Grail (GRAL) is jumping for a second straight day, climbing 6% today, after Oracle (ORCL) Chairman Larry Ellison on Tuesday said that blood tests that detect small tumor fragments could be used, in combination with AI and gene sequencing, to develop personalized cancer vaccines. Grail has created and is marketing such a blood test.

Ellison Calls for Utilizing Blood Tests to Facilitate the Development of Cancer Vaccines

Ellison was referring to blood tests that can detect many types of cancer relatively early. The effectiveness of these tests could be enhanced with AI, said Ellison, who was speaking at the announcement of the Stargate AI infrastructure initiative.

A physician holding a vial of blood and discussing diagnostic options with a patient.

After the tumors that are discovered undergo gene sequencing, an individualized vaccine could be developed for each patient using AI in just two days, he stated.

Obviously, if this practice becomes widespread, companies that have developed multi-cancer early detection (MCED) tests, including Grail, will be well-positioned to benefit significantly.

Grail Preannounced Higher-Than-Expected Revenue, Provided Upbeat Guidance

Last week, Grail preannounced 2024 revenue of $124 million to $126 million, above analysts' average estimate at the time of $120.62 million. What's more, GRAL noted that it had sold about 137,000 of its MCED tests last year, up from roughly 94,000 in 2023. Finally, the company reported that it had enough cash to last until 2028, while it expects the sales of its MCED test to climb 20% to 30% in 2025.

While we acknowledge the potential of GRAL, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GRAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of GRAL but has no plans to trade them in the next 48 hours. This article is originally published at Insider Monkey.