AI is about to make a huge splash in the healthcare sector. We’re talking life-saving drugs and medical devices delivered faster and more efficiently, ultimately revolutionizing the way healthcare works. With the global AI-in-healthcare market set to skyrocket to over $100 billion later this decade, it’s time for investors to pay attention to the companies leading the charge. Let’s take a look at two top stocks you should consider snatching up now.
1. Johnson & Johnson
Pharmaceutical giant Johnson & Johnson (JNJ) has been dabbling in the AI game for a while now. Back in 2021, the company already had its sights set on AI, with a whopping 48 patents linked to the technology filed in the last quarter of that year—more than any other healthcare company, according to GlobalData.
J&J’s Janssen Pharmaceuticals is utilizing AI throughout the drug discovery and manufacturing process, potentially helping researchers identify the best molecules for treatments and streamlining production. They’re even exploring an AI technique that could predict toxicity before a clinical trial starts.
With billions of dollars in revenue and profit, J&J has the resources to go big on AI. They’ve already invested $3.6 billion in R&D in the first quarter of this year alone, making it clear that they’ve got their eyes on the AI-in-healthcare prize. Trading at just 15 times forward earnings estimates, now’s the perfect time to jump on the J&J bandwagon.
2. Medtronic
Medical device manufacturer Medtronic (MDT) is all-in on AI, viewing it as the key to personalized healthcare. Their UNID Adaptive Spine Intelligence platform is a prime example, using data from thousands of procedures and machine learning to predict patient outcomes and continually improve the system.
Medtronic’s GI Genius tool for endoscopy is another feather in their AI cap, helping doctors detect precancerous tissue earlier. Thanks to a partnership with Nvidia, third-party developers can now create and test AI applications that could eventually run on the GI Genius platform.
Investing heavily in R&D, Medtronic is poised to make serious strides in the AI healthcare revolution. Although the company has struggled with slowing growth, their focus on AI, coupled with streamlining processes and acquisitions, could be the catalyst for a share-price rebound.
With a 14% increase in shares so far this year and trading at just 17 times earnings, Medtronic is a reasonably priced option for investors looking to capitalize on the AI healthcare boom.
The bottom line? AI is about to make a massive impact on healthcare, and companies like Johnson & Johnson and Medtronic are leading the charge. By investing in these forward-thinking businesses, you’re not only cashing in on the AI revolution, but you’re also supporting companies that could potentially save lives and change the face of healthcare as we know it. And that’s a win-win in my book.
