Bussin Science Investor
Investor Focused on Risk/Reward
GE HealthCare is taking share from Siemens and weaker players after spending its post-spin years investing where it needed to. A price increase kicks in later this year, and its heart product should add another 20% to EPS within a few years, with research suggesting it is ramping in large facilities. @gary_stangs notes management has struggled with consistency and messaging. x.comÂ
AI now makes early disease detection possible at scale, and catching disease early is always cheaper than treating it late. Detection names like Grail, Guardant, RadNet and Lunit win on distribution and reimbursement; grading names like Tempus, Veracyte, GE HealthCare and HeartFlow build data moats near treatment decisions. Monitoring via Natera, Personalis and iRhythm is the most asymmetric layer, a recurring subscription. NVIDIA gets paid whichever test wins. x.comÂ
Physical AI is the natural progression of the AI trade, and Ouster is likely to lead it. Micropolis is an under-the-radar robotics stock praised by Nvidia and collaborating with Ouster and Siemens. Ainos, a $15 million microcap whose AI scent technology drew Wall Street Journal coverage and is in early deployment in semiconductor fabs per @kingtutcap, is a speculative play that looks like ASTI in December, when the space trade began. Mobileye and Serve Robotics are also part of the theme. x.com … Show more
Intuitive Surgical is a small bullish bet as healthcare and software strengthen and money rotates out of semiconductors. It did well on its last two earnings reports and shows a potential, unconfirmed daily bullish divergence. It then posted a double beat, EPS of $2.50 versus $2.10 and revenue of $2.77B versus $2.61B, but the stock barely reacted because the market's bar is extremely high. A put/call ratio near 0.97 signals excess optimism, and high implied volatility risks a crush. x.comÂ
Medical stocks such as Hyperfine and Butterfly Network could see rotation soon, as Wall Street eventually catches on to the boom AI is driving across all aspects of medicine. x.comÂ
AI biotech names such as Tempus AI, Recursion, Ginkgo Bioworks and Prime Medicine could become the new home for money rotating out of AI and semiconductor leaders, with Moderna and Merck's positive phase 3 melanoma results for their mRNA neoantigen therapy a possible catalyst. Sentiment toward AI in healthcare should be far warmer than toward job-displacing AI, since everyone faces disease, and could top the semis trade. Indices could chop or fall while these biotechs outperform. x.com x.com … Show more
Biotech, including Thermo Fisher, Eli Lilly, Intellia, CRISPR, Illumina and NeoGenomics, stands to gain as AI-trade capital rotates out of infrastructure, since healthcare is the largest market AI has yet to disrupt. AI hardware is worth about $14 trillion versus $1.4 trillion for biotech, so a 2.5% rotation could, at 5x inelasticity, put $1.75 trillion of pressure on biotech. Capital isn't leaving the AI trade; the equal-weighted S&P 500 is at all-time highs. x.com x.comÂ