What happens to biotech if the AI bubble bursts? A Perspective

By the numbers, biotech had a strong 3Q25, with indexes outperforming the broader markets and tech as M&A continued to ramp up. Yet with specialist healthcare investors still driving the sector and the generative AI boom capturing most market enthusiasm, the prospect of meaningful fund flows back into life sciences remains dim.

Biotech’s recent positive performance has come despite AI enthusiasm dominating the broader markets, which raises a critical question: What happens if the genAI bubble bursts?...