“The convergence of AI and biotech isn’t just transforming medicine—it’s creating unique opportunities in stocks like ABSI that sit at this intersection.”

Last week, the market buzzed about Trump’s $500 billion Stargate AI project, which aims to revolutionize healthcare by leveraging AI for early cancer detection and custom vaccines.

Big names like Oracle, OpenAI, and SoftBank are joining forces, promising groundbreaking advancements in medicine.

While this initiative is massive, it highlights a broader trend: artificial intelligence is rapidly reshaping the biotech sector. Companies like Absci Corporation (ABSI) are at the forefront of this shift, using AI to disrupt traditional drug discovery.

Unlike the industry giants behind Stargate, ABSI is a speculative microcap—but that’s where the opportunity lies.

Trading at just $3.78, it’s small enough to fly under the radar yet positioned at the intersection of AI and biotech, two high-growth sectors.

Let’s dive into why ABSI is on our radar and how we’re playing it.

Why ABSI Could Be a Game-Changer

Absci is not your typical biotech. They’re combining AI-driven generative models with wet lab technologies to create first-in-class and best-in-class biologics. Their approach could slash the time and cost of drug development—a perfect fit for the AI revolution.

Here’s what makes ABSI stand out:

  1. Big Backers: AMD’s $20 Million Investment Earlier this month, AMD invested $20M in Absci through a PIPE deal. This partnership gives ABSI access to AMD’s AI chips and computing infrastructure, enabling faster and more efficient R&D. It’s a major vote of confidence from one of the biggest players in AI.
  2. Promising Drug Pipeline ABSI’s pipeline includes three standout candidates:
    • ABS-101 (anti-TL1A antibody for inflammatory bowel disease): Phase 1 trials begin in 1H 2025, with interim data expected in 2H 2025.
    • ABS-201 (antibody for hair loss): Preclinical stage, targeting a massive global market valued at $16 billion by 2030.
    • ABS-301 (immuno-oncology candidate): Focused on solid tumors, with efficacy data due in 1H 2025.
  3. While these programs are early-stage, the upside potential is enormous if even one succeeds.
  4. Potentially Undervalued with Room to Run With a market cap of $435 million, ABSI looks undervalued, especially given its partnerships and pipeline.

How We’re Playing ABSI

We’re approaching ABSI as a high-risk, high-reward opportunity. This isn’t a blue-chip stock—it’s a speculative microcap, so position sizing and allocation discipline are critical.

The Trade Strategy

We’re selling puts to either own ABSI shares at a lower cost or collect premium if the trade doesn’t get assigned.

  • Why Sell Puts? Selling puts allows us to take advantage of the stock’s volatility while controlling our risk. If assigned, we’ll own ABSI shares at a significantly lower price, giving us a favorable cost basis. Otherwise, we’ll pocket the premium and move on to the next trade.
  • Key Rule: Only sell puts if you’re comfortable owning the shares at your adjusted cost. This is speculative, and biotech microcaps are not for the faint of heart.

Risks to Consider

This is a speculative trade, and there are significant risks:

  • Early-Stage Pipeline: ABSI’s programs are mostly preclinical, with no guarantees of success.
  • Volatility: Microcap stocks like ABSI can experience wild price swings.
  • Cash Burn: While the AMD investment extends ABSI’s runway, it’s still burning cash at a high rate.
  • Sector Sentiment: Biotech stocks are often highly sensitive to news, both good and bad.

Your Action Plan

ABSI represents a speculative opportunity with massive upside potential. The AI revolution in biotech is real, and companies like ABSI are poised to lead the charge.

With AMD’s backing, a promising drug pipeline, and a cheap valuation, ABSI has all the ingredients for a big move.

But let me be clear: This is not a trade to go all-in on. Proper allocation and risk management are absolutely essential here. Biotech microcaps are volatile, and ABSI is no exception.

If you’re ready to play, position size accordingly, and only trade what you’re willing to lose.

I established a position in ABSI earlier this week.

I’m not sharing the strike price or expiration here, but Catalyst Cashouts Live subscribers already know the details.

This isn’t a “buy and hope” trade—it’s a strategic setup designed to limit downside while taking advantage of the upside potential. But timing and execution are critical.

If you want to know exactly how I’m positioning myself for this trade—and others like it—Catalyst Cashouts Live is where you need to be.

Click here to discover how Catalyst Cashouts Live can help you uncover explosive opportunities just like this.

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