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 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’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 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.
8. Recursion Pharmaceuticals Inc (NASDAQ:RXRX)
Number of Hedge Fund Holders: 29
Upside Potential: 94.44%
Recursion Pharmaceuticals Inc (NASDAQ:RXRX) is among the best medical AI stocks to buy now. On March 31, Recursion moved to supercharge its AI-driven drug discovery platform through an expanded partnership with Citeline. Citeline is a leading provider of data, analytics, and insights to companies in the life sciences and pharmaceutical industries.
As part of the expanded partnership, Recursion will add Citeline’s real-world data capabilities to its platform. This integration is intended to improve clinical trial design and development decisions. Recursion uses artificial intelligence to reduce the time and cost of developing new medicines. It’s focused on developing treatments for cancer and rare diseases, among others.
The company doesn’t have a product on the market yet, but it has a large pipeline of potential drug products. Some are wholly owned projects, while others are partnered programs involving major drug makers such as Roche, Merck, Bayer, and Sanofi.
In February last year, Bloomberg reported that Recursion was considered an Amazon Prime-like subscription sales model for its drugs when they hit the market. Under this model, companies could pay a fixed monthly fee to access Recursion’s collection of medicines regardless of the price of each drug. This approach could ensure revenue stability for the company.
At the end of 2025, Recursion had received more than $500 million in milestone payments on its partnered programs. It estimates future potential milestone payments at more than $300 million. The company closed 2025 with $754 million of cash and cash equivalents, enough to fund its operations into early 2028.
Recursion Pharmaceuticals Inc is an American clinical-stage biotechnology company based in Salt Lake City, Utah. The company uses a combination of artificial intelligence, machine learning, and other advanced systems to accelerate drug discovery and development.
7. Butterfly Network Inc (NYSE:BFLY)
Number of Hedge Fund Holders: 30
Upside Potential: 34.35%
Butterfly Network Inc (NYSE:BFLY) is among the best medical AI stocks to buy now. The stock has soared more than 90% over the past six months.
On March 30, Butterfly Network announced that it secured FDA approval of its AI-powered handheld ultrasound tool for estimating gestation age. The company says this tool delivers results in under two minutes. The AI model powering this device was trained on millions of ultrasound images drawn from diverse clinical settings and patient populations.
Butterfly says this tool is designed to help clinicians make faster decisions in emergency situations or rural clinical settings. The tool integrates into Butterfly’s mobile app. With FDA approval, Butterfly sees the AI tool expanding access to maternal care in underserved areas. Butterfly says that there remains a significant gap in access to prenatal imaging both in rural US counties and international markets.
According to Fortune Business Insights, the global handheld ultrasound market was valued at $397.29 million in 2025 and is projected to grow to $1.13 billion by 2034. Butterfly Network is gunning for its fair share of this massive market opportunity.
In Q4 2025, Butterfly’s revenue grew faster than expected. The company posted revenue of $31.5 million, which increased 41% YoY and beat the consensus estimate of $25.6 million. Adjusted loss per share of $0.02 improved from a loss per share of $0.05 in the prior years and beat the consensus forecast of a loss per share of $0.05. Butterfly wrapped up 2025 with $150.5 million in cash.
Butterfly Network Inc makes medical imaging devices. It offers AI-powered portable ultrasound devices that work with smartphones, making medical imaging accessible to everyone in need of the service. Its primary handheld ultrasound devices iQ+ and iQ3.
6. Lantheus Holdings Inc (NASDAQ:LNTH)
Number of Hedge Fund Holders: 32
Upside Potential: 15.81%
Lantheus Holdings Inc (NASDAQ:LNTH) is among the best medical AI stocks to buy now. Lantheus Holdings Inc shares have climbed roughly 23% year-to-date and soared more than 46% over the past six months.
Lantheus is expanding its product portfolio amid growing demand for medical imaging solutions. On March 6, the company announced FDA approval of its imaging agent PYLARIFY TruVu.
The company also awaits FDA approval for its diagnostic imaging kit called LNTH-2501. The FDA extended its review of LNTH-2501 by three months to allow it more time to look at the product’s manufacturing information. The FDA decision on the kit is expected by June 29.
Reacting to the FDA’s extended review of LNTH-2501, Citizens on March 18 reiterated its Market Outperform rating and $85.00 price target on Lantheus stock. Citizens notes that despite the extended review time, LNTH-2501 has the potential to be the only imaging kit of its kind with TPT reimbursement.
In Q4 2025, Lantheus’ revenue increased 4.0% YoY to $406.8 million. The company posted a net income of $54.1 million for the quarter, compared to a net loss of $11.8 million in the same period the prior year. Lantheus exited 2025 with $359.1 million in cash and $750.0 million in its revolving credit line.
Lantheus Holdings Inc, based in Massachusetts, is a radiopharmaceutical company. It makes imaging agents that help in detecting and managing serious diseases. Its product, called PYLARIFY is an imaging agent used for detecting prostate cancer. Its other product, called DEFINITY, is an ultrasound-enhancing agent used to improve imaging of the heart.
5. Teladoc Health Inc (NYSE:TDOC)
Number of Hedge Fund Holders: 36
Upside Potential: 24.57%
Teladoc Health Inc (NYSE:TDOC) is among the best medical AI stocks to buy now. On March 31, activist investor Pineal Capital Management urged Teladoc to launch a share repurchase program. Pineal Capital is pushing for at least $200 million in share buybacks. Additionally, the activist investor has called on the Teladoc management to consider separating the company’s two main business segments. Teladoc’s Integrated Care segment serves employers and health plans, while its BetterHelp segment offers a mental health platform.
Notably, the Pineal Capital Management push comes after Teladoc outlined its plans for 2026. The company aims to build on the progress it made last year on strengthening the product portfolio and advancing innovation. Addressing investors in the Q4 2025 report on February 25, Teladoc CEO Chuck Divita said this year they’re focused on strengthening their ability to meet the evolving needs of their clients.
Teladoc Health Inc is integrating AI to enhance its solutions for hospitals and health systems. It has built an AI-powered workplace safety feature for healthcare settings. The company says that workplace violence is a growing challenge for hospitals, costing them more than $18 billion annually.
Teladoc also offers an AI-driven solution to help hospitals improve patient safety, such as preventing patient falls. The company says patient falls result in around $50 billion in extra medical costs for hospitals each year. Microsoft is one of Teladoc’s AI partners.
Teladoc anticipates 2026 revenue in the band of $2.47 billion to $2.59 billion. That compares to the 2025 revenue of $2.53 billion. The company exited 2025 with $781.1 million in cash and cash equivalents.
Teladoc Health Inc, headquartered in New York City, provides around-the-clock virtual medical care. It connects patients to doctors through phone and video. Through the Teladoc platform, patients can get on-demand diagnosis, chronic condition management, mental health services, and treatment for illnesses like the flu and allergies.
4. Tempus AI Inc (NASDAQ:TEM)
Number of Hedge Fund Holders: 41
Upside Potential: 46.18%
Tempus AI Inc (NASDAQ:TEM) is among the best medical AI stocks to buy now. Tempus has partnered with SoftBank, Gilead, and Merck on AI-driven drug development programs. Analysts are growing more confident in Tempus amid its expanding partnerships. On April 13, TD Cowen upgraded Tempus AI Inc to a Buy rating from Hold, though it lowered the price target to $65 from $70. TD Cowen analyst Dan Brennan pointed to the company’s strong fundamentals for the upgrade, though Brennan noted the stock has eased around 50% over the past six months.
According to TD Cowen, Tempus’ Insights business is well-positioned for accelerated growth and forecast beat in 2026. The firm also expects continued growth in Tempus’ Genomics business. Tempus’ revenue increased 83.4% to $1.3 billion in 2025. The company is anticipating 2026 revenue to be $1.59 billion, implying a growth of 25%.
The Tempus-SoftBank pact, unveiled in June 2024, is structured as a joint venture and involves Tempus bringing its AI-driven treatment and clinical trial recommendations to the Japanese market.
Japan’s AI in healthcare market size is forecast to reach $2.29 billion by 2034 from $545.3 million in 2025, according to IMARC Group estimates. Factors like the increasing need for personalized medication, growing interest in remote patient monitoring, and the growing need to accurately forecast patient results are driving the market growth.
Tempus AI Inc, based in Chicago, Illinois, offers precision medicine services. It makes use of data and artificial intelligence for this work. Although the company is primarily focused on cancer treatment, it’s expanding into areas like cardiology and infectious diseases. Tempus AI was founded in 2015 by billionaire Eric Lefkofsky.
3. iRhythm Holdings, Inc (NASDAQ:IRTC)
Number of Hedge Fund Holders: 44
Upside Potential: 69.53%
iRhythm Holdings, Inc (NASDAQ:IRTC) is among the best medical AI stocks to buy now. At the American College of Cardiology 2026 Annual Scientific Sessions on March 30, iRhythm shared analysis results that cast its cardiac monitoring service in a favorable light. The studies analyzed data from thousands of patients using iRhythm’s Zio cardiac monitoring device. The company provides cardiac monitoring devices and software that use artificial intelligence.
In one study, the analysis found that there were clinically actionable arrhythmias in 48% of patients with chronic kidney disease and 47% of patients with both chronic kidney disease and diabetes. That compared with 39% of patients with diabetes only and 35% of patients with none of these conditions. This study reviewed data from 657,147 people who received 14 days of continuous monitoring.
In a second study, the analysis showed that patients with severe obesity were 2.8 times more likely to be found with atrial fibrillation detection compared to normal or underweight patients.
On the day iRhythm shared these study results, it announced the launch of an education platform targeting healthcare professionals in cardiac monitoring. The company calls it the iRhythm Academy. iRhythm is trying to educate doctors about its cardiac monitoring products at a time when it’s targeting an expanding market. The global market for smart wearable ECG monitors, such as iRhythm’s Zio, is on course to grow from $1.98 billion in 2024 to $3.54 billion by 2030, according to Grand View Research.
iRhythm’s revenue rose 26.2% to $747.1 million in 2025. This growth was due to increased demand for Zio services. The Q4 2025 revenue of $208.9 million increased 27.1% YoY and surpassed the consensus projection of $201.8 million.
iRhythm Holdings, Inc is a digital healthcare company based in California. It offers cardiac monitoring services to help detect and prevent disease. Its portfolio includes monitoring devices and accompanying software solutions. iRhythm’s Zio cardiac monitor device is a lightweight adhesive patch worn on the chest.
2. Veeva Systems Inc (NYSE:VEEV)
Number of Hedge Fund Holders: 75
Upside Potential: 57.51%
Veeva Systems Inc (NYSE:VEEV) is among the best medical AI stocks to buy now. Wall Street is taking note of Veeva’s AI efforts, and many believe the company is moving in the right direction. On April 1, Stifel reaffirmed its Buy rating and $245 price target on Veeva Systems stock, citing the company’s AI opportunities.
Stifel renewed its bullish stance on Veeva stock after finding out that Veeva is a preferred vendor in the life sciences CRM space. The firm came to this conclusion following discussions with industry participants.
The findings showed that large pharmaceutical companies want to work with technology partners to weave AI capabilities into their platforms rather than doing it on their own. Stifel noted from the calls that even an existing Salesforce CRM customer was open to switching to a different provider.
It has embedded AI agents and AI shortcuts into its platform to help companies automate tasks and improve workforce productivity. To further build its AI capabilities, Veeva Systems announced on March 10 that it has acquired Ostro.
Ostro provides an AI-powered patient-doctor chat platform that delivers quick and 100% compliant responses. Veeva bought Ostro for around $100 million in cash and equity. Ostro will initially operate as a standalone unit but over time it will be integrated into Veeva to ensure a seamless workflow.
Veeva posted Q4 2025 financial results that exceeded expectations. Revenue rose 16% YoY to $836 million and surpassed the consensus estimate of $810.67 million. EPS of $2.06 topped the forecast of $1.93.
Veeva Systems Inc, founded in 2007 and based in California, provides cloud software, data, and analytics to the life sciences industry. Its solutions help drug and medical device companies to develop, test, and market their products faster and more efficiently. Veeva Systems customers include Bayer, Eli Lilly, Gilead Sciences, and Merck.
1. Boston Scientific Corp (NYSE:BSX)
Number of Hedge Fund Holders: 108
Upside Potential: 54.91%
Boston Scientific Corp (NYSE:BSX) is among the best medical AI stocks to buy now. Piper Sandler reaffirmed its Overweight rating on Boston Scientific Corp stock on April 6. This followed the release of the Champion-AF study results of Boston Scientific’s Watchman heart implant. The firm renewed its bullish stance on Boston Scientific stock after hosting a discussion with a doctor who performs high-volume heart implants. That discussion centered on cardiac device usage.
Piper Sandler expects Watchman sales to increase 20% annually for the next several years. It added that this should contribute around 200 basis points to Boston Scientific’s topline growth.
In the Champion-AF study, Boston Scientific’s Watchman heart implant met all primary and secondary endpoints regarding safety and efficiency. That study evaluated the Watchman device as a first-line treatment option for stroke risk reduction. There are more than 59 million people globally with a heart rhythm disorder who could benefit from the Watchman implant.
In 2025, Boston Scientific’s net sales grew 19.9% to $20 billion, and adjusted EPS came to $3.06, compared to $2.51 in the prior year. Boston Scientific CEO Mike Mahoney said 2025 was another exceptional year for the company, noting that they exceeded their goals. The company expects the growth to continue, forecasting topline growth of at least 10.5% in 2026.
Boston Scientific Corp is an American multinational biotechnology and biomedical engineering company. It makes medical devices used to address cardiovascular, respiratory, and neurological conditions. Boston Scientific was founded in 1979 and is based in Massachusetts.
