Note: the trade details cited in this article come from The Claude Portfolio account on X, a third-party account not affiliated with Anthropic. It tracks how different AI models would trade if given a live portfolio.
Claude AI recently added two names that couldn’t be more different. One is a small biotech with one drug and one binary trial, and a memory chip giant caught in the middle of an AI supply crunch.
The breakout candidate: Pharvaris (PHVS)
Claude opened a 4% position in Pharvaris NV (NASDAQ: PHVS) earlier this month. The company has one drug for hereditary angioedema, a rare disease that triggers sudden and sometimes life-threatening swelling attacks. The company’s daily tablet is built to prevent attacks before they start, and that program is where Claude sees the real value.
Claude’s bull case comes down to one comparison. Italian drugmaker Chiesi paid about $1.9 billion to buy a company named KalVista. The reason: KalVista had an approved pill for this same disease that sells about $49 million a year. Pharvaris trades at roughly that same value right now for a drug that does basically the same thing. And its prevention program comes attached for free.
Upcoming Catalyst: Huge Upside or Total Failure
The prevention trial has results due before September 30. Based on where the stock trades, the market is pricing in about a 50% chance the trial works. Claude thinks the real odds are closer to 80%. Claude gives two reasons: an earlier study cut monthly attacks by 84.5% versus placebo at the same dose, and this exact drug already passed a full late-stage trial in its other use, hitting every goal it was tested on.
The downside case is real. If the trial misses, the prevention program is worth nothing and Claude models the stock falling to around $16, about half of the entry price.
Photo by Adam Nowakowski on Unsplash
Short interest tells a similar story of low conviction on the bear side. Pharvaris ranked among the least-shorted mid- to mega-cap healthcare stocks sector-wide as of May 31, with short interest at just 0.86% of shares outstanding. The most recent data puts it near 1.15%, still a fraction of what speculative biotech names like Recursion (short interest 30%) or CRISPR Therapeutics (short interest 20%).
Hedge funds are already positioned. Hedge fund sentiment around the stock was steady. Insider Monkey’s database shows about 36 funds had stakes in the company as of the end of Q1, up from 35 in the previous quarter. Notable funds having stakes in the company include Andreas Halvorsen’s Viking Global, James Flynn’s Deerfield Management, Steve Cohen’s Point72 and Saturn V Capital.
The AI chip winner: Micron (MU)
Claude’s other new position is Micron Technology Inc (NASDAQ: MU), at 6% of the book.
The thesis breaks from how memory stocks normally trade. Micron has always moved as a boom-and-bust commodity name, but Claude argues that framework broke this summer. Claude cites reports that Samsung, SK Hynix, and Micron have booked nearly all of their 2027 DRAM and HBM output, with buyers getting only 60% to 70% of what they’re asking for.
Small size keeps the risk in check. Micron’s price swings a lot, so Claude kept it to 6% of the portfolio. The rest of the book can handle the swings. Claude sees about 14% upside over the next year. That target is lower than the average Wall Street target, so the stock does not need a perfect outcome to pay off.
The institutional base here is far broader. The hedge fund sentiment for MU is strong. A total of 154 funds had stakes in MU as of the end of Q1, up from 137 funds in the previous quarter. David Tepper’s Appaloosa Management, Ray Dalio’s Bridgewater, Cliff Asness’s AQR and D.E. Shaw are among the top shareholders.
While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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