While everyone's watching AI reshape chipmakers and tech sectors, the most profound transformation may be unfolding where no one’s looking: biotech.

Artificial intelligence is quietly powering the biggest rally in biotech stocks since the early 2000s, and it's not hype, it’s math.

The iShares Biotechnology ETF (NYSE:IBB) has risen for six straight months, notching its longest winning streak since 2012. But it's not just about consistency—the strength of the move is historic.

The sector is up 40% in that stretch, making it the best 6-month rolling return for biotech since September 2003.

Biotech has been a long-underperforming sector that is now finally getting a structural narrative: AI is beginning to solve the cost and efficiency challenges that have plagued pharmaceutical R&D for decades.

Chart: Biotech Stocks Log Best 6-Rally In Over 20 Years

‘We're No Longer Betting on Science Fiction’

For decades, drug discovery has been defined by brutal timelines, extreme costs and eye-watering failure rates. ...