Research

Healthcare is no longer trading as a simple defensive substitute for expensive technology. The 2026 rotation is increasingly an innovation-and-capital-cycle trade: clinical validation, large-pharma pipeline replenishment, a reopened biotech financing window, regulatory modernization and aging-driven demand are reinforcing one another. AI compute is an important productivity catalyst, but the tape argues that it is not the primary cause of the rotation. The opportunity looks durable, but increasingly selective across subsectors.