Shares of Applied Digital, WeRide, and Recursion Pharmaceuticals experienced declines in after-hours trading Tuesday following Nvidia’s latest 13F filing, revealing the semiconductor giant has reduced its stakes in these companies. The moves signal a recalibration of Nvidia’s investment portfolio, potentially impacting investor sentiment towards these firms, particularly those operating in the rapidly evolving artificial intelligence landscape.
The filing indicates Nvidia exited positions in these companies during the final three months of 2025. While Nvidia’s divestment may raise questions, analysts suggest the changes are part of a broader portfolio adjustment rather than a negative assessment of the companies’ long-term prospects. The news comes amid increased scrutiny of tech investments and a volatile market environment.
Nvidia Reduces Stake in AI-Driven Drug Developer Recursion Pharmaceuticals
Recursion Pharmaceuticals (NASDAQ: RXRX), a clinical-stage biotech company leveraging artificial intelligence in drug discovery, saw its stock dip as Nvidia trimmed its holdings. Recursion’s stock price closed at $3.38, down 0.57% (Sherwood News). Nvidia had previously invested $50 million in approximately 7.7 million shares of Recursion Pharmaceuticals as of June 30, 2025 (The Globe and Mail). The company’s approach combines automated experimentation with machine learning to accelerate the identification of potential drug candidates.
Applied Digital and Nvidia’s Intertwined Interests
Applied Digital (NASDAQ: APLD), a data center operator, also experienced a decline following Nvidia’s reduced position. Nvidia was previously the seventh-largest holder of Applied Digital as of the finish of the third quarter of 2025. However, Nvidia maintains indirect exposure to Applied Digital through its substantial investment in CoreWeave, which acquired warrants in APLD last June. CoreWeave purchases large quantities of Nvidia’s GPUs and leases server time to customers (The Motley Fool).
WeRide and the Shifting Landscape of Autonomous Vehicle Investment
WeRide, a Chinese self-driving firm, also saw its shares affected by Nvidia’s decision to sell its stake. The move reflects a potentially shifting landscape in the autonomous vehicle sector, where investment priorities are constantly being reassessed. Nvidia’s earlier investment in WeRide signaled confidence in the Chinese company’s technological advancements and market potential.
Nvidia’s Broader Portfolio Adjustments
The sale of holdings in these companies occurred alongside Nvidia’s divestment of Arm Holdings. However, this was partially offset by positive developments regarding Arm-based CPUs, which are expected to play a more significant role in data center environments as part of Nvidia’s expanded partnership with Meta (Sherwood News). Nvidia also increased its positions in Nokia, Intel, and Synopsys during the fourth quarter, all of which had been previously announced. Its investments in Coreweave and Nebius remained unchanged from the third quarter.
These portfolio adjustments highlight Nvidia’s dynamic investment strategy, adapting to evolving market conditions and technological advancements. The company continues to prioritize investments in areas critical to the future of AI, including cloud computing, semiconductor design, and data center infrastructure.
Disclaimer: This article provides informational content only and should not be construed as financial or investment advice. Consult with a qualified financial advisor before making any investment decisions.
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