Searching for quality undiscovered biotech stocks can be a bit like a treasure hunt. The biotech scene is full of intriguing innovators trying to progress their treatments through various clinical trials. Undoubtedly, most of the drug candidates will run into a wall at some point in the trials. It can be a long and grueling move from Phase I to the finish line.

For the biotech firms that can advance past all clinical trials and prove that a treatment is both safe and effective, the rewards could have the potential to be great. Of course, it takes a lot of time to advance a product, and there could be setbacks along the way. That’s why a diversified pipeline and a tried and tested management can help smoothen out some of the bumps along the way.

Of course, a small number of drug candidates could be “make or break” for many biotech companies, making them suitable only for risk-takers who can take a hit to the chin.

Here are three biotechs that Wall Street may not have yet discovered their full value.

Moderna (MRNA)

Moderna (NASDAQ:MRNA) is the mRNA technology innovator made famous for its COVID-19 vaccine Spikevax. While we’re all likely well familiar with the company by now, many years after the pandemic’s peak, MRNA stock seems to have been forgotten by many as vaccination rates fell.

After a steep single-day drop of 11% suffered on Wednesday, perhaps now is as good a time to rediscover the company now that so many others have thrown in the towel. The company’s mRNA pipeline is packed with promise. However, there will surely be road bumps as the biotech innovator looks to regain the ground lost in the last two and a half years.

MRNA stock slipped as the Centers for Disease Control and Prevention opted to recommend RSV shots to those 75 and older and those age 60 to 74 who are deemed “at risk.” Additionally, the Moderna RSV vaccine seems to lose efficacy over time. And just like that, Moderna’s RSV vaccine won’t be met with as much early demand as expected. I think the news, while negative, is overdone.

Intellia Therapeutics (NTLA)

Intellia Therapeutics (NASDAQ:NTLA) is a great genomics player for investors who want AI-like growth in the biotech scene. The stock has been sinking steadily lower since the initial crash of 2021 and 2022.

With a $2.2 billion market cap and a lack of profitability, Intellia stands out as a riskier play, but one that could offer growth at a very reasonable price. After shedding more than 86%, investors have scratched the name off their portfolios and watchlists.

In early June, NTLA stock spiked by a double-digit percentage on the back of solid long-term data from gene therapy aiming to treat hereditary angioedema. Getting such updates on an early-stage candidate is incredibly promising (and needle-moving).

There’s still a way to go, though. With the stock giving back much of the gain on the good news, investors may have a shot at picking up NTLA stock at below $23 per share again. Until more positive data comes to light, Intellia may be far too speculative a bet for most.

Recursion Pharmaceuticals (RXRX)

Recursion Pharmaceuticals (NASDAQ:RXRX) is a mysterious biotech firm that AI chip maker Nvidia (NASDAQ:NVDA) owns shares in. Undoubtedly, it’s a tad perplexing why a GPU maker has a $50 million investment in a mid-cap ($2.1 billion market cap) biotech company.

The investment and partnership will reportedly allow Recursion to use advanced AI models to discover new drugs. Indeed, drug discovery is perhaps the most exciting application of AI. So, why wouldn’t Nvidia want a piece of the emerging space?

Recursion will use Nvidia’s AI tools and hardware effectively to harness AI’s full power in drug discovery. I think Nvidia’s top boss, Jensen Huang, is a very smart man for collaborating with biotech innovators like Recursion.

Just because Nvidia is standing behind Recursion doesn’t mean the stock won’t be risky, though. At the time of this writing, RXRX stock is down more than 78% from its all-time high. And there doesn’t seem to be much in the way of near-term momentum to get excited about.

On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.