This Is Nvidia CEO Jensen Huang's Favorite Biotech Stock -- and You've Probably Never Heard of It

Generate Biomedicines (NASDAQ: GENB) is one of the top five largest holdings of Nvidia (NASDAQ: NVDA) , run by CEO Jensen Huang. Let that sink in for a moment. The largest publicly traded company by market capitalization has roughly $10.4 million invested in a clinical-stage biotech company . Nvidia has invested in Generate through its venture arm, NVentures.

That says a lot about the possibilities for Generate, which went public this past February with an initial public offering (IPO) . Its shares are up more than 12% so far this year. The company's artificial intelligence (AI) platform, called the Generate Platform, is designed to accelerate the process and improve the success rate of creating new therapeutics.

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Here are two reasons to buy Generate Biomedicines stock, and one reason to be cautious.

Unlike traditional biotechs that screen existing compound libraries or modify natural proteins, Generate uses proprietary machine-learning architectures, such as its Chroma model, to engineer novel, tailor-made protein therapeutics from scratch. This platform approach targets disease pathways and undruggable proteins that legacy drug discovery methods struggle to reach.

Generate is not just a theoretical software play; it is actively proving its computational models in human trials. Lead candidate GB-0895, an anti-thymic stromal lymphopoietin antibody, has reached phase 3 trials for severe asthma, alongside an early-stage trial in COPD. Additionally, strategic backing and co-development deals with Amgen and Nvidia provide strong institutional validation.

Because Generate operates as an automated, reproducible drug design engine rather than a single-drug developer, it can systematically generate dozens of clinical candidates across multiple therapeutic areas. This broad pipeline spreads clinical risk across numerous targets rather than tying the stock's valuation to a single binary trial result.

Oncology medicine GB-4362 is a monoclonal antibody designed to neutralize monomethyl auristatin E (MMAE) payload toxicity. It aims to broaden the therapeutic window of MMAE-based antibody-drug conjugates (ADCs) by reducing off-target side effects, such as peripheral neuropathy, without sacrificing anti-tumor efficacy.