In this article, we explore the 10 Best Medical AI Stocks to Buy Now.
Artificial intelligence has driven significant gains in the equity market over the past two years. While technology giants have led AI innovations, the technology’s ability to analyze large datasets has also made it essential in medical diagnostics.
Therefore, the use of generative and agentic AI is helping reduce diagnostic errors, prevent unnecessary costs, improve patient outcomes, and, most importantly, enhance drug development. AI has also enabled devices for more precise measurement and accurate diagnosis.
Likewise, there is a proliferation of AI chatbots people use to seek guidance on ailments. According to OpenAI, more than 200 million people ask ChatGPT health and wellness questions every week.
Beyond direct patient care, the technology is also helping address career dissatisfaction and burnout in the healthcare sector.
“All the evidence suggests that AI is a fantastic complement, and we should be encouraging the adoption of these tools because of what they can do for the experience that we all have in health care,” said Steve Beard, CEO of health-care education company Adtalem Global Education.
According to J.P. Morgan & Co.’s annual health care conference earlier in the year, artificial intelligence is well-positioned to encourage investment in the health ecosystem. The sentiments came as technology giants increasingly pour money into AI tools designed to streamline healthcare bureaucracy. According to PwC, AI could empower pharmaceutical companies to tap into a lucrative US$ 868 billion opportunity by 2030.
“We’re approaching the dawn of medical ‘superintelligence’ – the moment when affordable, world-class medical knowledge and support is at your fingertips whenever you need it,” commented Mustafa Suleyman, the CEO of Microsoft AI.
Medical AI stocks are showing strong performance in enhancing drug discovery, diagnosis, and operational AI integration. The outlook for Key players focusing on precision medicine and AI-enabled robotic surgery remains positive and is expected to grow significantly.
Our Methodology
To compile our list of the 10 best medical AI stocks to buy now, we used financial media reports, healthcare-focused ETFs, and the Finviz screener to identify healthcare stocks. We then compiled an initial list of healthcare companies using AI in their products, services, or operations. Next, we picked out stocks with at least 10% price upside potential as of April 16. From this pool, we selected 10 stocks that are popular with elite hedge funds based on the InsideMonkey database as of Q4 2025. The final list ranked the stocks in ascending order by the number of hedge fund investors in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Medical AI Stocks to Buy Now
10. Simulations Plus Inc (NASDAQ:SLP)
Number of Hedge Fund Holders: 21
Upside Potential: 66.43%
Simulations Plus Inc (NASDAQ:SLP) is among the best medical AI stocks to buy now. On March 26, Simulations Plus announced collaboration programs for AI-enabled modeling in drug development. Simulations Plus uses AI to help scientists increase efficiency in their modeling workflow.
The company said three large pharmaceutical companies were participating in its collaboration programs. Back in January, during the Simulations Plus investor day event, CEO Shawn O’Connor noted that for AI to fulfill its potential in drug development, it needs to be delivered responsibly, be grounded in validated science, and integrated into real workflows.
Simulations Plus says that companies participating in its collaboration programs will integrate its AI agents directly into their modeling workflows. The company favors a deployment approach that infuses AI into the complete system rather than offering it as a standalone capability.
For its fiscal Q2 2026 ended February 28, Simulations Plus delivered financial results that surpassed expectations. The results, which were released on April 10, showed EPS of $0.35, which improved from $0.31 in the prior year and beat the consensus estimate of $0.31.
Revenue rose 8% YoY to $24.3 million and came above the consensus forecast of $21.66 million. The company reported sales growth in both its software and services segments. The software business accounts for 60% of total revenue, with the rest coming from the services business.
For the fiscal 2026 full-year, Simulations Plus anticipates revenue in the band of $79 million to $82 million, suggesting a potential growth of up to 4%. It expects adjusted EPS in the range of $0.75 – $0.85.
Simulations Plus Inc (NASDAQ:SLP) provides modeling and simulation software used by pharmaceutical and biotechnology companies. Simulations Plus also offers consulting services. Its solutions are aimed at helping scientists to speed up drug development and reduce costs.
9. Schrodinger Inc (NASDAQ:SDGR)
Number of Hedge Fund Holders: 26
Upside Potential: 51.33%
Schrodinger Inc (NASDAQ:SDGR) is among the best medical AI stocks to buy now. Schrodinger Inc (NASDAQ:SDGR)’s management presented at the 2026 KeyBanc Capital Markets Healthcare Forum on March 17. The presentation covered the company’s strategic direction, with the management discussing a shift to hosted software contracts and leveraging AI to expand the user base.
The forum heard that Schrodinger aims to shift 75% of its software contracts to hosted models within three years. The management explained that the shift to hosted contracts is a response to customer demand for cloud-based solutions. At the same time, Schrodinger is working with Anthropic and other AI companies to integrate AI into its platform. It says adding AI features will help enhance user efficiency.
For Q4 2025, Schrodinger delivered revenue of $87.2 million, which declined 1.2% YoY and beat the forecast of $83.65 million. Drug discovery revenue more than doubled YoY to $18 million, even as software revenue decreased 13% due to a shift in recognition.
Schrodinger is using AI to give biotech companies better software tools to speed up drug discovery and reduce drug research costs. As part of this effort, Schrodinger announced on January 9 a partnership with Eli Lilly to offer an AI-powered biotech software platform. This arrangement involved Schrodinger integrating Lilly’s AI-driven TuneLab platform into its cloud-based LiveDesign platform.
TuneLab is used by biotech companies to develop drugs as it provides AI-powered drug discovery models that draw on many years of research data. With this arrangement, Schrodinger clients can now access TuneLab capabilities directly on the LiveDesign platform.
Schrodinger Inc (NASDAQ:SDGR) develops software and computational tools used in drug discovery and material science. Its solutions help pharmaceutical, biotech, and industrial companies to accelerate their programs and cut costs. Schrodinger is headquartered in New York but serves clients worldwide.
