In this article, we will discuss: 10 Best AI-Powered Healthcare Stocks to Buy According to Hedge Funds.
On June 9, Reuters reported that Philips’ Future Health Index survey concluded that artificial intelligence improved clinical accuracy and increased patient capacity. It also saved healthcare providers’ budgets. A research consultancy, Vitreous World, performed the survey in 10 countries between February and April, surveying 2,011 professionals and 20,085 patients. According to Philips North America CEO Jeff DiLullo, clinicians who use AI might see an additional five patients each week on average, which has an economic impact on the healthcare system. Approximately 30% of surveyed doctors stated AI has resulted in significant budget savings, while 36% said AI boosted the number of patients they treated weekly.
DiLullo told Reuters that AI will progressively transform clinicians’ jobs as healthcare experts continue to make complex medical decisions. Reuters stated that clinicians generally use artificial intelligence for administrative work like data collection and scheduling. The survey also revealed that 77% of clinicians thought AI training was still unavailable, inadequate, or inconsistent. Health insurers, including Centene, have criticized health systems’ use of AI, claiming that it has aggressively or inappropriately triggered increased reimbursement payments. Previous research showed that patients increasingly look out for AI-generated health advice, even though the technology has not proven to be more helpful than other methods for making healthcare decisions.
With that said, here are the 10 Best AI-Powered Healthcare Stocks to Buy According to Hedge Funds.
Methodology
We used screeners to identify AI-Powered Healthcare Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 60
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is among the Best Healthcare Stocks.
On June 23, RBC Capital started coverage of GE HealthCare Technologies Inc. (NASDAQ:GEHC) with an “Outperform” rating. The firm had an $80 price target on the shares. The analyst said the company gives an attractive risk-reward profile. The firm has stronger R&D spending and improved commercial execution since its 2023 separation from General Electric. It also has a solid order backlog expected to support faster growth later in 2026.
Separately, on June 9, GE HealthCare Technologies Inc. (NASDAQ:GEHC) said it will showcase its latest cloud-enabled enterprise imaging technologies at the SIIM 2026 Annual Meeting.
The corporation will showcase Genesis Radiology Workspace and InteleShare. Genesis is an approved viewer that lets doctors look at medical scans from anywhere and easily compare old and new images. InteleShare is a secure cloud system used to safely share medical images between different hospitals and clinics.
CEO of Solutions for Enterprise Imaging, GE HealthCare, Scott Miller, said connected cloud and AI-powered technologies can improve efficiency while helping providers streamline imaging workflows.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) works in the development and manufacturing of medical technology, pharmaceutical diagnostics, and digital solutions. It works through Imaging, Advanced Visualization Solutions, Patient Care Solutions, and Pharmaceutical Diagnostics divisions.
9. Veeva Systems Inc. (NYSE:VEEV)
Number of Hedge Fund Holders: 62
On June 23, Veeva Systems Inc. (NYSE:VEEV) announced that it acquired Copli and launched Veeva Falcon MLR. It made the agentic medical, legal, and regulatory content-review platform available immediately.
The firm said Veeva Falcon MLR automates reviews of promotional and medical content by checking materials against approved labels and local regulations. The corporation noted that the platform has the potential to eliminate more than 70% of manual MLR work over the next five years.
Copli CEO Jacob Scheel-Bech called the launch “a fundamental shift” in content review. He said the acquisition will help scale the company’s vision for AI-focused MLR while merging its technology with Veeva PromoMats.
Emma Hyland, vice president of Veeva Commercial Content, said the MLR process has long slowed the delivery of information to patients and physicians. She commented that Veeva Falcon MLR can shorten review cycles by automating routine work, allowing reviewers to focus on higher-value responsibilities.
Veeva Systems Inc. (NYSE:VEEV) provides cloud-based software for the life sciences market in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America.
8. Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 67
Insmed Incorporated (NASDAQ:INSM) is among the Best Healthcare Stocks.
On June 15, Mizuho lowered its price target on Insmed Incorporated (NASDAQ:INSM) to $192 from $202. It maintained an Outperform rating on the shares. The firm stated the recent selloff created a buying opportunity even though shares have fallen 29% since the company’s first-quarter report.
Mizuho found the sharp move in investor sentiment “shocking” and expressed confidence in both Insmed and BRINSUPRI.
Separately, on June 23, Insmed Incorporated (NASDAQ:INSM) announced that it appointed Samuele Butera as Senior Vice President and General Manager, Global Respiratory, effective immediately. He will lead the firm’s Respiratory Therapeutic Area, report to Chair and CEO Will Lewis, and join the executive committee.
Lewis said Butera’s commercial leadership experience would support the launch of BRINSUPRI, the potential label expansion of ARIKAYCE, and the development of the TPIP program.
Butera called it “a defining moment” for the biopharmaceutical firm. He plans to help advance BRINSUPRI, expand ARIKAYCE, and continue developing TPIP and other pipeline candidates.
Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company that produces and markets medicines for rare diseases. It focuses on the Brensocatib and Treprostinil Palmitil Inhalation Powder pipelines.
7. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders: 68
Natera, Inc. (NASDAQ:NTRA) is among the Best Healthcare Stocks.
On June 1, Reuters reported that the U.S. Supreme Court declined to hear CareDx’s appeal in its false-advertising dispute with Natera, Inc. (NASDAQ:NTRA). It left intact lower-court rulings that denied CareDx damages over claims involving kidney transplant tests.
Reuters said the justices declined to review whether the diagnostics company owed damages for allegedly misleading advertisements comparing its Prospera test with CareDx’s AlloSure test. It offered no explanation for the decision.
The report noted that US District Judge Colm Connolly overturned a nearly $45 million jury damages award in 2023 after finding no evidence that Natera, Inc. (NASDAQ:NTRA)’s statements actually misled customers. It still confirmed the jury’s finding of false advertising. The 3rd U.S. Circuit Court of Appeals later affirmed that ruling.
A Natera spokesperson said the firm was “pleased with the outcome in this case.” CareDx argued that courts should presume deception when advertising is “deliberately false,” but Natera said the appellate court correctly applied the agreed trial instructions.
Natera, Inc. (NASDAQ:NTRA) is a diagnostics company. It works in the discovery, development, and marketing of genetic testing services.
6. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 70
DexCom, Inc. (NASDAQ:DXCM) is among the Best Healthcare Stocks.
On June 23, DexCom, Inc. (NASDAQ:DXCM) announced that the FDA cleared growing use of its Stelo Glucose Biosensor beyond adults for children ages 2 and older who do not use insulin.
President and CEO Jake Leach said, “Glucose matters for everyone.” The company plans to broaden access to glucose biosensing while making preventive, customized care more accessible through a redesigned Stelo app.
DexCom, Inc. (NASDAQ:DXCM) said the updated app will begin rolling out in America in July for Apple iPhone and Android users, providing easier-to-understand glucose insights linked to food, activity, sleep, and stress.
The corporation also said it plans to launch Stelo in the United Kingdom, Australia, New Zealand, and South Korea beginning later this year and continuing into 2027.
The medical device firm said that Type 2 diabetes and related health issues are becoming more common in young people, so children and their parents who do not use insulin can now get blood sugar tracking data without needing a doctor’s prescription.
DexCom, Inc. is a medical device company that works in the design, development, and marketing of glucose monitoring systems for ambulatory use by people with diabetes.
While we acknowledge the potential of DXCM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DXCM and that has 100x upside potential, check out our report about the cheapest AI stock.
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