Moderna gave investors a scare as its stock plunged on Thursday. But it's still one of the hottest biotechs this year. And it's hardly alone – the sector is on a roll and looks poised for more gains.

The iShares Biotechnology ETF (IBB) is up 24% through October 23, building on a 28% gain in 2025. Two dozen of the ETF's 233 holdings have more than doubled year-to-date. Moderna leads the pack with a 587% surge — even after an 18% decline following a leak of clinical data for its cancer vaccine (which was actually positive).

Analysts say a new biotech cycle is underway, fueled by clinical trial results, M&A activity, and promising technologies such as genomics, mRNA — and AI.

"We're in the midst of a powerful innovation cycle," said John Hall, portfolio manager of the T. Rowe Price Biotechnology ETF .…