An article from the Brookings Institution suggests that “whoever leads in artificial intelligence in 2030 will rule the world until 2100.” This is a big statement and underscores the importance of AI in the coming decade. It therefore goes without saying that AI stocks will remain in focus in the coming years.

Another research estimates that the potential contribution to the global economy from AI will be $15.7 trillion by FY2030. The greatest economic gain from AI will be from China followed by North America.

AI has application across industries. However, an emerging area of AI application is in the healthcare industry. It’s estimated that by FY2026, “AI applications can potentially create $150 billion in annual savings for the US healthcare economy.” The application of AI within the healthcare industry includes robot-assisted surgery, virtual nursing assistants, dosage error reduction and connected machines among others.

Therefore, healthcare stocks with a focus on artificial intelligence are attractive for the coming decade. Let’s talk about four healthcare stocks that stand to benefit from the rising adoption of AI and robotics in the healthcare industry.

• Butterfly Network (NYSE:BFLY)
• Nvidia Corporation (NASDAQ:NVDA)
• Microsoft Corporation (NASDAQ:MSFT)
• Medtronic (NYSE:MDT)

AI Stocks: Butterfly Network (BFLY)

BFLY stock was listed in February 2021 through a SPAC business combination. After touching highs of $29.1, the stock currently trades at $10.59. This looks like an attractive entry point.

As an overview, Butterfly Network is a digital health company and specializes in ultrasound imaging. A case study from Amazon Web Services points out the company’s differentiating factor.

First and foremost, “Butterfly iQ offers ease of use, leveraging artificial intelligence for an intuitive ultrasound experience.” Furthermore, the ultra-sound device is of the size of a smartphone and is 80% less expensive as compared to previous portable devices.

For Q1 2021, the company reported revenue of $12.4 million, which was higher by 43.5% on a year-on-year basis. Butterfly is already expanding footprint in the cosmetic and plastic surgery market.

In addition, the company has launched iQ Vet, which is for the global Veterinary Imaging opportunity. The company believes that the addressable market for iQ Vet is $450 million by fiscal year 20215.

Clearly, there are ample growth opportunities. The company expects to clock revenue of $78 million for FY2021. With a big global addressable market and strong top-line growth, BFLY stock seems attractive at current levels.

AI Stocks: Nvidia Corporation (NVDA)

NVDA stock is also among the top AI stocks to consider. The company provides AI solutions for various industries, including healthcare.

In April 2021, Nvidia announced that it has partnered with AstraZeneca (NASDAQ:AZN). The partnership is for “transformer-based generative AI model for chemical structures used in drug discovery.” Carestream Health, a manufacturer of medical imaging systems, is also investigating the use of Nvidia’s embedded AI platform for medical devices.

Nvidia is also making inroads in the healthcare industry by nurturing AI focused healthcare start-ups. Currently, Nvidia Inception is nurturing over 1,000 healthcare start-ups. By investing in these growth companies, Nvidia is ensuring that it’s ahead of the curve in healthcare innovation.

Example: With Covid-19 in focus, Nvidia Inception’s partner “DarwinAI developed a new AI model to detect COVID-19 in CT scans with 96% accuracy.”

With the pandemic driving bigger investments and focus on the healthcare sector, Nvidia is making the right moves.

NVDA stock has been sideways in the last six months. I believe that this is a good opportunity to accumulate. With some of the other focus areas including energy, robotics and autonomous driving, the stock is a potential long-term value creator.

AI Stocks: Microsoft Corporation (MSFT)

In the coming years, Microsoft is likely to be another dominant player in the field of artificial intelligence. MSFT stock is also among the top names to consider among healthcare AI stocks.

In April 2021, Microsoft announced the acquisition of Nuance Communications (NASDAQ:NUAN) for a consideration of $19.7 billion. According to the acquisition press release, “Nuance is a pioneer and a leading provider of conversational AI and cloud-based ambient clinical intelligence for healthcare providers.”

It’s worth mentioning here that Nuance’s solutions are used by 90% of hospitals and 10,000 healthcare organizations globally. Clearly, with the acquisition, Microsoft will make big inroads in the healthcare AI segment. Some of the key solutions offered by Nuance include documentation, diagnostics and omni-channel patient engagement solutions.

Another point to note is that Microsoft has already established some presence in healthcare AI prior to the acquisition. As an example, in October 2019, Microsoft and Novartis (NYSE:NVS) partnered for AI backed drug discovery and development. The company has also partnered with AstraZeneca for advancing AI in healthcare.

Therefore, the stock is worth considering among AI stocks with a focus on the healthcare sector. It also goes without saying that MSFT is a quality stock to hold in the long-term portfolio.

Medtronic (MDT)

MDT stock is another attractive name among AI stocks in the healthcare industry. At a forward price-to-earnings-ratio of 22.57 and a dividend yield of 1.8%, the stock looks attractive.

GI Genius intelligent endoscopy module is being used for increased adenoma detection rate using AI-assisted colonoscopy. As a matter of fact, GI Genius is the first and only approved AI system for colonoscopy. With colorectal cancer being the third most common form of cancer globally, the company has a big addressable market.

Medtronic has also been active on the inorganic growth front. In November 2020, the company acquired Medicrea. The latter is an AI-enabled spinal surgery company. Earlier in FY2020, the company had also acquired Digital Surgery, which is an AI-powered surgical stimulation platform.

It’s worth noting that Medtronic has delivered sustained positive free cash flows. This gives the company ample financial flexibility for pursuing further inorganic growth. In addition, investment in research and development is likely to remain strong. Overall, MDT stock is worth holding for the long-term for dividend growth as well as stock upside.

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

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.