6 Best AI Drug Discovery Stocks in 2025

AI drug discovery stocks in 2025 are attracting attention because artificial intelligence is reshaping how biotech companies approach research and development. In trading, the biggest opportunities often come from sectors on the edge of disruption, and AI-powered drug development is exactly that. These six stocks carry both risk and potential, making them a strong focus for traders who thrive on volatility and catalysts.

Check out my complete AI penny stock watchlist here!

6 Best AI Drug Discovery Stocks to Watch

Company	Ticker	Focus Area	Key Advantage
Absci Corp.	NASDAQ: ABSI : undefined	AI biologics and protein design	Generative AI platform and pharma collaborations
AbCellera Biologics Inc.	NASDAQ: ABCL	Antibody discovery	Large-scale pharma partnerships, including Eli Lilly
BioXcel Therapeutics Inc.	NASDAQ: BTAI	Neuroscience and oncology	AI-driven trial design and Phase 3 success
Recursion Pharmaceuticals Inc.	NASDAQ: RXRX	AI and machine learning in R&D	Recursion OS platform and Nvidia partnership
Roivant Sciences Ltd.	NASDAQ: ROIV	Multi-subsidiary biotech model	Diversified pipeline through Vants and strong balance sheet
Tempus AI Inc.	NASDAQ: TEM	Oncology and diagnostics	Healthcare data analytics platform with fast revenue growth

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Absci Corp. (NASDAQ: ABSI)

Absci Corp. is using artificial intelligence and synthetic biology to design new biologics, including antibodies and proteins. Its generative AI platform allows biotech and pharma partners to test molecules and compounds at scale, cutting down time and costs in drug development. The company has drawn attention through partnerships and recent funding moves, which validate its approach.

Despite missing revenue expectations in Q2 2025, Absci stock remains a target for institutions and venture capital. ARK Invest recently increased its stake, highlighting confidence in the company’s growth potential. Absci is still unprofitable, with a negative return on equity and high burn rate, but that volatility makes it attractive for traders who thrive on quick moves. I often remind traders that low-priced biotech stocks can see sharp runs when catalysts hit, and ABSI fits that pattern.

AbCellera Biologics Inc. (NASDAQ: ABCL)

AbCellera Biologics focuses on antibody discovery through an AI-powered platform that integrates data science, molecules, and protein research. Its major advantage is the scale of its collaborations with pharmaceutical companies like Eli Lilly, which has already helped bring therapies to market. Recently, AbCellera announced the start of Phase 1 clinical trials for ABCL635 and ABCL575, signaling progress toward becoming a true clinical-stage biotech.

With more than $750 million in liquidity, AbCellera has the funding to advance its pipeline without relying heavily on dilutive capital raises. Truist Financial recently reaffirmed a Buy rating and set a $10 price target, even as the stock trades under $5, making it a penny stock that traders should view as a potential short-term opportunity. I always stress that penny stocks are for trading, not investing, because they can run 100% on news or collapse just as fast. ABCL is a textbook example of that setup.

BioXcel Therapeutics Inc. (NASDAQ: BTAI)

BioXcel Therapeutics applies AI analytics to neuroscience and oncology, with its lead therapy BXCL501 showing positive Phase 3 results in the SERENITY trial. The drug, marketed as Igalmi for supervised use, is being tested for at-home treatment of agitation in bipolar disorder and schizophrenia. The company expects to file for FDA approval in early 2026 to expand the label.

Read more: BioXcel Therapeutics: Poised for a Major Breakthrough? 

BTAI shares jumped after announcing trial success but quickly pulled back, showing the volatility that often follows biotech catalysts. This is a stock that moves hard on data, and traders can use those swings to their advantage. I’ve traded similar setups in biotech for years, and the key is always preparation ahead of trial news. While profitability is still distant, the pipeline progress makes this stock one to watch closely for trading opportunities.

Recursion Pharmaceuticals Inc. (NASDAQ: RXRX)

Recursion Pharmaceuticals is combining machine learning, automation, and large-scale biology through its Recursion OS platform. The company reported Q2 2025 revenue of $19.2 million, mostly from collaborations with pharma partners like Roche and Genentech. Nvidia also backs Recursion, providing both capital and AI infrastructure to accelerate its analytics and research.

Here’s my list of the 7 Best AI Infrastructure Stocks to Buy this year!

Even with growing revenue, Recursion operates at a steep loss, with a high cash burn typical of early-stage biotech companies. The upside for traders comes from its large cash reserves of more than $500 million, which provide a long runway through 2027. RXRX shares have been volatile this year, trading over 55% below their highs, but analyst firms like Needham still rate it a Buy with an $8 target. I always tell traders to look for strong catalysts in beaten-down stocks, and Recursion fits that mold.

Roivant Sciences Ltd. (NASDAQ: ROIV)

Roivant Sciences runs a unique model where its biotech subsidiaries, called Vants, focus on different therapeutic areas like oncology, autoimmune disorders, and pulmonary disease. This setup spreads risk across multiple programs while giving Roivant the flexibility to monetize or spin off successful assets. Current catalysts include Phase 3 trial results for Brepocitinib in dermatomyositis, which could become the first approved therapy for the condition.

Financially, Roivant has more than $4.5 billion in cash and marketable securities, giving it strong liquidity for R&D and share repurchases. It recently completed a $1.5 billion buyback program, signaling confidence in the company’s valuation. The stock has pulled back after disappointing earnings, but that makes it an interesting trading setup with catalysts ahead. I often tell students to focus on catalysts combined with strong funding, and Roivant checks both boxes.

Tempus AI Inc. (NASDAQ: TEM)

Tempus AI is a healthcare technology company that applies AI to oncology and diagnostics, giving physicians actionable insights through data analytics. The company reported Q2 2025 revenue growth of nearly 90% year-over-year, raising full-year sales forecasts to about $126 million. Its broad data platform integrates molecular, clinical, and genomic information, which also feeds back into drug discovery.

Here’s my in-depth analysis of Tempus AI.

Even though profitability is far off, Tempus has a strong balance sheet with a debt-to-equity ratio of just 5%. Shares have surged nearly 80% this year, now trading around $65, yet analysts see further upside because of its growth potential. Like many newly public biotech and AI stocks, volatility is high, which is why I focus on trading these names when catalysts align. Tempus combines growth, hype, and sector exposure, all of which attract traders looking for opportunity.

Factors to Consider when Buying AI Drug Discovery Stocks

AI drug discovery is a high-potential but high-risk sector, and careful analysis is required before making any moves. A company’s AI platform and technology must be validated, since the strength of its models affects drug discovery accuracy. Strong platforms often lead to better collaboration opportunities with pharmaceutical companies.

Check out my top biotech penny stock list HERE!

Pipeline strength is a key indicator, with traders needing to consider the number of assets and their trial phases. A diversified pipeline spreads risk across multiple compounds and therapies. Partnerships with biotech and pharma firms like Eli Lilly or Novo Nordisk can provide funding and accelerate drug development, while also boosting market share expectations.

Financial health matters just as much as science. A solid balance sheet and long cash runway give companies the ability to sustain R&D. Intellectual property, including patents on algorithms and molecules, protects against competition. Finally, leadership experience in both pharma and AI makes a major difference in execution. I’ve seen good ideas fail because management couldn’t deliver, which is why I always emphasize leadership quality in stock analysis.

Challenges and Market Risks Associated with AI Drug Discovery Stocks

Unproven long-term clinical success is one of the biggest risks, since most AI-driven therapies are still in early clinical trials. Few AI-discovered drugs have reached FDA approval, and outcomes remain uncertain.

Dependence on external data quality is another challenge. AI models rely on biological and clinical datasets that can contain bias or gaps, which may limit performance. Regulatory hurdles also exist, as agencies are still shaping how they assess AI-driven drug development for safety and efficacy.

Market volatility is unavoidable in this sector. Stocks often move sharply based on trial outcomes, earnings, or funding news. Competition is heating up, with both startups and established pharmaceutical companies moving into AI drug discovery. For traders, that volatility is the opportunity and growth.

Where Can I Buy AI Drug Discovery Stock?

AI drug discovery stocks trade on the Nasdaq and can be accessed through major online brokerages like Fidelity, TD Ameritrade, E*TRADE, and Schwab. These platforms allow traders to buy individual biotech and pharma shares, as well as healthcare-focused ETFs that include AI-driven companies.

Some ETFs, like ARK Genomic Revolution ETF or Global X Genomics & Biotechnology ETF, provide exposure to multiple AI drug discovery names. That spreads risk across the sector but limits sharp upside moves. I prefer trading individual shares because they react more strongly to catalysts, giving better short-term opportunities.

Key Takeaways

• AI drug discovery stocks are an exciting mix of artificial intelligence, biotech, and pharma innovation. The growth potential is real, but so is the risk of failure in clinical trials and funding challenges. 
• Strong AI platforms, diversified pipelines, partnerships, and solid funding are the most important factors to look at.
• For traders, volatility is the real opportunity. Stocks in this sector can rise or fall sharply on trial news or collaboration announcements. Success comes from preparation, not chasing hype, which is why disciplined trading is the only way to approach these setups.

This is a market tailor-made for traders who are prepared. AI stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

If you want to know what I’m looking for — check out my free webinar here!

Frequently Asked Questions

What Sets AI Drug Discovery Companies Apart from Traditional Biotech?

AI drug discovery companies stand out because they use artificial intelligence and machine learning to accelerate drug development. Traditional biotech relies more on slow trial-and-error methods, while AI models can process millions of compounds and molecules quickly.

This speed helps pharma companies shorten clinical trial timelines and reduce costs. For traders, the difference is that AI-driven companies attract more attention and partnerships, often leading to sharper stock moves.

Are Partnerships with Big Pharma Key to Success in this Sector?

Partnerships with pharmaceutical companies like Eli Lilly and Novo Nordisk are often critical to success in AI drug discovery. These alliances provide validation, funding, and access to broader R&D resources.

Stocks often move quickly when new partnerships are announced because the market views them as proof of technology strength. For traders, these partnerships are major catalysts worth watching.

How Can I Assess the Potential of an AI Drug Discovery Platform?

The potential of an AI drug discovery platform can be judged by looking at its pipeline, intellectual property, and collaborations. Companies with assets across multiple trial phases reduce risk compared to those relying on a single compound.

Strong IP protection and validated partnerships with biotech or pharma players make the platform more valuable. Traders should also consider the company’s cash position and funding sources since drug discovery requires long timelines.

Which ETFs Include AI Drug Discovery Companies?

Several ETFs give exposure to AI drug discovery through biotech and healthcare holdings. Examples include ARK Genomic Revolution ETF and Global X Genomics & Biotechnology ETF, both of which may hold companies like Recursion or Tempus.

ETFs provide diversification, lowering risk compared to single stock trades. But for traders looking for sharp intraday or catalyst-driven moves, individual biotech stocks often deliver better opportunities.

How Does NVDA Influence AI Drug Discovery Stocks?

NVDA powers the GPUs behind modern AI models, which boosts compute capacity and speeds experiments across the industry. Investors track NVDA collaborations and cloud credits tied to biotech and the broader pharmaceutical industry because they can validate a company’s tech stack. Strong NVDA demand often lifts sentiment and can improve potential returns for AI drug discovery shares when compute access becomes a clear advantage.

What Should Investors Know About Investment Timelines and Potential Returns in the Pharmaceutical Industry?

Investors should expect long, uncertain timelines in this industry because drug discovery and clinical trials stretch far before any approval or revenue. An investment in AI-driven biotech within the pharmaceutical industry can produce asymmetric returns, but failure rates and funding needs can dilute gains. Plan position sizing around catalysts and cash runway, since both can swing valuation and realized returns more than broad market moves.