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.
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 (NASDAQ:RXRX) 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 (NYSE:BFLY) 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 (NASDAQ:LNTH) 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 (NASDAQ:LNTH), 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.
While we acknowledge the potential of LNTH 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 LNTH and that has 100x upside potential, check out our report about the cheapest AI stock.
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