These days, AI stocks are all the rage – and with good reason. We believe that as its underlying technology progresses, artificial intelligence will truly change the world over the next few years. And that will lead AI stocks to soar – and mint small fortunes for prescient investors.
Though, if you’re following the mainstream media’s lead, you may be considering the wrong stocks to buy to prepare for this boom.
See; most of the current AI hype has been centered around chipmakers like Nvidia (NVDA) and software companies like Microsoft (MSFT). Those are the AI stocks that CNBC and Bloomberg are writing about. They’re the ones making all the headlines and grabbing most investors’ attention…
But those AI stocks are not the ones that have the real experts in the industry – like the CEO of DeepMind, Google’s AI Business – most excited. And they are certainly not the AI stocks with the most explosive upside potential as the AI Boom rages on.
Rather, that title belongs to a different type of AI stock – in a subsector where a perfect storm is brewing to potentially fuel staggering gains in a short amount of time.
I’m talking about biotech stocks.
Seriously, biotech stocks are on fire right now.
One tiny biotech firm named Corbus Pharmaceuticals (CRBP) is up more than 600% this year already – and we’re not even halfway through the year. Another named JanOne (JANX) is up more than 365%, while Skye Bioscience (SKYE) is up about 320% year-to-date.
Certain biotech stocks are soaring right now. And we think many will only keep rising.
Why? It’s all thanks to the convergence of AI and biotechnology.
AI Meets Biotech: Unlocking Enormous Economic Value
The application of AI in the field of biology could prove to be massively profitable.
We aren’t alone in that thinking. Google DeepMind CEO Demis Hassabis agrees. In fact, he recently said that AI applied to biotechnology has the potential to unlock “enormous economic value.”
What’s driving all this bullishness? Data.
After all, when it comes to the human body, there is no dearth of quality data. In fact, there is more high-quality data than anywhere else on Earth.
That’s because, like computers, humans are really nothing more than a bunch of data strung together.
At their core, computers are just a bunch of 1s and 0s coded in sequence, with each number corresponding to a certain action for the computer to perform. Humans, similarly, are a bunch of As, Gs, Cs, and Ts strung together – or the four base types found in human DNA molecules – with each determining a person’s characteristics, traits, and even actions.
In that sense, the connecting element between humans and computers is data.
That means AI can have an especially profound impact on the human body.
Quality Data Leads to Powerful Results
Of course, what is AI at the end of day? It’s just a machine-learning algorithm using data analysis to learn how to perform certain tasks. That means that ultimately, the quantity and quality of data an AI model has access to determines the quality of that model itself.
And when it comes to the human body, there is no dearth of quality data.
Apply AI to all that data, and you will change the world.
Consider this: It takes about $900 million and 13.5 years to develop a new successful drug.
The drug development process is so expensive and time-consuming that firms cannot afford to push that many drugs forward. This creates a huge shortage in drug candidates and programs relative to what is possible given all the permutations of human biological data.
But AI can significantly shorten and cheapen this process.
It can map out genetic data, identify mutations, and run simulations to find the right compounds and combat those mutations – all almost instantly.
Essentially, researchers can use AI to find new drug candidates much faster than is currently possible.
And this is already happening.
Last year, Japanese pharma giant Takeda Pharmaceutical (TAK) bought an experimental psoriasis drug for $4 billion – a drug that was created in only six months by using AI.
It isn’t alone.
Other pharma giants like Bayer, Roche, Sanofi (SNY) and AstraZeneca (AZN) are actively using AI technology for drug discovery purposes.
Even Nvidia is in this game, partnering with AI biotech startups to develop foundational models for AI-powered drug discovery and development.
The future of medicine starts now. And it’s big business.
The Final Word on AI in Biotech
Research firm Deep Pharma Intelligence estimates that investments in the field of AI-powered drug discovery have tripled over the past four years to nearly $25 billion.
Morgan Stanley believes this tech will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion!
But according to DeepMind’s CEO, even those estimates are conservative
DeepMind is considered one of the leaders in AI-powered drug discovery. Its foundational tool, AlphaFold, leverages AI to predict protein structures. And the firm just launched a new version that can model a range of molecular structures – including DNA and RNA – to predict how they interact with one another. This represents a huge step toward scalable AI-powered drug discovery.
And DeepMind’s CEO hopes to create a multi-hundred-billion-dollar business from AlphaFold.
We think that’s entirely possible.
Global drug sales represent a market that’s running north of $1.5 trillion per year.
We believe that AI-powered drug discovery should disrupt that entire industry. From that perspective, AI-powered drug discovery could one day be a trillion-dollar market.
The time to invest in this emerging, hidden corner of this boom is now.
Per our research, there are two firms outside of DeepMind who are leading the AI Biotech Revolution.
They are world-class firms led by the smartest people in the industry and with the best technology in the game. They are each attacking massive opportunities with very promising development pipelines. And perhaps most importantly, they are backed by the biggest AI companies in the world – Microsoft and Nvidia.
Trust me. These are two stocks you want to know about right now. We’re confident each could soar more than 1,000% over the next few years.
Learn all about these potential biotech behemoths.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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