GENB is a high-risk investment due to significant cash burn and extreme valuation multiples, despite Nvidia's recent stake; ranked low by the speaker.

Uh, this stock really, I feel hints at where Jensen Huang might be seeing the next frontier of AI in drug discovery with Generate Biomedicine, ticker symbol GENB, GenB, which Nvidia just recently picked up around $14 million worth.

Yet, that's still only about uh, 0.02% of their portfolio. That's how big they are. But, you know, compared to the billions that they spend on that Nvidia spends on semiconductors, uh, $14 million here might sound like pocket change for Nvidia, but investing directly into a clinical stage biotech is actually a pretty big signal to track.

See, Generate is pioneering what they call programmable biology, where instead of the old pharma methods of randomly testing thousands of compounds and hoping that one of them works.

Well, they instead use machine learning models to design everything from scratch and then digitally test how these molecules will interact with a disease before it ever even hits a physical lab, which is designed to drastically cut down the time and the billions of dollars spent in clinical trials.

Now, right now, their lead candidate, GB0895, is an asthma and COPD treatment that is already in phase three trials. And what makes it so unique is that it's designed to be injected just twice a year, boasting a nearly

Now, on top of that, they have a completely separate oncology program entering phase one that acts as a neutralizer, basically capturing the toxic payloads from other chemotherapy drugs to stop much of the severe side effects. That could be a real game-changer.

That's pretty breakthrough stuff, but unfortunately for investors, the company is still burning through huge amounts of cash and posted a net loss of over $60 million last quarter alone.

As a result, their valuation metrics are sky-high where despite only climbing about 26% since IPO, their forward price-to-sales ratio is still over 1,000% higher than the healthcare sector.

And in the future, this will likely come down dramatically, especially if any of their promising drugs are able to reach market, which is a very real possibility, of course. And certainly having the trust and backing of Nvidia leads to, you know, much of that credence, too.

But for me, I already own too many biotechs as it is, and this one is very likely one of the riskiest options of our list today. So, I'm going to rank them pretty low for now at number six until we see the other holdings and run through them.