12 Best AI Drug Discovery Stocks Hedge Funds Are Loading Up On

8. Schrödinger, Inc. (NASDAQ:SDGR)

Number of Hedge Fund Holders: 31

Schrödinger, Inc. (NASDAQ:SDGR) is among the Best Pharmaceutical Stocks.

On May 14, Morgan Stanley lowered its price target on Schrödinger, Inc. (NASDAQ:SDGR) to $17 from $19. The firm maintained an “Equal Weight” rating on the shares.

Separately, Schrödinger, Inc. (NASDAQ:SDGR) maintained full-year guidance for ACV of $218 million to $228 million. The corporation expects 10% to 15% growth over 2025, while projecting drug discovery revenue of $55 million to $65 million and operating expenses below 2025 levels.

The company guided second quarter 2026 ACV at $19 million to $23 million as compared to $23.3 million in the prior-year period, which included $5.0 million of contribution ACV.

Separately, the corporation also announced plans for an early access release of its artificial intelligence co-scientist “Bunsen” this summer. The firm described it as an agentic system that autonomously executes molecular discovery workflows and is already used internally throughout research programs.

Schrödinger, Inc. (NASDAQ:SDGR) works in the provision of chemical simulation software solutions to the pharmaceutical industry. It functions through the Software and Drug Discovery business segments.