8 AI Drug Discovery and Manufacturing Stocks to Buy

Artificial intelligence (AI) is having a tremendous impact in various commercial sectors, and its influence is particularly significant in drug discovery. Recently, experts have highlighted the potential economic contributions of AI technologies in pharmaceuticals.

— Goldman Sachs has projected that AI advancements in drug discovery and innovations like gene editing could contribute 0.5% to 2.5% to the U.S. gross domestic product.

— Similarly, McKinsey & Co. reports that AI might achieve 30% efficiency improvements and cost reductions in pharmaceuticals, leading to financial benefits of up to $110 billion annually.

— The Deloitte Center for Health Solutions found that 75% of healthcare organizations are currently leveraging or plan to adopt generative AI technologies.

Drug discovery companies are actively using AI technologies to enhance research and streamline supply chains, enabling faster market delivery of new products. By using advanced algorithms, these companies gain insights that lead to better decision-making in drug development, ultimately bringing vital medications to patients more efficiently.

With the promising future of AI in drug discovery, here are eight noteworthy companies to consider investing in:

Bristol-Myers Squibb Co. (BMY)

Currently, Bristol-Myers Squibb shares have seen a decline in value this year, despite offering a healthy dividend yield of 4.2%. This drop is mainly due to challenges many drug developers face. For instance, the company's skin cancer treatment, Opdualag, showed disappointing results in recent trials. Furthermore, the 2025 forecast has not met analysts' expectations as generics continue to rise in the market.

However, Bristol-Myers has positioned itself to benefit from AI, emphasizing its integration into various facets of research and development. Their unique AI programs aim to boost efficiency and innovation across multiple departments, improving overall effectiveness.

Eli Lilly and Co. (LLY)

Eli Lilly has increased by about 10% this year, outperforming the S&P 500 index. In the fourth quarter of 2024, Eli Lilly's drugs for obesity and type 2 diabetes generated impressive revenues of $1.9 billion and $3.5 billion, although these figures were below analysts' predictions, raising some concerns.

Investment in AI has been substantial at Eli Lilly, which aims to enhance research capabilities and optimize drug discovery and clinical trials. Analysts maintain a positive outlook on this stock, with projections indicating a target price that reflects potential for further growth.

AbCellera Biologics Inc. (ABCL)

Based in Vancouver, British Columbia, AbCellera focuses on developing therapeutic antibodies. Though facing a 44.8% drop in stock price over the past year, the company maintains a robust financial standing, with significant cash reserves and minimal debt.

AbCellera stands to gain from the implementation of AI, facilitating quicker development of therapeutic products. This company's collaborations, especially with industry giants like Eli Lilly, reinforce its potential for future success.

Super Micro Computer Inc. (SMCI)

Super Micro Computer has recently seen a notable rise in stock performance, climbing 18.4% in just the past three months. This technology firm targets ambitious revenue goals, with expectations of substantial financial results driven by partnerships, particularly with Nvidia.

Despite facing some regulatory challenges in the past, the growth trajectory for Super Micro seems promising as long as the company navigates its operational hurdles effectively.

Novartis AG (NVS)

Novartis is performing well in 2025, showing a 17.4% increase in stock price along with a solid dividend yield of 3.5%. A recent $3.1 billion acquisition demonstrates the company’s strategic growth, integrating innovative therapies into its portfolio.

By forming partnerships that leverage AI technology, like the collaboration with Generate: Biomedicines, Novartis is set to enhance its drug development processes, emphasizing its commitment to using advanced technologies in pharmaceuticals.

Schrodinger Inc. (SDGR)

Schrodinger is recognized for its innovative chemical simulation software. Recently, their collaboration with Novartis further solidified its presence in the market, resulting in a notable increase in stock price.

The focus on integrating AI-driven software solutions into drug development indicates a strong future for Schrodinger, as evidenced by analyst ratings advocating "buy" positions on their stock.

Pfizer Inc. (PFE)

Pfizer has faced challenges this year with a slight decrease in stock value. However, the company remains a key player in the biopharmaceutical industry, particularly with recent FDA approvals and an attractive dividend yield of 6.7%.

Utilization of AI technologies since 2014 shows Pfizer's proactive approach to innovation. The recent expansion of their partnership to enhance drug development processes demonstrates their ongoing commitment to leveraging advanced technologies in their product lineup.

Absci Corp. (ABSI)

Absci started 2025 on a strong note with a strategic partnership aimed at enhancing drug development processes, especially in immunology. Using AI for rapid therapeutic creation has positioned Absci favorably in the market.

The stock has gained traction since the announcement of investment interest from influential institutional investors, indicating confidence in the company's future.

Collectively, these companies reflect a growing trend in the pharmaceutical industry to harness the power of AI for improved drug discovery and manufacturing processes, paving the way for innovation that ultimately benefits healthcare.

AI, Pharmaceuticals, Stocks