Artificial intelligence (AI) is transforming various industries as a major investing theme in 2025. The technology’s ability to automate complex workflows and enhance productivity is seen as a game-changer for the next generation of innovation.

Perhaps the most promising AI application is its potential to revolutionize medicine by accelerating the drug discovery process to deliver more effective therapies. Several biotechnology companies are embracing these cutting-edge capabilities to unlock new growth opportunities.

Here are three fantastic biotech stocks harnessing the power of AI that could make a great addition to your portfolio.

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1. AbbVie

AbbVie (ABBV -0.27%) is a leader in biopharmaceuticals with a product portfolio spanning multiple therapeutic areas, including a strong focus on immunology diseases and an expanding oncology and neuroscience franchise.

The stock rallied sharply following a better-than-expected fourth-quarter earnings report, propelled by strong sales of blockbuster autoimmune drugs Skyrizi and Rinvoq — seen as improved successors to the legacy Humira. Management expects continued operating and financial momentum, targeting 2025 adjusted earnings per share (EPS) between $12.12 and $12.32, representing a solid 21% increase at the midpoint over the 2024 result.

Optimism surrounds AbbVie’s artificial intelligence strategy, which is centered on AbbVie Research and Development Convergence Hub (ARCH) and is coupled with an extensive drug candidate pipeline. This platform enables scientists to mine large-scale data, advance AI drug discovery, and optimize drug design. By integrating AI and machine learning into the R&D process, the company aims to potentially cut the traditional 10- to 15-year timeline for developing new medicines in half.

Ultimately, AbbVie appears to have all the pieces in place to reward shareholders over the long run.

2. Gilead Sciences

A winning approach to investing can sometimes be as simple as sticking with a proven winner. That’s great news for shareholders of Gilead Sciences (GILD -1.19%), as the stock is up 26% over the past year, reaching its highest level in nearly a decade.

This biotech giant is recognized for its antiviral therapies, leading global markets for HIV and hepatitis C treatments while making impressive progress diversifying into areas like oncology. The company’s third-quarter 2024 earnings exceeded Wall Street estimates amid strong demand across its product portfolio. Management projected confidence by hiking its full-year revenue and EPS target, citing positive market traction for Livdelzi, which treats primary biliary cholangitis (PBC), a debilitating liver disease.

Gilead’s outlook into 2025 is promising, with multiple late-stage clinical programs pending data readouts. In January, the company expanded its partnership with Cognizant to develop custom generative AI solutions aimed at enhancing corporate efficiency. A separate collaboration with privately held Terray Therapeutics leverages the biotech firm’s AI-driven “tNova drug discovery platform,” with Gilead securing an exclusive option to commercialize potential products developed through the program.

These initiatives position Gilead to maintain its competitive edge in the rapidly evolving biotechnology landscape. The company’s ability to continue innovating makes Gilead a compelling stock to own in what could be a milestone year.

3. Moderna

In contrast to shares of AbbVie and Gilead Sciences, which have been strong performers to kick off 2025, Moderna (MRNA -1.00%) stands out as a turnaround opportunity.

The company, recognized for its pioneering role in mRNA vaccine development, has struggled to manage declining demand for COVID-19 immunizations. Market concerns regarding Moderna’s ability to produce a new blockbuster drug have led to its stock dropping by a disastrous 64% over the past year. Nevertheless, this volatility can present investors with a compelling buying opportunity in a beaten-down industry leader, which could be the case here.

Moderna is moving forward with exciting therapeutic prospects, including new vaccines for norovirus and cytomegalovirus (CMV). In January, the company received a $590 million award from the U.S. government to complete late-stage development of an H5N1 avian influenza vaccine.

The company has set an ambitious goal of securing 10 new product approvals within three years, with artificial intelligence playing a pivotal role. Moderna is building a comprehensive digital platform and cloud-native infrastructure, collaborating with tech leaders like OpenAI and IBM to integrate AI across its value chain and scale mRNA technology.

Investors confident in Moderna’s ability to get back on track with stronger growth may view the current stock price as an attractive entry point for a long-term holding.