Healthcare stocks shift from defensive to value plays amid tech-driven market growth.

Healthcare stocks, long underperforming compared to tech, are now seen as value opportunities for investors heavily invested in growth sectors like AI. Mizuho strategist Jared Holz highlights Merck as a prime example, with its strong Keytruda franchise and attractive valuation, offering a stable alternative to high-growth tech stocks. Meanwhile, Summit Therapeutics represents a riskier biotech play with potential catalysts ahead, including an FDA decision in late 2026. This shift suggests healthcare could balance portfolios dominated by tech and AI stocks.