The Next Wave of Medical AI Could Mint More Millionaires Than the First -- Here Are the Stocks to Own

Eli Lilly (NYSE: LLY) and Twist Bioscience (NASDAQ: TWST) are two healthcare companies using AI in very different ways, but with the same goal: speeding up real-world drug development. The first wave of AI rewarded companies that sold the "picks and shovels." The next wave may reward companies that dig deep into clinics, pharmacies, and labs to turn those tools into new medicines.

Indeed, the smart money tends to show up where AI meets real-world use. These two companies sit in very different places on that map, and each has its own potential growth drivers.

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Eli Lilly

Eli Lilly is a steady heavyweight that finds its way into many investors' portfolios. The company dates back to the 1870s and sells well-known metabolic drugs for diabetes and weight loss, as well as higher-margin verticals for cancer, immune conditions, and more.

When it comes to Lilly, the AI narrative lives in the lab. The company is working with OpenAI on drug discovery, all while building an AI co-innovation lab with Nvidia to find promising molecules faster than the traditional approach.

As of June 17, Lilly shares trade at about $1,120, near the top of its 52-week range between $623.78 and $1,182.73. During the past year, the stock has gained 36%, and during the past five years, it has risen more than 400%.

Lilly's first quarter of 2026 was impressive. Revenue jumped 56% to $19.8 billion, and reported net income climbed 168% to $7.4 billion. Profit is growing about three times faster than sales, which suggests the business is becoming more efficient. That is even more notable given Lilly's size.

Today's investors should watch for Eli Lilly's potential growth driver, Foundayo, a newly approved weight-loss pill that can be taken at any time of day. It is notable because a pill that replaces an injection could open the door to a much wider group of patients, and Lilly already has the capacity to supply them.

Twist Bioscience

Twist Bioscience is the higher-risk growth name of the two. The company has been around since 2013 and makes synthetic DNA that drugmakers use to test their ideas.

Twist stock currently trades at about $83 per share (as of June 17). The stock is up more than 136% during the past year, though it is worth noting that it is down 26% during the past five years.

When we look at the financials, Twist reported revenue rising 19% to $110.7 million in the fiscal second quarter of 2026. Notably, this top-line number has increased for 13 straight quarters. The catch is that the net loss widened to $44 million from $39.3 million a year earlier, largely driven by a $7.2 million settlement.

A catalyst worth watching is Twist's partnership with Amazon (NASDAQ: AMZN). The company is now one of the go-to labs in Amazon Bio Discovery, a new AWS cloud platform where scientists can design drugs with AI and have them developed by real-world partners. Drug development is exactly what Twist does, putting the company on the receiving end of AI-driven drug ideas from one of the biggest names in tech.

What does that leave us?

The money may be moving from the companies that built the tools to the companies putting those tools to work. While these two businesses sit at opposite ends of that spectrum, both are using AI to create something tangible.

It may not feel big or loud yet, since adoption is still getting started. Neither stock is a guaranteed win, and the higher upside comes with higher uncertainty. Still, these two companies offer a glimpse of what the next wave of medicine could be.

Rick Orford has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Eli Lilly, Nvidia, and Twist Bioscience. The Motley Fool has a disclosure policy.