Artificial intelligence (AI) is revolutionizing numerous industries, and one of the most impactful transformations is happening in the field of oncology — the study and treatment of cancer. As cancer remains a leading cause of mortality worldwide, combining AI technology with oncology has the potential to drastically improve diagnosis accuracy, personalize treatments, and ease the burden on healthcare systems. According to a report by Mordor Intelligence, the AI market in oncology is projected to expand from around $1.98 billion in 2025 to a staggering $9.04 billion by 2030. This impressive growth rate, with a compound annual growth rate (CAGR) of 35.51%, reflects how deeply AI is embedding itself into cancer-related healthcare practices.
A major reason AI is such a game changer in oncology is its ability to handle immensely complex datasets — something human clinicians struggle with given time constraints and the sheer volume of data. From advanced image recognition algorithms that assist in early tumor detection to personalized medicine models predicting patient responses to specific treatments, AI streamlines workflows and portends better patient outcomes. North America, primarily the U.S., currently dominates this innovative landscape, driven by heavy investment and technological infrastructure. However, the Asia-Pacific region is rapidly catching up, showcasing the globalization of AI in cancer care. These geographic trends reveal immense opportunities for investors eyeing cancer stocks with promising long-term potential, especially those already embraced by savvy hedge funds.
Delving into the investment angle, a rigorous methodology was applied to pinpoint the top cancer stocks primed for long-term gains. The process began by filtering companies with high 5-year average returns and then cross-referencing this list with hedge fund data from Insider Monkey, focusing on the number of hedge fund holders per stock as of Q4 2024. Hedge funds are institutional investors renowned for their research prowess and selective strategies, so their picks often serve as strong signals for retail investors. The combination of robust past financial performance and hedge fund endorsement offers a compelling lens to evaluate potential market winners — and it’s no coincidence that mimicking hedge fund activity has historically outperformed broader market indexes by significant margins.
One standout company emerging from this analysis is Protagonist Therapeutics, Inc. (NASDAQ: PTGX), a biopharmaceutical titan making waves with its innovative peptide-based therapies. Unlike conventional drugs, peptides are short chains of amino acids that can selectively modulate complex biological processes. Protagonist’s flagship cancer-related drug, Rusfertide, is in Phase 3 clinical trials targeting polycythemia vera (PV), a blood disorder characterized by excessive red blood cells. Rusfertide mimics the hormone hepcidin to regulate iron metabolism and aims to control hematocrit levels more effectively than traditional methods like phlebotomy, which can be invasive and cause quality-of-life issues. The company’s partnerships with pharmaceutical giants such as Takeda and Johnson & Johnson further bolster its credibility and financial strength, exemplified by upfront and milestone payments totaling hundreds of millions of dollars. Notably, Protagonist has significantly boosted its cash reserves in 2024, signaling strong operational footing.
Looking ahead, Protagonist Therapeutics is expected to release critical clinical trial data soon, including Phase 3 outcomes for Rusfertide and early 2025 data from trials involving other pipeline candidates targeting immune-mediated diseases like psoriasis and ulcerative colitis. These milestones hold considerable sway over the company’s valuation and growth prospects. Although the company posted a modest net loss in Q3 2024, revenue strides from licensing and partnerships combined with milestone payments swung the overall profitability into positive territory for the year. This pattern reflects a common biotech lifecycle where clinical development phases require upfront investment followed by substantial returns upon trial successes and drug approvals. While Protagonist ranks highly among cancer stocks for long-term investment, the burgeoning AI sector within oncology also presents intriguing alternatives. Intriguingly, some AI stocks that began 2025 on a strong note have outperformed more established cancer stocks, suggesting diversification into AI-driven healthcare could yield robust returns.
Beyond the immediate investment pointers, it’s fascinating to reflect on how AI's role in cancer care is reshaping the entire ecosystem. For example, AI algorithms today can analyze thousands of pathology slides in minutes, achieving diagnostic accuracy comparable to expert oncologists. Some AI platforms even integrate genomic data and patients’ electronic health records, enabling truly personalized treatment plans that predict therapeutic response and minimize adverse effects. Furthermore, hospitals are deploying AI-powered tools to optimize resource allocation, such as predicting patient inflows to efficiently manage chemotherapy suites and equipment. The synergy between AI and oncology is expected to accelerate as machine learning models grow more sophisticated and more extensive datasets become available. This ongoing convergence is not only a beacon of hope for millions of patients worldwide but also an exciting frontier for investors and innovators alike.
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