AI stocks are all the rage these days, and for good reason. We believe that artificial intelligence will truly change the world in the coming years as its underlying technology advances. That, in turn, could send AI stocks soaring, making forward-thinking investors a little richer.
However, if you are following the lead of the mainstream media, you may be considering: wrong stocks to buy To prepare for this boom.
See; most of the current AI hype revolves around chipmakers such as: Nvidia (NVDA) and software companies such as microsoft (MSFT). These are the AI stocks that CNBC and Bloomberg have written about. They make all the headlines and capture the attention of most investors…
However, those AI stocks do not have It's the company that true industry experts are most excited about, including the CEO of DeepMind, Google's AI business.and they certainly not As the AI boom rages on, AI stocks have the most explosive upside potential.
Rather, that title belongs to a different kind of AI stock, a subsector in which a perfect storm is brewing that could deliver incredible returns in the short term.
what i'm talking about is Biotechnology stocks.
In all seriousness, biotech stocks are on fire right now.
A small biotech company named corvus pharmaceuticals (CRBP) is already up more than 600% this year. It's not even half of the year yet.the other person's name Jianwan (junks) has increased by more than 365%; sky bioscience (sky) is up about 320% since the beginning of the year.
Certain biotech stocks are surging right now. And we think many will continue to rise.
why? It's all thanks to the convergence of AI and biotechnology.
AI meets biotechnology: unlocking enormous economic value
The application of AI in the field of biology has the potential to bring enormous benefits.
We're not the only ones who think so. 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 is driving this bullishness? data.
After all, there is no shortage of quality data when it comes to the human body. In fact, there is more high-quality data here than anywhere else on earth.
That's because, like computers, humans are actually just pieces of data strung together.
At its core, a computer is just a bunch of 1's and 0's coded in sequence, with each number corresponding to a specific action the computer performs. Similarly, humans are a bundle of As, G, C, and T, four base types found in a human's DNA molecule, each of which determines a person's characteristics, traits, and even behavior. Masu.
In that sense, data is the element that connects humans and computers.
This means that AI can have particularly serious effects on the human body.
High-quality data drives powerful results
Of course, what is AI after all? It's just a machine learning algorithm that uses data analysis to learn how to perform specific tasks. Ultimately, the amount and quality of data that an AI model has access to will determine the quality of the model itself.
When it comes to the human body, there is no shortage of high-quality data.
Applying AI to all your data will change the world.
Consider this. It takes about $900 million and 13 and a half years to develop a successful new drug.
The drug development process is so expensive and time-consuming that companies can't afford to push that many drugs forward. This leaves a significant dearth of possible drug candidates and programs considering all permutations of human biological data.
However, AI can significantly speed up this process and lower costs.
You can map your genetic data, identify mutations, and run simulations to find the right compounds to address those mutations almost instantly.
Essentially, researchers can use AI to find new drug candidates much faster than they currently can.
And this is already happening.
Last year, Japanese pharmaceutical giant Takeda Pharmaceutical Company (Taku) purchased an experimental psoriasis drug for $4 billion. This drug was created using his AI in just 6 months.
It's not alone.
The same goes for other major pharmaceutical companies. bayer, Roche, sanofi (SNY) and AstraZeneca (AZN) is actively utilizing AI technology for drug discovery purposes.
Nvidia is also in the game, partnering with AI biotech startups to develop fundamental models for AI-powered drug discovery and development.
The future of medicine begins now. And it's big business.
A final word on AI in biotech
Research firm Deep Pharma Intelligence estimates that investment in AI-powered drug discovery has tripled in the past four years to nearly $25 billion.
Morgan Stanley believes this technology will bring 50 additional new treatments to market over the next 10 years, generating annual sales of more than $50 billion.
But even those estimates are conservative, according to DeepMind's CEO.
DeepMind is considered one of the leaders in AI-powered drug discovery. Its foundational tool, AlphaFold, leverages AI to predict protein structures. And the company just announced a new version that can model a variety of molecular structures, including DNA and RNA, and predict how they will interact with each other. This is a major step toward scalable AI-powered drug discovery.
And DeepMind's CEO wants to create a business worth hundreds of billions of dollars from AlphaFold.
We think it's quite possible.
Global pharmaceutical sales represent an annual market of more than $1.5 trillion.
We believe that AI-powered drug discovery should transform the entire industry. From that perspective, AI-powered drug discovery could one day become a trillion-dollar market.
Now is the time to invest in this hidden new corner of the boom.
Our research shows that there are two other companies besides DeepMind that are leading the AI biotech revolution.
They are a world-class company led by some of the smartest people in the industry and equipped with the best technology in the game. They are each taking on big opportunities with very promising development pipelines. And perhaps most importantly, they are backed by the world's largest AI companies, Microsoft and Nvidia.
trust me. Here are two brands you should know about. We're confident each could soar over his 1,000% in the next few years.
Learn all about these potential biotech giants.
On the date of publication, Luke Rango did not have (directly or indirectly) any positions in the securities mentioned in this article.
P.S. Stay up to date with Luke's latest market analysis by reading the Daily Note.Check out the latest issue innovation investor or early stage investors Subscriber site.
