Is Eli Lilly Starting an Nvidia-Style Run?
Nvidia offered investors a nearly certain path to gains over the past few years. As the leader in the artificial intelligence (AI) chip market, the company generated explosive revenue growth, and its innovation suggested that this momentum could keep on going over time. As a result, investors piled into the stock, and it rose more than 400% over the past three years.
Pharmaceutical giant Eli Lilly (NYSE: LLY) has a few things in common with this tech giant. First, it's also operating in a high-growth field and one that is set to advance in the years to come: Here, I'm talking about weight loss drugs. This market is on track to reach nearly $100 billion by the end of the decade. Also like Nvidia, Lilly dominates its target market. Lilly holds 60% of the U.S. GLP-1 drug market right now, well surpassing former leader Novo Nordisk. Finally, like Nvidia, Lilly focuses on innovation and expects that to continue driving its leadership -- the company just launched a new weight loss drug and recently reported strong results from clinical trials of a late-stage candidate.
Meanwhile, even Lilly's stock performance has looked like that of Nvidia recently. Lilly shares soared more than 18% in the month of May. Is Eli Lilly starting an Nvidia-style run? Let's find out.
Source Fool.com
