Josh Brown's AI Detox Strategy: Incyte and Biogen Emerge as Investment Picks

Josh Brown, CEO of Ritholtz Wealth Management, advised long-term investors to step away from AI and data center focus. Highlighting Incyte (NASDAQ:INCY) and Biogen (NASDAQ:BIIB) in his 'Best Stocks in the Market' list, Brown promoted a shift away from the current 'AI Capex world.' Incyte develops drugs for blood cancers, solid tumors, and inflammatory skin diseases. The company saw a 38% year-over-year revenue increase and a 40% jump in net product sales in the latest quarter, exceeding Wall Street expectations. Jakafi, a pill treating two blood cancers, saw 7% sales growth, while Opzelura, a skin cream, saw 24% sales growth after removing one-time benefits. Incyte raised its fiscal 2026 sales guidance by 7% and lifted the Opzelura outlook by 40%. However, the risk of Jakafi losing exclusivity in Europe in 2028 remains a concern. AbbVie's approval of Rinvoq could pressure Opzelura's European vitiligo business. Incyte aims for $3 billion to $4 billion in net sales from its portfolio by 2030. Brown sees Incyte as a long-term value play due to its expanded drug pipeline and potential catalysts.

Market reactions to this shift will depend on factors like Incyte's ability to mitigate risks from Jakafi's exclusivity loss and the success of new launches. The ECB's monetary policy and Eurozone inflation trends could also influence demand for such companies.