In this article, we will be taking a look at the Top 10 AI-Powered Biotech Stocks to Buy Right Now.
Franklin Equity reported on February 16 that, following a protracted period of uncertainty in the previous year, the biotechnology sector has entered 2026 on a firmer and more stable foundation. The company claims that a number of significant policy issues have subsided, including the postponement or reduction of proposed pharmaceutical tariffs and the limitation of “most-favored-nation” (MFN) pricing proposals to certain Medicaid-focused reforms. As a result, investors now have more insight into the direction of trade and reimbursement policy, allowing the market to return its focus to the fundamentals.
According to Franklin Equity, investors may now focus on long-term wealth creation and scientific innovation because capital market conditions and policy are more clearly defined, even though macroeconomic, price, and regulatory issues are still there. Major advancements in RNA-based medications, gene and cell therapies, radiopharmaceuticals, antibody drug conjugates (ADCs), and other next-generation biologics support biotechnology innovation, and this continues to be the primary engine of business expansion.
These developments are expanding the range of conditions that can be treated and improving long-term industry potential, especially in oncology, neurology, obesity, rare disorders, and cardiovascular medicine. Precision methods, including tailored immune therapy and radioligand therapies designed to increase efficacy while lowering side effects, are becoming more and more important in cancer pipelines.
Furthermore, J.P. Morgan had said on February 5 that in 2026, a spike in mergers and acquisitions will generate fresh interest in healthcare. This development is mostly due to the approaching wave of pharmaceutical patent expirations, which are expected to impact $200 billion in drug revenue by 2030.
As a result of that, giant pharmaceutical companies have actively been looking for deals so they could strengthen pipelines and offset possible revenue losses that are brought on by generic competition. Additionally, investor enthusiasm is also growing, especially for smaller biotech firms that combine biotechnology with advancements in digital health and have strong trial pipelines and intriguing development prospects.
The CEO of Casdin Capital, Eli Casdin, said that more than $225 billion in M&A activity has contributed to pricing stability and characterized the current climate as a minor halt in an otherwise robust industry cycle. Investors are now looking for the next wave of discoveries, he continued, as artificial intelligence continues to boost productivity and creativity in drug development, supporting rather than displacing fundamental scientific discoveries.
With that said, let’s take a look at the best biotech stocks.
Our Methodology
For our methodology, we manually identified biotech stocks that actively use AI or incorporate it into their drug development processes. From this list, we selected the top 10 stocks with recent news and developments and ranked them in ascending order based on their total number of hedge fund holdings as of Q4 2025, as tracked by the Insider Monkey database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Here is our list of the top 10 AI-powered biotech stocks to buy now.
10. ImmunityBio, Inc. (NASDAQ:IBRX)
Number of Hedge Fund Holders: 19
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the best biotech stocks on our list.
TheFly reported on April 21 that ImmunityBio, Inc. (NASDAQ:IBRX) announced that its immunotherapy ANKTIVA has begun commercial availability in Saudi Arabia, with initial patients already identified for treatment. The therapy is being used in approved indications, including bladder cancer, in combination with Bacillus Calmette-Guérin for adults with BCG-unresponsive non-muscle invasive disease, as well as in metastatic non-small cell lung cancer when combined with an immune checkpoint inhibitor.
Both uses have been authorized by the Saudi Food and Drug Authority. Distribution in the region is being handled through partnerships with Biopharma and Cigalah Healthcare, supported by the company’s local Saudi subsidiary. The launch marks an expansion of access to ANKTIVA across the Middle East, advancing its presence in oncology care settings.
Separately, earlier on March 31, IBRX announced it had strengthened its financial position by securing $75 million in non-dilutive funding through an amended royalty interest agreement with Oberland Capital, increasing total committed capital under the arrangement to $375 million.
The updated structure keeps existing terms largely intact while slightly adjusting the royalty repayment rate, while preserving the overall cap. In a related transaction, $25 million of principal was converted by Nant Capital, an affiliated entity, resulting in the issuance of approximately 4.6 million shares and a reduction in outstanding debt under a prior promissory note.
ImmunityBio, Inc. (NASDAQ:IBRX) is a San Diego-based, AI-driven biotechnology company developing next-generation immunotherapies for cancer and infectious diseases. It uses advanced platforms and cell therapies to activate the immune system, with FDA-approved Anktiva marking its transition into a commercial-stage biotech firm.
9. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is among the best biotech stocks.
TheFly reported on April 22 that The Goldman Sachs Group raised its rating on GMAB from Neutral to Buy and set a price target of $30.50. The upgrade reflected expectations of a catalyst-heavy 2026, supported by renewed assessment of key pipeline assets including Epkinly, Rina-S, and petosemtamab. The firm highlighted combined peak sales potential exceeding $5 billion across these programs, supporting a more favorable risk-reward profile. While acknowledging that the expiration of Darzalex royalty revenues is likely to weigh on growth beginning in 2029, it noted that this impact is already largely incorporated into current valuation levels.
In the first quarter of 2026, Genmab A/S (NASDAQ:GMAB) reported that global net product sales of DARZALEX (daratumumab), including both intravenous and subcutaneous formulations, totaled $3.964 billion, as disclosed by Johnson & Johnson. Sales were split between $2.208 billion in the United States and $1.756 billion across international markets.
GMAB earns royalty income from worldwide DARZALEX sales under its licensing agreement, granting J&J exclusive rights to develop and commercialize the therapy. The strong quarterly performance underscores continued demand for the multiple myeloma treatment across key regions and contributes directly to Genmab’s royalty revenue stream.
Genmab A/S (NASDAQ:GMAB) is a Denmark-based AI-driven biotechnology company focused on developing antibody-based cancer therapies. It uses advanced AI across drug discovery and clinical development to accelerate research, improve precision, and streamline biotech operations.
