Cathie Wood increases stake in small-cap biotech Recursion after Nvidia exits

ARK Invest, headed by investor Cathie Wood, has increased its stake in small-cap biotech Recursion Pharmaceuticals, which uses one of the world’s most powerful supercomputers to identify patterns and develop therapies for deadly diseases. The news of Wood's purchase helped lift the stock more than 5% on Thursday. Earlier, it emerged that chipmaker Nvidia had exited its position in the company.

Wood's ARK Invest bought 1.25 million shares of Recursion, Barron’s reports. The purchase was valued at about $4.3 million, Investing.com writes. Investors responded positively, with the stock rising 5.4% to $3.70 per share on Thursday.

ARK first became an equity investor in Recursion in the third quarter of 2023 and has increased its position several times since. In the fourth quarter of 2025, it acquired an additional 3.77 million shares, according to filings. By year-end, the investment firm held 37.3 million shares in the biotech. Given approximately 514.2 million shares outstanding, according to MarketWatch data, ARK’s stake stood at about 7.25% as of December 31.

In the fourth quarter, Ken Griffin’s Citadel increased its allocation to the stock, purchasing nearly 2.9 million shares.

By contrast, Nvidia sold its stake of 7.71 million shares of Recursion as of the year-end, according to filed SEC documents.

Recursion develops therapies for cancers and rare diseases. The company relies on AI and a supercomputer it describes as one of the most powerful in the world to analyze large biological and chemical datasets, map disease processes, and identify potential drug candidates. Recursion’s pipeline currently includes four programs in early-stage clinical trials and three in preclinical development (testing on animals).

Recursion shares have fallen nearly 66% in the last 12 months and about 9% year to date. Wall Street remains generally cautious: the stock has five “hold” ratings versus three “buy” ratings, with no “sell” recommendations. The consensus target price is $7 per share, implying roughly 88% upside from the Thursday closing price.