8 AI Drug Discovery and Manufacturing Stocks to Consider

Artificial intelligence (AI) is making significant strides in various commercial sectors, particularly in drug discovery and development. Many experts believe that AI's influence in this field could be transformative.

Goldman Sachs estimates that advancements in AI for drug discovery could contribute between 0.5% to 2.5% to the U.S. gross domestic product (GDP). Meanwhile, McKinsey & Co. highlights the potential for AI to enhance efficiency by 30% in the pharmaceutical industry, leading to financial benefits of up to $110 billion per year.

A report from the Deloitte Center for Health Solutions reveals that about 75% of healthcare organizations are either currently using or plan to adopt generative AI technologies.

Companies engaged in drug discovery are leveraging sophisticated AI technologies and algorithms to enhance their research, design, and testing processes. These technologies also help optimize supply chain operations, facilitating faster market entries for new products.

Moreover, drug researchers have discovered that AI can help inform and solidify drug development decisions, resulting in the timely delivery of effective medications to patients.

With so much potential on the horizon, investors might wonder which companies in this space are well-positioned for growth. Here are eight noteworthy stocks to consider for 2025:

Bristol-Myers Squibb Co. (BMY)

Currently, Bristol-Myers Squibb is facing challenges, with its stock down for the year despite offering a solid dividend yield of 4.2%. The downturn is attributed to the underperformance of some of its drugs, particularly its skin cancer medication, Opdualag. Nevertheless, the company asserts that AI is central to its drug discovery and development efforts, stating that it is integrating AI across various business functions to drive innovation.

Eli Lilly and Co. (LLY)

Eli Lilly's stock has seen a modest rise, outperforming the S&P 500 index. While its drugs for obesity and diabetes have generated substantial revenue, the figures fell short of analysts' expectations, signaling potential concerns. The company is heavily investing in AI to enhance its research and development capabilities, and analysts remain bullish on its stock, with a target price set significantly higher than the current trading price.

AbCellera Biologics Inc. (ABCL)

AbCellera, based in Vancouver, Canada, has experienced a sharp decline in its stock price recently. However, the company maintains a healthy financial status, with significant cash reserves. AbCellera is poised to benefit from AI applications that streamline the drug discovery process, making it a potential buy for investors looking for opportunities in biotechnology.

Super Micro Computer Inc. (SMCI)

This tech firm has rebounded nicely, recording significant stock appreciation. Super Micro has ambitious revenue goals and is positioned to gain from its relationship with Nvidia, which enhances its AI offerings. Despite facing regulatory challenges in the past, the company's growth trajectory appears promising.

Novartis AG (NVS)

Novartis is showing strong performance in 2025, with a notable stock price increase and a good dividend yield. The company made headlines with its acquisition of Anthos Therapeutics, which has received positive feedback for its pipeline of drugs. Furthermore, Novartis has adopted AI for drug development and established an AI innovation lab to accelerate its research efforts.

Schrodinger Inc. (SDGR)

Schrodinger has gained attention due to its recent software agreement with Novartis, which will utilize its AI-powered tools for pharmaceutical development. The company has a positive outlook from market analysts, with many recommending a 'buy' on its stock based on future performance predictions.

Pfizer Inc. (PFE)

While Pfizer has seen a slight decline in its stock this year, the company continues to expand its drug portfolio, with recent FDA approvals for new cancer treatments. Pfizer is also taking strides in AI, having a long-standing partnership to develop AI-based solutions for drug discovery, which could enhance its innovation capabilities.

Absci Corp. (ABSI)

Absci has kicked off the year positively, announcing collaborations to leverage AI for drug development. Its stocks have appreciated, particularly after receiving attention from well-known investors. Analysts view Absci as a promising candidate in the biotech space.

Investing in AI-focused companies in the drug discovery and manufacturing sector may present interesting opportunities for future growth as the integration of technology continues to revolutionize healthcare.

AI, Health, Stocks, Biotech, Pharmaceuticals