Josh Brown Says ‘Take a Break From AI CapEx World,’ Highlights His 2 Top Healthcare Stock Picks

During a recent appearance on CNBC’s Halftime Report, Josh Brown, chief executive of Ritholtz Wealth Management, identified Incyte (NASDAQ: INCY) and Biogen (NASDAQ: BIIB) as two of his top stock picks. He emphasized that these selections are unrelated to AI and data‑center spending themes.

“We aimed to shift focus away from data centers and GPUs, taking a pause from the AI capital‑expenditure environment that has dominated for years,” Brown explained. “Our goal was to discuss companies operating outside that sphere.”

Brown favors Biogen for its robust fundamentals and consistent earnings performance.

In this piece we concentrate on Incyte, which has risen 22% year‑to‑date.

Analyzing Incyte

Brown is optimistic about Incyte, citing strong earnings momentum and a robust pipeline of roughly nine to ten drugs in various development stages, which he believes will generate multiple growth catalysts.

Incyte Corporation (NASDAQ:INCY) focuses on therapies for blood cancers, solid tumors, and inflammatory skin conditions. Its July quarterly results showed a 38% year‑over‑year increase in revenue and a 40% rise in net product sales, both surpassing Wall Street expectations.

Its flagship product, Jakafi, a tablet that treats two blood cancers and a bone‑marrow transplant complication, saw a 7% increase in sales during the quarter, while prescription fills grew 9%.

Opzelura, a topical cream, posted a 24% sales increase after one‑time adjustments were excluded.

Analysts highlight the company’s diversified portfolio; even if Jakafi loses exclusivity, Incyte expects to achieve $3 billion to $4 billion in net sales by 2030 from other products. It also raised its full‑year 2026 sales guidance by roughly 7% and increased its Opzelura outlook by about 40%.

The company anticipates roughly ten clinical data readouts in the latter half of fiscal 2026, four from registration‑level trials, potentially serving as significant catalysts.

Key Risks

Critics note that Jakafi, which still represents a substantial portion of net sales, may lose exclusivity in major markets around 2028, making future performance reliant on timely product launches and catalysts.

Increasing competition is evident; AbbVie recently obtained European Commission approval for Rinvoq to treat non‑segmental vitiligo, potentially impacting Opzelura’s European vitiligo sales.

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