What is AI drug discovery and why is it important?

AI drug discovery uses artificial intelligence and machine learning to accelerate the process of finding and developing new medicines. Traditional drug development can take 10-15 years and cost billions. AI can analyse vast amounts of data to identify promising drug candidates faster, predict how drugs will behave in the body, and optimise clinical trials, potentially reducing costs and bringing treatments to patients sooner.

How does the NVIDIA-Eli Lilly partnership benefit investors?

This $1 billion partnership validates the commercial potential of AI in pharmaceuticals and signals a major industry shift. When leading companies make such significant investments, it often attracts more capital to the sector and can boost valuations of related companies. The partnership also demonstrates that AI drug discovery is moving from experimental to mainstream, creating opportunities across the ecosystem.

What does 'precision medicine' mean?

Precision medicine is an approach that tailors medical treatment to individual patients based on their genetic makeup, lifestyle, and environment. Instead of using a one-size-fits-all approach, doctors can use AI and genetic data to predict which treatments will work best for specific patients, leading to more effective therapies with fewer side effects.

Are AI pharmaceutical stocks risky investments?

Like all investments, AI pharmaceutical stocks carry risks. The technology is still evolving, drug development can fail at various stages, and regulatory approval is never guaranteed. However, the potential rewards are significant as successful AI-driven drug discoveries could generate substantial returns. It's important to diversify your investments and only invest money you can afford to lose.

What is computational biology?

Computational biology uses computer science and mathematics to understand biological processes. In drug discovery, it involves using powerful computers to simulate how drugs interact with the body, predict side effects, and identify the most promising compounds to test. This helps researchers make better decisions about which drugs to develop, saving time and money.

17 handpicked stocks

AI Drug Discovery | Biotech Investment Opportunities

NVIDIA and Eli Lilly have launched a $1 billion AI lab to revolutionize the drug discovery process. This partnership highlights a burgeoning investment opportunity in companies at the intersection of artificial intelligence and biotechnology.

Han Tan | Market Analyst

Published on January 13

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

NVIDIA Corporation

NVDA

Current price

$183.22

Its advanced GPUs and AI platforms provide the essential computational power required for AI-driven drug discovery and genomics.

Eli Lilly and Company

LLY

Current price

$989.12

This major pharmaceutical firm is actively partnering and investing in AI to accelerate and revolutionise its drug discovery process.

Regeneron Pharmaceuticals, Inc.

REGN

Current price

$756.91

Regeneron utilises its proprietary VelociSuite technologies, which integrate large-scale genetic data and automation, aligning with AI-driven approach...

Regeneron utilises its proprietary VelociSuite technologies, which integrate large-scale genetic data and automation, aligning with AI-driven approaches to accelerate drug development.

Biogen Inc.

BIIB

Current price

$183.26

Novartis AG

NVS

Current price

$154.87

Alnylam Pharmaceuticals, Inc.

ALNY

Current price

$318.91

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Your Basket's Financial Footprint

This basket's total market cap is 5,994,886.71147 and its value is heavily concentrated in a few very large-cap holdings that anchor the portfolio. Roughly 92% of the total market cap sits in the two largest positions, indicating a top-heavy weighting that tends to reduce volatility but limits diversification.

Key Takeaways for Investors:

Large-cap dominance suggests generally lower volatility and closer tracking of broad markets, implying more stable returns.
Suitable as a core, long-term portfolio holding rather than for speculative, short-term high-growth bets.
Expect steady, long-term appreciation rather than rapid, explosive gains; growth will likely be more measured.

Total Market Cap

NVDA: $4.49T
LLY: $1.02T
REGN: $80.72B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitiv Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+140.85%

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About This Group of Stocks

Our Expert Thinking

The $1 billion NVIDIA and Eli Lilly partnership marks a pivotal moment where artificial intelligence meets pharmaceutical innovation. This collaboration signals that AI is becoming fundamental to modern drug discovery, creating opportunities for companies that can harness computational power to accelerate medical breakthroughs and transform healthcare outcomes.

What You Need to Know

This group spans from technology giants providing AI infrastructure to biotech innovators using machine learning for drug development. These companies represent a high-growth sector where computational biology, precision medicine, and automated analysis are revolutionising how we discover and develop new treatments for complex diseases.

Why These Stocks

Each company has been handpicked by professional analysts for their strategic position at the intersection of AI and healthcare. They range from established pharmaceutical leaders actively investing in AI capabilities to emerging specialists using proprietary platforms to solve complex therapeutic challenges through computational innovation.

Group Performance Snapshot

140.85%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 140.85% over the next year.

15 of 16

Stocks Rated Buy by Analysts

15 of 16 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

Billion-Dollar Catalyst

The NVIDIA-Eli Lilly $1 billion partnership is already setting new industry standards, potentially triggering a wave of similar high-value collaborations across the sector.

🧬

AI Meets Medicine

These companies are at the forefront of using artificial intelligence to solve healthcare's biggest challenges, from drug discovery to personalised treatments.

⭐

First-Mover Advantage

Early investors in AI-powered healthcare could benefit as this technology transforms how we develop medicines and treat diseases worldwide.

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AI Drug Discovery | Biotech Investment Opportunities

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks