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Morgan Stanley Eyes Emerging Growth for Grail (GRAL) as Sector Valuations Reach Equilibrium

Grail Inc. (NASDAQ:GRAL) is one of the best emerging technology stocks to invest in. On December 1, Morgan Stanley assumed coverage of Grail with an Equal Weight rating and a price target of $110, which was up from $85. Heading into 2026, the firm is optimistic about the Life Science space, noting several emerging growth drivers. While the firm likes the industry’s long-term setup, it argued that a recent valuation spike has left stock prices at a reasonable equilibrium.

In Q3 2025, Grail highlighted a 26% year-over-year revenue increase to $36.2 million. This growth was driven by the Galleri multi-cancer early detection test, which saw screening revenue rise 29% to $32.8 million. The company sold over 45,000 Galleri tests during the quarter, representing a 39% increase in volume compared to the prior year. Efficiency gains from its high-throughput platform also helped improve non-GAAP adjusted gross margins to 55%, a significant jump from 41% in Q3 2024. Despite the revenue growth, Grail reported a net loss of $89 million for the quarter, though this was a 29% improvement over the previous year.

Clinical milestones during the quarter included positive data from the PATHFINDER 2 and SYMPLIFY studies. Results showed that adding Galleri to standard screenings led to a sevenfold increase in cancer detection rates with a high specificity of 99.6%. Furthermore, long-term follow-up from the SYMPLIFY study increased the test’s positive predictive value to 84.2%, as many initial false positives were later diagnosed with cancer at the site predicted by Galleri. The company also announced a new partnership with Samsung to commercialize the test in South Korea, Japan, and Singapore.

Grail Inc. (NASDAQ:GRAL) is a commercial-stage healthcare company that provides multi-cancer early detection testing and services in the US and internationally.

While we acknowledge the potential of GRAL 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 GRAL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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