Shares in both Nvidia (NVDA) and Eli Lilly (LLY) are trading higher after the companies agreed to a joint AI drug lab investment. The two companies will jointly invest $1 billion to create a lab in San Francisco focused on using AI to accelerate drug discovery, per a recent press release.“Combining our volumes of data and scientific knowledge with NVIDIA’s computational power and model-building expertise could reinvent drug discovery as we know it,” said Lilly CEO David Ricks.
The investment builds on Nvidia and Lilly’s existing partnership. Indeed, Eli Lilly in October said it was building an AI factory with Nvidia’s AI systems to speed up drug discovery timelines. Both Nvidia and Lilly have seen growth to open the year, but the latter is up a whopping 20% in the past month. In the long run, Nvidia’s recent success will help the stock pick back up, as well as these new partnerships.
“AI is transforming every industry, and its most profound impact will be in life sciences,” said Nvidia CEO Jensen Huang in a statement Monday. Outside of the life science and medicine industry, Nvidia is also making waves in automotive. Nvidia recently announced that it plans to work with Mercedes-Benz to launch an autonomous car. At his CES 2026 presentation, Nvidia CEO Jensen Huang unveiled the chipmaker’s new Alpamayo open-source artificial intelligence (AI) models specifically designed for training autonomous vehicles and improving full self-driving capabilities. He went on to announce Mercedes as the vehicle manufacturer and receiver of these new chip models.
Furthermore, Analysts show optimism for Eli Lilly (LLY) stock as well, with price targets generally exceeding the current market price of $1085.19. Analysts largely agree on a positive outlook for Eli Lilly, with Morgan Stanley providing the highest price target at $1290, indicating significant growth potential. Cantor Fitzgerald holds a conservative stance with a target of $985, but is the most accurate historically.