This could be a big year for biotech

This could be a big year for biotech 

Patent cliffs and pipeline gaps are driving a “structural bid” for the biotech sector, according to recent research from Cathie Wood’s ARK. Biopharma M&A is spiking: in March, companies announced 10 deals worth about $31.5bn. A key driver is the $300bn patent cliff expected by 2030, impacting major drugs like Merck’s [MRK] Keytruda and Bristol Myers Squibb’s [BMY] Eliquis. “The larger opportunity – one arguably misunderstood by the market – is in modalities that could shift treatment paradigms from chronic management to one-time cures”, wrote ARK multi-omics analyst Shea Wihlborg.

Can Meta beat Google on ad revenue?

An eMarketer projection, reported by the Wall Street Journal, suggests Meta Platforms [META] could surpass Alphabet [GOOGL] this year as the biggest ad company in the world. However, as The Information clarified, that is on a net revenue basis; it excludes payments to partners and creators, and does not reflect total advertiser spend. On a gross basis, Alphabet remains dominant, generating $294.7bn in 2025 versus Meta’s $196bn. 

Tech investment tips from Seeking Alpha

Two of Seeking Alpha’s leading tech analysts have outlined their approach to the sector. Artificial intelligence (AI) CapEx ROI is the defining theme for 2026, as hyperscalers’ $680bn spend shifts from cash flow- to debt-funded, heightening scrutiny on revenue conversion. Optical networking (Lumentum [LITE], Applied Optoelectronics [AAOI]) and memory are key bottleneck trades. Cyber security, particularly CrowdStrike [CRWD], appears mispriced. Meta Platforms stands out. 

AI in China: Which stocks are leading the way?

Goldman Sachs now expects 30% of the Chinese economy to have adopted AI by 2030 – up from a previous forecast of 10-20% – with peak adoption projected around 2040, accelerated by developments such as DeepSeek. CMC Aureon unpacks how Alibaba [BABA], Baidu [BIDU] and Tencent [TCEHY] are all investing heavily in AI cloud services and agentic platforms, making them potentially attractive for investors willing to look past short-term macro and geopolitical headwinds.

Is OpenAI on the back foot?

OpenAI’s $852bn valuation is facing growing scrutiny from backers as it pivots towards enterprise AI and competition with Anthropic, the Financial Times reported. A series of strategic deals and project cuts is intended to refocus the firm on defending ChatGPT’s consumer dominance while expanding in corporate AI tools. Anthropic’s rapid growth has driven annualised revenue from $9bn to $30bn, surpassing OpenAI’s $25bn, though accounting differences limit comparability.

SpaceX: The numbers behind the hype

According to a special report from The Information, SpaceX overall is a “money pit”, with the exception of its Starlink unit, which generated $7.2bn in EBITDA last year. Its launch operations and xAI venture are not producing cash, with AI the largest drain given high development costs. For prospective investors, however, the upcoming IPO is atypical, centred on funding Elon Musk’s ambitions in AI, orbital infrastructure and space travel, rather than conventional profitability. 

Does Argan offer AI-proof growth?

With volatility seemingly the new normal for the market, the first quarter of the year has seen investors fleeing high-growth tech stocks to hunker down in the “real economy”. Argan [AGX], however, seems to offer the best of both worlds. The Rockville, Maryland-based holding company enjoys indirect exposure to the data centre boom, while its core construction business appears immune to AI-driven disruption. CMC Aureon explores Argan’s key businesses and fundamentals, and examines whether its recent growth could really be “AI-proof”.