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. 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. 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 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 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.
8. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 29
BioNTech SE (NASDAQ:BNTX) is among the best biotech stocks.
TheFly reported on April 10 that Morgan Stanley slightly increased its price target on BNTX from $125 to $126 while maintaining an Overweight rating. The adjustment was part of broader updates across its biopharma coverage, incorporating recent industry data trends from IQVIA and incorporating intra-quarter performance indicators ahead of first-quarter earnings across the sector.
Moreover, on April 12, BioNTech SE and its partner DualityBio reported positive findings from a Phase 2 cohort evaluating trastuzumab pamirtecan (BNT323/DB-1303), an antibody-drug conjugate targeting HER2-expressing advanced endometrial cancer. The study included patients whose disease had progressed after prior chemotherapy, with or without checkpoint inhibitor therapy, as part of a broader early- and mid-stage clinical program across multiple solid tumors.
Results showed meaningful anti-tumor activity, with confirmed responses observed across different levels of HER2 expression and consistent outcomes regardless of prior immunotherapy exposure. The treatment demonstrated a manageable safety profile. In a key efficacy measure, the cohort met its primary endpoint, showing a confirmed objective response rate of 49.3% in previously checkpoint-treated patients and 47.9% overall, along with a median progression-free survival of 8.1 months. The data were scheduled for presentation at a major oncology meeting.
BioNTech SE is an AI-driven biotechnology company focused on next-generation immunotherapies, including mRNA, antibody-drug conjugates, and cell therapies for cancer and infectious diseases. It integrates advanced AI and supercomputing across drug discovery, clinical development, and manufacturing to accelerate innovation.
7. Tyra Biosciences, Inc. (NASDAQ:TYRA)
Number of Hedge Fund Holders: 29
Tyra Biosciences, Inc. (NASDAQ:TYRA) is one of the best biotech stocks on this list.
TheFly reported on April 15 that Guggenheim Securities initiated coverage of TYRA with a Buy rating and set a price target of $54. The firm highlighted the company’s lead drug candidate, dabogratinib, as a promising asset positioned to evaluate multiple clinical hypotheses across distinct patient groups. It noted that successful outcomes in even one of these settings could create meaningful upside potential for the stock. The analysis also suggested that the therapy may show utility at lower dosing levels across several disease areas, supporting its broader development potential in different indications.
In a significant operational development, on April 17, Tyra Biosciences, Inc. announced the addition of Habib Dable to its Board of Directors. He brings over three decades of experience in the global biopharmaceutical industry, including leadership roles focused on building and scaling major specialty medicine franchises and guiding companies through periods of significant growth.
His background includes senior executive positions at Bayer and service as CEO of Acceleron Pharma, where he oversaw substantial expansion leading up to its acquisition by Merck. The company emphasized that his expertise in global product strategy and commercialization will support the advancement of its FGFR3-targeted pipeline, including dabogratinib, as it moves toward broader clinical and commercial development.
Tyra Biosciences, Inc. is an AI-enabled precision biotechnology company focused on FGFR-targeted therapies for cancer and genetic diseases. It uses its SNÅP platform to accelerate drug design and develop therapies for oncology and FGFR-driven conditions.
6. ADMA Biologics, Inc. (NASDAQ:ADMA)
Number of Hedge Fund Holders: 38
ADMA Biologics, Inc. (NASDAQ:ADMA) is one of the best biotech stocks to invest in.
TheFly reported on April 21 that Canaccord Genuity initiated coverage of ADMA with a Buy rating and set a price target of $21. The firm highlighted an attractive risk-reward profile at current valuation levels. It noted that recent weakness in the stock has been driven by investor concerns over revenue recognition and the underlying demand trends for the company’s primary IVIG therapy, Asceniv. However, management commentary, along with positive feedback from key clinical stakeholders, was viewed as supportive of continued revenue growth and improving profitability trends going forward.
Linked to that, on March 27, ADMA Biologics, Inc. issued a detailed response addressing claims made in a recent short-seller report, stating that the allegations were misleading and not supported by its operational and commercial data. The company emphasized that demand for its immune globulin products, including ASCENIV, continues to grow based on information from distributors and direct customers, with inventory and usage patterns indicating ongoing product pull-through rather than channel distortion.
ADMA also explained that distributor stocking levels reflect standard industry practices to ensure supply continuity for immunocompromised patients and maintain cold-chain stability. Additionally, the company reiterated that its financial reporting has received unqualified audit opinions for fiscal years 2024 and 2025 and confirmed compliance with accounting standards and internal control requirements, while denying any improper related-party transactions.
ADMA Biologics, Inc. is an AI-enabled biopharmaceutical company specializing in plasma-derived therapies for immune deficiencies and infectious diseases. It uses its ADMAlytics platform to optimize plasma collection, manufacturing efficiency, and supply chain operations through data analytics and machine learning.
5. Kymera Therapeutics, Inc. (NASDAQ:KYMR)
Number of Hedge Fund Holders: 39
Kymera Therapeutics, Inc. (NASDAQ:KYMR) is among the best biotech stocks.
TheFly reported on April 13 that KYMR announced that the U.S. Food and Drug Administration granted Fast Track designation to KT-621, its first-in-class oral STAT6 degrader being developed for moderate to severe eosinophilic asthma. The investigational once-daily oral therapy is currently in ongoing Phase 2b clinical studies evaluating its potential in asthma and other Type 2 inflammatory conditions.
Early clinical and preclinical data have shown reductions in key inflammatory biomarkers and improvements in disease control measures, supporting its mechanism of action. The designation is intended to facilitate closer regulatory engagement and may help accelerate development timelines for the program as it advances toward later-stage trials.
Further reinforcing the company’s operational momentum, on April 9, Gilead Sciences exercised its option under a collaboration agreement to obtain exclusive global rights to KT-200, a first-in-class oral CDK2 molecular glue degrader developed by Kymera Therapeutics, Inc.. The decision advances the program toward IND-enabling studies, with a planned IND filing targeted for 2027.
As part of the transaction, KYMR is set to receive a $45 million milestone payment and remains eligible for additional future milestone payments and tiered royalties on potential commercial sales. KT-200 is designed to selectively degrade CDK2, a key driver of tumor growth, offering a differentiated approach for cancers driven by CCNE1 alterations, supported by strong preclinical activity and a favorable safety profile.
Kymera Therapeutics, Inc. is an AI-driven biotechnology company developing targeted protein degradation therapies for cancer and immune-inflammatory diseases. It uses computational drug discovery to design small-molecule drugs that eliminate disease-causing proteins instead of inhibiting them.
4. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
Number of Hedge Fund Holders: 40
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is among the best biotech stocks to invest in.
TheFly reported on April 14 that Wedbush Securities increased its price target on IDYA from $52 to $58 while maintaining an Outperform rating. The update followed the company’s release of top-line results from its Phase 2/3 OptimUM-02 clinical trial. Management reported that safety outcomes remain consistent with earlier studies, with adverse events generally manageable. The firm also noted that additional detailed findings from the study are expected to be shared at a major medical conference in 2026, which could provide further clarity on the program’s clinical profile and future development potential.
Adding to the company’s operational momentum, on April 6, IDEAYA Biosciences, Inc. reported that it has begun patient enrollment in a Phase 1 dose-escalation study of IDE574, a first-in-class oral small-molecule therapy designed to inhibit KAT6 and KAT7, two epigenetic targets involved in cancer cell survival.
The early-stage trial will assess safety, pharmacokinetics, and preliminary anti-tumor activity as a monotherapy in patients with advanced solid tumors, including breast, prostate, colorectal, and lung cancers. The program is intended to evaluate a novel dual-mechanism approach aimed at overcoming resistance pathways in oncology and expanding treatment options in multiple high-need cancer indications through epigenetic modulation strategies.
IDEAYA Biosciences, Inc. is an AI-driven precision oncology company focused on synthetic lethality-based cancer therapies. It uses machine learning and physics-based drug discovery to develop first-in-class targeted cancer treatments guided by molecular diagnostics.
3. Caris Life Sciences, Inc. (NASDAQ:CAI)
Number of Hedge Fund Holders: 44
Caris Life Sciences, Inc. (NASDAQ:CAI) is among the best biotech stocks.
TheFly reported on April 10 that Piper Sandler began coverage of CAI with a Neutral rating and a $21 price target. The firm highlighted the company’s combination of strong scientific capabilities and relatively stable financial profile compared to many peers in the space. It projected revenue growth of around 20% over the next few years but indicated that further acceleration in therapy selection services, potentially driven by Salesforce expansion or new product offerings, would be needed before adopting a more positive stance on the stock.
In a significant operational development, on April 1, Caris Life Sciences, Inc. introduced Caris ChromoSeq, a new genomic testing platform combining whole genome and whole transcriptome sequencing to evaluate myeloid cancers. The assay is designed for conditions such as acute myeloid leukemia, myelodysplastic syndromes, and myeloproliferative neoplasms, as well as cases with persistent unexplained cytopenia.
It enables comprehensive detection of mutations, structural changes, and chromosomal abnormalities through a single test, reducing the need for multiple diagnostic procedures. The platform delivers in-depth genomic data and integrates findings into a unified report, supporting faster and more informed clinical decisions. Results are expected within approximately seven days, improving efficiency in patient care.
Caris Life Sciences, Inc. is an AI-driven precision medicine company that uses large-scale clinico-genomic data and molecular profiling to guide cancer diagnosis and treatment. Its platforms apply machine learning to predict therapy response and improve personalized oncology outcomes.
2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 64
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is among the best biotech stocks to invest in.
TheFly reported on April 7 that RBC Capital Markets slightly increased its price target on VRTX from $541 to $543 while maintaining an Outperform rating. The revision was part of a broader biotech sector preview ahead of first-quarter earnings. The firm noted that near-term performance could face pressure from seasonal factors such as reimbursement resets, fewer selling days, and weather-related disruptions, particularly affecting newer and clinic-based products. However, it also highlighted that renewed merger and acquisition activity and clearer expectations around pricing policies could help stabilize sentiment and support the sector despite ongoing macroeconomic uncertainty.
A major operational milestone was announced by the company on April 1. Vertex Pharmaceuticals Incorporated announced that it received expanded approval from the U.S. Food and Drug Administration for ALYFTREK, widening its use in treating cystic fibrosis for patients aged 6 and older with eligible CFTR gene variants. The update also broadened the indication for TRIKAFTA, extending treatment access to younger patients and additional genetic variants.
The decision was supported by extensive clinical and laboratory evidence across hundreds of CFTR mutations, significantly increasing the number of individuals eligible for therapy. This expansion allows a larger portion of the cystic fibrosis population in the United States to receive treatment targeting the underlying cause of the disease.
Vertex Pharmaceuticals Incorporated is a leading biotech company integrating AI and machine learning across drug discovery and development. It uses data-driven platforms to accelerate small molecule, gene-editing, and cell therapy programs for diseases like cystic fibrosis, kidney disease, diabetes, and pain.
1. Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 75
Insmed Incorporated (NASDAQ:INSM) is one of the best biotech stocks.
TheFly reported on April 16 that Guggenheim Securities increased its price target on INSM from $227 to $230 while maintaining a Buy rating. The adjustment was made within a broader first-quarter earnings preview covering commercial-stage biotechnology companies. The firm updated its financial assumptions across the coverage group as part of its model revisions ahead of upcoming quarterly results.
Separately, earlier on April 14, RBC Capital Markets increased its price target on Insmed Incorporated from $212 to $216 while maintaining an Outperform rating. The update incorporated findings from a physician survey assessing early real-world experience with Brinsupri and expectations for future prescribing behavior. Responses indicated favorable perceptions of the drug’s clinical profile and a willingness among physicians to increase its use over time. The research also suggested that the population of patients considered eligible for treatment may expand significantly, supporting a more optimistic outlook on the product’s longer-term commercial opportunity.
Insmed Incorporated is an AI-enabled biopharmaceutical company focused on rare diseases and gene therapies. It integrates machine learning and Google Cloud AI to accelerate drug discovery, optimize protein engineering, and improve clinical development efficiency for serious respiratory and genetic disorders.
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