In this article, we discuss the 10 trending AI health stocks.
According to Statista Market Insights, the worldwide artificial intelligence (AI) market is projected to reach a size of $184 billion in 2024. With a compound annual growth rate (CAGR) of 28.46% between 2024 and 2030, the market is expected to expand significantly, reaching a total value of $826.70 billion by 2030. In a global comparison, the United States is set to dominate with the largest market size, valued at $50.16 billion in 2024, leading the adoption and innovation in AI technology.
The global AI healthcare market is experiencing rapid expansion as well, driven by advancements in machine learning, automation, and precision medicine. With a market size of around $15.4 billion in 2022, it is projected to grow at a compound annual growth rate (CAGR) of 37.5%, reaching over $187 billion by 2030, according to estimates by Grand View Research. This growth is largely fueled by the increased adoption of AI in diagnostics, drug discovery, robotic surgery, and patient monitoring, as healthcare systems seek more efficient and cost-effective solutions.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
Reputable sources such as Fortune Business Insights and McKinsey report similar bullish projections, highlighting that AI’s applications in healthcare are expanding from diagnostics and imaging to personalized medicine and surgery. The FDA’s approval of numerous AI-driven tools in recent years underlines this shift. As AI permeates every level of healthcare, the demand for AI-enhanced devices and platforms continues to surge, resulting in massive investments, partnerships, and growing startup valuations, especially in medical imaging and AI-powered therapeutics.
According to Eric Topol, a renowned cardiologist and AI expert, AI is reshaping healthcare by enhancing precision in diagnostics and treatment. In his book “Deep Medicine: How Artificial Intelligence Can Make Healthcare Human Again,” Topol argues that AI not only boosts efficiency but also provides better patient outcomes through personalized medicine and improved medical imaging. He states, “AI has the potential to restore the human connection in medicine by allowing doctors more time to focus on their patients, while AI handles data analysis and routine tasks.” Topol envisions that AI will reduce physician burnout and transform healthcare delivery globally.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.
A robotic arm picking up a product assembly line, displaying the company’s consumer healthcare and wellness offerings.
Our Methodology
For this article, we selected trending health stocks that have AI products driving meaningful revenue gains. These stocks are also popular among hedge funds.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Trending AI Health Stocks
10. Siemens Healthineers AG (OTC:SMMNY)
Number of Hedge Fund Holders: N/A
Siemens Healthineers AG (OTC:SMMNY) has significantly invested in AI-driven healthcare technologies, particularly in diagnostics and imaging. The company’s AI-enhanced products are central to improving healthcare outcomes, with applications in radiology and cancer treatments. Their AI-based diagnostic tools streamline workflows and improve clinical accuracy, making them essential in modern healthcare.
In Q2 of fiscal year 2024, Siemens Healthineers AG (OTC:SMMNY) reported a net income of €431 million, a 297% increase from the previous year. Their overall revenue grew modestly by 1.7%, reaching €5.4 billion. The company anticipates 4.5% to 6.5% revenue growth for the fiscal year 2024, driven by its AI initiatives. Siemens Healthineers’ focus on AI in medical diagnostics and therapies continues to contribute significantly to its financial success.
9. Koninklijke Philips N.V. (NYSE:PHG)
Number of Hedge Fund Holders: 11
Koninklijke Philips N.V. (NYSE:PHG) is leveraging AI in medical imaging, diagnostics, and personalized healthcare solutions. Their AI-powered platforms, such as the AI-enabled CT and MR imaging systems, improve clinical decision-making by providing more accurate diagnoses. These AI tools are increasingly being adopted in hospitals and medical centers worldwide, driving innovation in diagnostic imaging.
In 2023, Koninklijke Philips N.V. (NYSE:PHG) generated €18.2 billion in sales, with significant contributions from AI-driven projects. However, the company faced financial pressures, reporting a net loss of €463 million, due in part to restructuring efforts. Despite this, the diagnosis and treatment divisions, which grew by 11.1%, have shown promise. Philips’ AI-driven healthcare solutions are pivotal in driving future revenue growth, particularly as AI applications in diagnostics continue to expand globally.
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