AbbVie Inc. (ABBV): Among Billionaire Ken Fisher’s Healthcare Stock Picks with Massive Upside Potential

Insider Monkey
18 hours ago

We recently published a list of Billionaire Ken Fisher’s 10 Healthcare Stock Picks with Massive Upside Potential. In this article, we are going to take a look at where AbbVie Inc. (NYSE:ABBV) stands against other Billionaire Ken Fisher’s healthcare stock picks with massive upside potential.

The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world’s GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities.

Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025.

Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission’s 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive.

However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes.

Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. “What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,” said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options.

These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth.

Methodology

To create our list of Billionaire Ken Fisher’s 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher’s Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher’s existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey’s Q4 2024 database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist.

AbbVie Inc. (NYSE:ABBV)

Upside Potential: 24.48%

Number of Hedge Fund Holders: 85

AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical firm, based in North Chicago, Illinois. Since its inception in 2012, AbbVie has focused on discovering novel treatments to treat serious health diseases. The organization works in several therapeutic areas, including immunology, cancer, neuroscience, eye care, virology, and aesthetics. AbbVie is well recognized for its major therapies, including Humira, Skyrizi, Rinvoq, Imbruvica, and Venclexta. It also sells Botox for both therapeutic and cosmetic purposes, Vraylar for psychiatric issues, and a variety of treatments for migraines and eye diseases.

AbbVie Inc. (NYSE:ABBV) reported adjusted earnings per share of $2.16 per share and total net revenue of $15.1 billion in the fourth quarter of 2024, led by a 22% increase in its ex-Humira platform. Despite challenges from the Medicare Part D reform and foreign exchange implications, the company expects total net revenues of around $59 billion in 2025.

AbbVie Inc. (NYSE:ABBV) is continuing to build its pipeline through selective acquisitions and internal innovation. In 2024, the company purchased neuroscience specialist Cerevel Therapeutics, oncology-focused ImmunoGen, and Alzheimer’s therapeutic development Aliada for more than $20 billion. AbbVie anticipates incurring $248 million in milestone payments and R&D expenses in 2025 as a result of these acquisitions, causing its adjusted profit outlook to be revised.

In addition to strong financials, AbbVie Inc. (NYSE:ABBV) is developing multiple late-stage clinical initiatives in oncology, immunology, and neurology. Notably, the company is preparing for possible regulatory approvals of Teliso-V and Temab-A in lung and colorectal cancer, as well as further investigations of Emraclidine in psychiatric disorders and Tavapadon in Parkinson’s disease.

AbbVie Inc. (NYSE:ABBV) is a key holding in Ken Fisher’s stock portfolio, demonstrating its strong growth potential and diverse pipeline. With a strong product portfolio, active clinical development, and strategic acquisitions, it is well-positioned to maintain momentum and create long-term value in the healthcare industry.

Overall, ABBV ranks 9th on our list of Billionaire Ken Fisher’s healthcare stock picks with massive upside potential. While we acknowledge the potential of these companies, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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