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.
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 (NASDAQ:BNTX) 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 (NASDAQ:BNTX) 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. (NASDAQ:TYRA) 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. (NASDAQ:TYRA) 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. (NASDAQ:ADMA) 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. (NASDAQ:ADMA) 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.
While we acknowledge the potential of ADMA 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 ADMA and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the Top 5 AI-Powered Biotech Stocks to Buy Right Now.
Disclosure: None. Follow Insider Monkey on Google News.
