<div id="readability-page-1">After a blistering run, the stock market has lately found itself stuck in a bit of a trading rut, with more and more chatter that the AI boom is drifting from 'transformational' toward 'show-me-the-profits.' Investors have been zeroing in on ballooning AI capex plans, and the fear is simple – if Big Tech keeps pouring tens of billions into data centers without clear payback, today's premium valuations start looking shaky. That dynamic has pushed the market toward a rotation out of some AI darlings.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> Against this backdrop, Wedbush analyst Laura Chico argues that while AI remains a powerful long-term theme, the current pause in market leadership is opening the door for other high-beta areas to attract attention. Biotech, she says, is emerging as one of those destinations. The sector's bellwether, the SPDR S&amp;P Biotech ETF (XBI), is up about 37% year-to-date, ahead of the S&amp;P 500's 16% gain. Asking the question, &#34;What's the setup into 2026?&#34; Chico offers a straightforward answer: &#34;Simply put, we think biotech momentum continues. FDA chaos seems priced in at this point and with the 'AI' trade slowing, we see an opportunity for biotech to garner more interest… We see several ideas featuring embedded de-risking, valuations underestimating validated market opportunities, and defined catalysts within the next 12 -18 months.&#34; Leaning into that opportunity, Chico and her colleagues at Wedbush are pointing out two biotech stocks that bring triple-digit upside potential to the table – in one case, as much as 600% for the year ahead. According to the TipRanks database, both names get a 'Strong Buy' rating from the broader analyst consensus, too. Let's take a closer look at what's driving the enthusiasm across the board. Artiva Biotherapeutics (ARTV) The first stock drawing Wedbush's attention is Artiva Biotherapeutics, a micro-cap biotech developing a new class of natural killer (NK) cell-based therapies for autoimmune diseases and cancers. These conditions can be devastating for patients and often come with limited or ineffective treatment options. Artiva's lead candidate, AlloNK, is being developed as a potentially safer, more effective, and more accessible form of cell therapy. Artiva is evaluating AlloNK across multiple autoimmune indications through several clinical programs, including a Phase 2a basket trial that tests a single therapy across related diseases. That ongoing study is examining AlloNK, in combination with rituximab, in refractory rheumatoid arthritis (RA), Sjögren's disease (SjD), idiopathic inflammatory myopathies (IIMs), and systemic sclerosis (SSc). The trial received FDA clearance in May, with patient dosing beginning in August. In parallel, Artiva is running a company-sponsored Phase 1/1b trial in systemic lupus erythematosus (SLE), with or without lupus nephritis, using AlloNK in combination with anti-CD20 antibodies, and an investigator-initiated trial spanning additional autoimmune conditions, including RA, pemphigus vulgaris, SLE, and ANCA-associated vasculitis. In October, the FDA granted Fast Track designation to AlloNK in refractory RA, elevating it to the program's lead indication and underscoring its potential to address a significant unmet need among more than 150,000 U.S. patients who have failed at least two biologic or targeted synthetic DMARDs. More recently, Artiva reported encouraging safety and tolerability data from 32 autoimmune patients treated with AlloNK plus an anti-CD20 monoclonal antibody across its clinical programs, as of the October 1 data cutoff. Patients received either 1 billion or 4 billion AlloNK cells per dose, all in outpatient settings, largely at community rheumatology sites. Importantly, no cases of cytokine release syndrome or neurotoxicity were observed, and all patients achieved complete B-cell depletion by Day 13. Artiva plans to share initial clinical response data in refractory RA and engage with the FDA on the design of a pivotal RA trial in the first half of 2026. With early clinical validation taking shape and shares trading around $3.30, Wedbush analyst Martin Fan sees a compelling setup. &#34;We are encouraged by the possibility of rapid development in RA due to accelerating enrollment and regulatory support. Upside is likely should ARTV pursue expansion opportunities from other indications in its ongoing Ph 2a basket trial including Sjögren's disease (SjD), idiopathic inflammatory myopathies (myositis/IIM), and systemic sclerosis (scleroderma/SSc)… We see room for substantial near-term appreciation as sizeable data sets emerge… Shares remain below cash of $5/sh, and we would be buyers ahead of key data and regulatory events,&#34; Fan opined. So how much upside does Fan see from here? The analyst rates ARTV an Outperform (i.e., Buy), with a $23 price target that suggests a whopping ~600% upside over the next 12 months. (To watch Fan's track record, click here) That bullish stance is echoed across the Street. Artiva carries a Strong Buy consensus, backed by 5 unanimously positive analyst ratings, while the average price target of $16.50 implies a potential gain of 400% over the coming year. (See ARTV stock forecast) </div>

ARTV

Wedbush analyst Laura Chico predicts a shift in market focus from AI to biotech, highlighting Artiva Biotherapeutics (ARTV) as a promising investment. Artiva's AlloNK therapy shows potential in treating autoimmune diseases, with FDA Fast Track designation for refractory RA. Analyst Martin Fan sees a 600% upside for ARTV, driven by rapid development and regulatory support. Shares are currently undervalued, presenting a buying opportunity ahead of key data releases.

Wedbush Predicts Up to 600% Jump for These 2 'Strong Buy' Stocks