Investing.com -- Shares of Abcellera Biologics (NASDAQ:ABCL), Absi Corp (NASDAQ:ABSI), Recursion Pharma (NASDAQ:RXRX), Schrodinger (NASDAQ:SDGR), and Certara (NASDAQ:CERT) are experiencing significant gains in Wednesday's trading session. The movement comes after Oracle’s chairman and co-founder Larry Ellison highlighted the potential of artificial intelligence (AI) in revolutionizing healthcare, particularly in early cancer detection and the development of personalized vaccines.
During a speech at the White House on Tuesday, Ellison emphasized AI's ability to detect cancer early through blood tests and its crucial role in creating individualized vaccines rapidly. This announcement has sparked investor interest in companies engaged in AI-driven drug discovery, as evidenced by the sharp rise in their stock prices: Abcellera Biologics by 15%, Absi Corp by 28%, Recursion Pharma by 6%, Schrodinger by 16%, and Certara by 6%.
Ellison's remarks resonate with investors, as they come alongside President Donald Trump's announcement of a $500 billion investment in AI infrastructure, including a venture named Stargate with contributions from OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL). This initiative aims to enhance AI's significance in healthcare through the establishment of data centers and job creation.
Further explaining the impact of AI on healthcare, Ellison described how AI-powered blood tests could detect tiny fragments of tumors circulating in the blood, leading to early cancer diagnosis. Moreover, AI's capability in gene-sequencing cancerous tumors is expected to aid in developing mRNA vaccines that can be robotically produced within 48 hours, providing a swift and tailored approach to cancer treatment.
While the specific financial performance of these companies was not detailed in the context of the stock movement, the broader industry implications and the potential for growth in the AI healthcare sector are clear drivers of investor enthusiasm. As the market responds to these technological advancements and the promise they hold for healthcare, shares of companies at the forefront of AI-based drug discovery are likely to continue to attract attention.
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