Artificial Intelligence Is Reshaping Biotech Stocks: A Deeper Look at Three Investment Prospects

The convergence of artificial intelligence and biotechnology represents one of the most compelling investment themes emerging in the life sciences sector. Beyond traditional industry drivers, AI has begun fundamentally altering how drug discovery unfolds, dramatically compressing development timelines and improving therapeutic success rates. For investors seeking exposure to this transformation, several leading biotech stocks are positioning themselves at the forefront of this technological revolution. Here’s a closer examination of three companies leveraging AI to potentially unlock significant shareholder value.

AbbVie: Streamlining Drug Development Through AI Infrastructure

AbbVie stands as a dominant force in biopharmaceutical innovation, commanding a diverse therapeutic portfolio anchored by strength in immunology while expanding its oncology and neuroscience capabilities. Recent financial performance has validated the company’s strategic direction. Buoyed by robust demand for flagship autoimmune treatments Skyrizi and Rinvoq—positioned as evolutionary improvements over the legacy Humira franchise—the company delivered earnings that exceeded Wall Street expectations.

Management’s confidence is reflected in ambitious 2025 guidance, projecting adjusted earnings per share between $12.12 and $12.32, representing approximately 21% growth from the prior year. What truly distinguishes AbbVie, however, is its dedicated AI initiative centered on the AbbVie Research and Development Convergence Hub (ARCH). This sophisticated platform enables researchers to harness large-scale datasets, identify promising drug candidates, and optimize molecular structures through machine learning algorithms. By embedding AI throughout the R&D workflow, the company targets collapsing the traditional 10-to-15-year pharmaceutical development cycle into a fraction of that timeframe. Such acceleration could deliver multiple new therapies to market more rapidly, creating sustained momentum for biotech investors.

Gilead Sciences: Blending Track Record with AI-Driven Partnerships

Gilead Sciences exemplifies the virtues of consistent execution in biotechnology. The stock has appreciated 26% over the prior 12 months, reaching valuations not seen in nearly a decade, reflecting investor confidence in the company’s competitive positioning. Globally recognized for leadership in antiviral therapies—particularly in HIV and hepatitis C treatment—Gilead is simultaneously diversifying into oncology and rare liver diseases.

The company’s third-quarter financial performance reinforced this growth narrative, with revenue and earnings surpassing analyst expectations. Most notably, Livdelzi, treating the debilitating primary biliary cholangitis, has gained meaningful market traction. Looking ahead to 2025, Gilead’s pipeline includes multiple late-stage clinical programs with anticipated data readouts, suggesting continued catalysts for biotech shareholders.

Perhaps more significantly, the company is strategically expanding its AI capabilities. Recent collaborations with Cognizant focus on developing customized generative AI solutions designed to enhance operational efficiency across the enterprise. Additionally, Gilead has partnered with Terray Therapeutics to access the firm’s proprietary “tNova” AI-driven drug discovery platform, securing exclusive commercialization rights to products emerging from this partnership. These initiatives position Gilead to sustain competitive advantages within the rapidly evolving biotech landscape while maintaining its impressive execution track record.

Moderna: An AI-Powered Turnaround in the Making

In contrast to the aforementioned biotech stocks, Moderna presents a distinct risk-reward profile. Having pioneered mRNA vaccine technology, the company has faced significant headwinds as COVID-19 immunization demand has contracted sharply. Market skepticism regarding Moderna’s ability to translate platform success into new blockbuster therapies culminated in a steep 64% decline in share price over the prior year—presenting what some investors perceive as an attractive entry point for a potential recovery.

Management is actively addressing these concerns through an ambitious clinical agenda. The company is advancing vaccine candidates targeting norovirus and cytomegalovirus (CMV), while the U.S. government provided a $590 million award to complete late-stage development of an H5N1 avian influenza vaccine. Most ambitiously, Moderna has committed to securing 10 new regulatory approvals within three years, with artificial intelligence playing a central enabling role in achieving this target.

To execute this vision, Moderna is constructing a comprehensive digital ecosystem and cloud-native infrastructure, partnering with technology leaders including OpenAI and IBM to embed AI across its entire value chain. By scaling mRNA capabilities through machine learning and automation, the company aims to fundamentally reinvent its operational efficiency and time-to-market. For investors who believe Moderna can successfully execute this transformation, the current valuation may represent a compelling opportunity to establish a long-term position in a biotech leader at a depressed price point.

The Broader Implications for Biotech Stock Investors

The integration of artificial intelligence throughout the biotechnology sector signals a fundamental restructuring of drug development economics. Companies demonstrating tangible progress in deploying AI to compress development timelines, reduce failure rates, and lower R&D expenditures will likely capture disproportionate value creation. These three biotech stocks—spanning different life-cycle stages, therapeutic focuses, and strategic positions—collectively illustrate how AI adoption is reshaping investment opportunities within pharmaceutical innovation. Whether seeking mature dividend-generating businesses, recovery plays, or growth-oriented bets, investors navigating this AI-driven biotech landscape have meaningful options to evaluate.