strategic interest in supporting AI applications across sectors including healthcare and pharmaceuticals, the regulatory documents themselves offered no commentary on the motives for the sale.
The market reaction highlights the sensitivity of small-to-mid-cap biotech stocks to changes in major shareholders. In this instance, the withdrawal of a high-profile backer was followed immediately by weakened investor sentiment and a significant share-price adjustment.
At present, public filings are the only disclosed source of information about the ownership change. Additional details about the sale - including whether it was part of a planned portfolio rebalancing or related to other considerations - were not included in the regulatory submission and remain unknown.
Clear summary
NVIDIA's most recent 13F shows no Recursion position after previously holding about 7.71 million shares for roughly two years. Recursion stock fell about 12% Wednesday morning amid investor concern following the departure of a notable institutional backer. The regulatory filings did not explain the timing or reasons for NVIDIA's exit. Recursion's platform uses AI and machine learning to accelerate drug discovery by integrating biological and chemical datasets.