Unlocking the Future of Genomics: How Illumina, Inc. (ILMN) is Creating the Largest Genetic Database Through Strategic Investments

We recently explored the world of non-tech AI opportunities, highlighting where Illumina, Inc. (NASDAQ:ILMN) fits into the current landscape amid the DeepSeek selloff.

Investors are eager to find secure ways to benefit from the AI boom without diving into traditional tech stocks. Towards the end of last year, Goldman Sachs identified sectors like utilities, industrials, retail, and healthcare as key players in this trend. While firms such as NVIDIA have seen huge gains due to their AI hardware, there’s a belief that the market hasn’t fully tapped into the potential of industries that will benefit from AI advancements.

Goldman Sachs outlines four phases of the AI boom. The first phase focuses on AI chipmakers, like NVIDIA. The second phase looks at AI infrastructure, including companies in semiconductors, data centers, and cloud services, all of which have outperformed the market in 2024.

The third phase will spotlight companies that are actively integrating AI into their product lines to grow their revenues. While they may lag now, their moment is expected to arrive. Finally, the fourth phase encompasses businesses that will enjoy long-term productivity boosts from AI adoption. These firms, currently overlooked, could see their values rise over time. For instance, industrial stocks have gained nearly 30% since early 2023, with AI-focused companies seeing their values more than double. In the latest earnings calls, mentions of AI in industrial sectors jumped from 10% to over 30%. Goldman anticipates these trends will continue as efficiency from AI leads to increased earnings.

As the excitement around Chinese startup DeepSeek stirs a selloff in U.S. tech, investors are keen to monitor non-tech AI opportunities that promise significant growth. Goldman Sachs recently noted that AI-powered data centers are driving a skyrocketing demand for electricity, projected to grow by over 160% by 2030. Nuclear energy is seen as a crucial solution, along with natural gas, renewables, and battery storage.

Big tech companies have already laid groundwork for over 10 gigawatts of potential new nuclear capacity in the U.S., with three plants possibly operational by 2030. Globally, the support for nuclear power is increasing, motivated by goals set during the COP28 summit to triple nuclear capacity by 2050. Yet, there are hurdles to overcome, including labor shortages and uranium supply issues. Renewables are also expected to contribute significantly to energy production, particularly wind and solar, which will be complemented by battery storage.

Illumina, Inc. focuses on genetic and genomic analysis and is recognized for its strong operating margins. Its recent report shows a GAAP operating margin of 68.6%, highlighting effective cost management. The company is also collaborating with Regeneron to invest $139.5 million in the Truveta Genome Project, aiming to create the largest genetic database.

Currently, Illumina ranks 9th among non-tech AI opportunities amid the DeepSeek selloff. While it has potential, there are other stocks that may offer better returns in a shorter time. If you’re interested in exploring these options, consider looking into stocks that trade at lower earnings multiples.

For further insights into AI investments, check out more about the top AI stocks!

Disclosure: None.