Nvidia–Eli Lilly Tie-Up Shows Why AI Drug Discovery Is The Next ETF Battleground

Group 1 - NVIDIA Corp. and Eli Lilly and Co. have announced a $1 billion AI co-innovation lab aimed at integrating AI into drug discovery, indicating the expansion of AI applications beyond data centers into the medical field [1][2] - The partnership is expected to enhance the commercial potential for companies providing AI computing, software, and healthcare solutions, thereby broadening the market for AI technologies [2][6] Group 2 - The development is influencing ETF investments, with a focus on capturing various layers of the AI value chain, particularly through semiconductor ETFs like the VanEck Semiconductor ETF and the iShares Semiconductor ETF, which are crucial for powering AI applications [3] - AI thematic ETFs, such as the Roundhill Generative AI & Technology ETF and the Global X Robotics & Artificial Intelligence ETF, are appealing to investors by offering diversified exposure to AI growth across sectors, including drug discovery and automation [4] - Although no specific ETF directly combines biotech and AI, interest in healthcare and biotech sector ETFs may rise if AI significantly accelerates drug development timelines, potentially increasing valuations in these sectors [5]