AI healthcare stocks can potentially revolutionize patient care as we know it.
The groundbreaking technology is expected to have a pervasive impact on the investment world, with its most profound anticipated transformations in healthcare. The technology could significantly shorten drug development timelines, enhance medical devices and refine the quality of robotic surgeries, among other elements.
AI’s advancements in the healthcare realm signal a major shift towards more efficient and highly personalized medical care. Therefore, investors looking to pounce on the potential impact of AI in the healthcare space should consider adding these stocks to their portfolios. Moreover, analysts from Markets and Markets research the healthcare market could potentially surge by 48%, reaching a staggering $148.4 billion by 2029. Furthermore, AI in healthcare could potentially save more than 250,000 lives annually, adding to the attractiveness of AI-powered healthcare stock picks.
With that in mind, AI healthcare stocks could yield multi-bagger returns for those willing to stomach the risks involved.
Medtronic (MDT)
Medtronic (NYSE:MDT) is a giant in the medical device space, with a deep pipeline covering various sectors, including diabetes, cardiovascular and neuroscience. Additionally, it is one of the needle-movers in using AI in healthcare, which sets it apart from its competition.
It has six pioneering AI products that the FDA has already green-lit. These range from the GI Genius, the first AI-powered endoscopy system for polyp detection, to the MiniMed 780G, an advanced diabetes management system.
Moreover, building on its momentum, it recently inaugurated an AI center of excellence as it looks to push the boundaries of AI applications in medical technology. Additionally, Medtronic harnesses the power of AI to add to the mission-critical nature of its healthcare offerings. On top of that, it boasts a massive levered free cash flow balance exceeding $5.46 billion, providing it the impetus to continue advancing in its AI endeavors.
Tempus AI (TEM)
Tempus AI (NASDAQ:TEM) is an AI-driven life sciences firm that just had a sizzling IPO last month. With an extensive library of clinical and molecular data, the firm has the potential to redefine oncology diagnostics through its AI applications. Moreover, the data it has gathered over the years supports its fast-growing data services business.
Lately, Tempus has made some major strides by expanding its immuno-oncology portfolio. The firm recently launched its multimodal immune profile algorithmic tests to improve its diagnostic capabilities. Additionally, its AI-powered ECG-AF device can identify patients at heightened risk of atrial fibrillation.
Looking ahead, analysts are upbeat about the healthcare firm’s growth trajectory. J.P. Morgan analyst Rachel Vatnsdal projects a substantial 33% growth in its top line through 2027, with expectations for the company to be EBITDA positive by the second half of 2025. She touts Tempus’s robust patient database, which integrates clinical and genomic data.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) rocketed to fame following the swift creation of its coronavirus vaccine. However, the rapid drop in COVID-19 vaccine sales post-pandemic presents new challenges for the firm. Nevertheless, the firm’s proactive approach offers a silver lining, particularly due to its shift towards incorporating AI in its operations.
Through its partnership with IBM, Moderna is leveraging Big Blue’s AI model, MolFormer, to efficiently predict molecular properties and fast-forward the development of mRNA-based therapies. These innovations will help significantly speed up research processes while streamlining the path to developing new treatments.
Furthermore, Moderna’s CEO, Stéphane Bancel, emphasized its commitment to leveraging AI across all facets of its operations to improve performance and efficiency. Additionally, with AI becoming increasingly important to Moderna’s workflow, the company is set to navigate current market challenges with considerable aplomb. Moreover, the market recognizes its potential, with Moderna stock gaining upwards of 19.5% year-to-date (YTD).
On the date of publication, Muslim Farooque did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
