Gilead Sciences, Inc. (GILD): A Bull Case Theory

We came across a bullish thesis on Gilead Sciences, Inc. on Disruptive analytics’s Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on GILD. Gilead Sciences, Inc.'s share was trading at $141.95 as of January 30th. GILD’s trailing and forward P/E were 21.60 and 15.87 respectively according to Yahoo Finance.

Gilead Sciences (GILD), historically a leader in HIV and hepatitis C treatments, is now positioning oncology as its next growth engine through a strategy focused on licensing and targeted acquisitions rather than large-scale buyouts. The company’s approach emphasizes “precision oncology,” matching therapies to patients whose tumors carry specific genetic vulnerabilities, which can enhance efficacy and justify premium pricing.

A recent agreement with Repare Therapeutics exemplifies this strategy, expanding Gilead’s pipeline in DNA‑repair-targeted cancer therapies. If its existing oncology drug Trodelvy achieves projected growth and multiple licensed programs reach commercialization, analysts estimate that oncology could contribute several billion dollars in annual revenue by the latter half of the decade, gradually reducing Gilead’s reliance on its mature and highly profitable HIV portfolio. The company’s disciplined focus on selective licensing deals and smaller acquisitions mirrors a broader trend among large, cash-generating pharmaceutical businesses facing patent expirations.

By strategically investing in RNA therapies, in vivo cell therapies, and long-acting antivirals, Gilead aims to secure multibillion-dollar revenue streams extending into the early 2030s. This model not only mitigates risk associated with large acquisitions but also allows the company to adapt quickly to emerging scientific opportunities while maintaining strong cash flow from existing franchises.

With the combination of an expanding oncology footprint and ongoing innovation in high-value therapeutic areas, Gilead presents a compelling investment case. Its pipeline strategy, coupled with the continued cash generation from established franchises, positions the company to sustain growth and potentially unlock significant upside for shareholders over the next decade, offering an attractive risk/reward profile.

Previously, we covered a bullish thesis on Gilead Sciences, Inc. (GILD) by Disruptive Analytics in February 2025, which highlighted the company’s resilience amid headwinds from the Inflation Reduction Act, a strong dollar, and declining COVID-related hospitalizations, with cost discipline sustaining profitability. GILD’s stock price has appreciated by approximately 36.38% since our coverage as the thesis played out. Magnus Ofstad shares a similar focus on GILD but emphasizes its pivot to precision oncology and targeted licensing as a long-term growth driver.

Gilead Sciences, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held GILD at the end of the third quarter which was 71 in the previous quarter. While we acknowledge the potential of GILD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.