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

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1. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 132

Eli Lilly and Company (NYSE:LLY) is among the Best Pharmaceutical Stocks.

On June 5, Eli Lilly and Company (NYSE:LLY) CEO David Ricks said on The Prof G Pod that GLP-1 drugs “will turn out to be a more transformative technology than artificial intelligence.” He called artificial intelligence “overhyped” and GLP-1s “underhyped,” according to the interview.

Ricks said GLP-1 drugs “work almost universally,” with most users losing weight and reporting positive experiences, unlike many chronic treatments where patients “feel worse or poorer without feeling better.”

He described obesity as a “nodal” condition with over 200 diseases. He also commented that US chronic diseases account for 80% of healthcare costs, and roughly $1.4 trillion annually relates to obesity.

Ricks said lower pricing increases demand since Zepbound fell 60% since its launch, calling it “price-elastic.” He stated that Medicare access at $50 monthly starting July 1 could expand reach.

On AI, Ricks said drug discovery needs “new knowledge.” Lilly tested roughly 700 molecule versions to develop tirzepatide.

Eli Lilly and Company (NYSE:LLY) works in the discovery, development, manufacture, and sale of pharmaceutical products. The company’s products include diabetes, oncology, immunology, neuroscience, and other products and therapies.

While we acknowledge the potential of LLY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 20 Best Performing Stocks in 2025 and 12 Best Food Stocks to Buy in 2026.

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