Kepler Cheuvreux head of economics and cross asset strategy, Arnaud Girod, recommends gaining or growing exposure to healthcare stocks if you’re concerned about an AI bubble popping in 2026.
Experts, including the “Big Short” investor Michael Burry, have sounded the alarm on valuations turning overly stretched for artificial intelligence stocks in recent months.
But healthcare offers “the exact opposite” to investors heading into the new year, Girod told CNBC in an interview today. In fact, the sector may be “the ultimate hedge” against an AI correction, he added.
Why are healthcare stocks a hedge against AI correction
According to Arnaud Girod, healthcare firms are structurally insulated from risks of AI disruption.
Unlike tech firms whose business models hinge on rapid innovation cycles, healthcare franchises are anchored in essential demand and regulatory frameworks.
On CNBC, he recommended that investors seek stocks that “won’t be challenged by AI disruption” but are capable of leveraging the technology for productivity gains.
AI is already helping drugmakers streamline clinical trials, reduce costs, and accelerate innovation. This dual dynamic – protection from disruption and potential efficiency upside – makes healthcare stocks uniquely positioned as a hedge.
In a market where artificial intelligence drives nearly 40% of US equity performance, healthcare offers stability, resilience, diversification, and durability, Girod noted.
Girod is particularly bullish on European healthcare stocks
Kepler Cheuvreux is particularly constructive on European healthcare stocks heading into 2026.
Its senior strategist recently upgraded the EU-based healthcare names to “strong overweight” – citing improved visibility for pharmaceutical companies after years of policy and tariff headwinds.
The firm’s quarterly playbook emphasized that demographic trends such as aging populations and rising obesity rates provide long-term structural support to the European healthcare stocks.
With tariffs less threatening and drug pricing reforms turning out milder than feared, Girod sees renewed momentum ahead.
A name he’s particularly bullish on is BB Biotech (SWX: BION) – a specialized vehicle that offers concentrated access to innovative biotech names.
Kepler recommends BB Biotech for specialized exposure
BB Biotech is a top pick among Kepler Cheuvreux experts due to its disciplined investment model and track record.
BION targets a 15% annual return by investing globally in fast-growing biotech firms developing breakthrough therapies. It allocated up to 10% to private firms as well, enabling early exposure to promising technologies.
Strengths include its evergreen structure, history of early bets on transformative drugs, and robust due diligence process. A healthy dividend yield of 3.93% makes it even more attractive for income-focused investors.
According to Arnaud Girod, BION embodies the healthcare sector’s resilience and upside, making it a strategic hedge against AI-driven market turbulence.
For investors seeking diversification, stability, and long-term growth potential, it represents a compelling opportunity to balance risk while capitalizing on innovation.
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