Illumina, Inc. (ILMN): A Bull Case Theory

We came across a bullish thesis on Illumina, Inc. (ILMN) on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on ILMN. Illumina, Inc. (ILMN)'s share was trading at $88.13 as of 12^th June. ILMN’s forward P/E was 20.75 respectively according to Yahoo Finance.

Illumina stands as the dominant force in genetic sequencing, holding approximately 80% market share in a rapidly evolving field. The company provides sequencing- and array-based solutions that are foundational to a wide array of genetic and genomic applications. Despite recent pressure on its share price, Illumina’s core fundamentals remain strong, supported by a healthy balance sheet and a resilient business model.

A key long-term growth driver lies in the expanding use of its platforms by other companies to develop advanced tests, particularly in cancer screening and early detection. This ecosystem effect increases demand for Illumina’s technology and creates significant optionality as innovation accelerates across genomics.

Near-term concerns, including softer end-market demand, geopolitical risks related to China, emerging competition from Roche, and potential NIH funding constraints, have contributed to investor hesitation. However, these headwinds appear transitory when weighed against the company’s entrenched market leadership and the structural tailwinds driving increased adoption of sequencing technologies.

The pullback in valuation offers an attractive entry point into a high-quality business positioned at the forefront of precision medicine and personalized healthcare. Illumina’s scale, trusted technology, and embedded presence across research and clinical workflows form a durable competitive advantage that is not easily replicated.

For long-term investors, the current dislocation in price presents a compelling opportunity to own a mission-critical platform company poised to benefit from the secular expansion of genetic testing. With multiple catalysts for renewed growth and a leading role in enabling the future of medicine, Illumina offers strong upside potential from a temporarily depressed base.

Previously, we covered a bullish thesis on Illumina (ILMN) by Ocean Road Capital on Substack that highlighted how divesting GRAIL refocuses the company on its core strengths in sequencing, with cleaner financials, reduced costs, and margin expansion potential.

Illumina, Inc. (ILMN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Illumina, Inc. (ILMN) at the end of the first quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of ILMN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.