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.

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.

8. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 18

C3.ai, Inc. (NYSE:AI) is an enterprise AI application software company. C3 AI delivers a family of fully integrated products, including the C3 AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications. In the healthcare sector, C3.ai, Inc. (NYSE:AI) has developed an enterprise level application for classifying patients based on their risk levels for developing long-term opioid dependence, enabling the company to customize preventative and targeted treatments to patients at the highest risk.

In FY24, C3.ai, Inc. (NYSE:AI) closed 191 agreements, an increase of 52% year-over-year, including 123 pilots, an increase of 151% year-over-year. Total revenue for the fourth quarter of fiscal year 2024 for C3.ai, Inc. (NYSE:AI) was $86.6 million, an increase of 20% compared to $72.4 million in the same period one year ago. GAAP gross profit for the quarter was $51.6 million, representing a 60% gross margin. Non-GAAP gross profit for the quarter was $60.9 million, representing a 70% non-GAAP gross margin.

7. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Number of Hedge Fund Holders: 49

GE HealthCare Technologies Inc. (NASDAQ:GEHC) leverages AI in medical imaging, diagnostics, and patient monitoring. Their Edison platform, a prominent AI-driven tool, enhances diagnostic imaging and helps optimize clinical workflows, making diagnoses faster and more accurate. AI is central to the company’s strategy of integrating technology across its product portfolio, especially in areas like radiology and cardiology.

In 2023, GE HealthCare Technologies Inc. (NASDAQ:GEHC) saw a 7% increase in total revenue, reaching $19.6 billion. Much of this growth is attributed to their AI-driven innovations in imaging and diagnostics, with tools like Edison True PACS improving radiologist efficiency. As healthcare facilities demand more accurate and efficient diagnostic tools, GE’s AI products have driven both operational efficiencies and revenue gains. Their success in AI integration is reflected in increased sales of AI-enhanced imaging systems and diagnostic tools.

6. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 52     

Medtronic plc (NYSE:MDT), a global leader in medical devices, is utilizing AI in robotic surgery and patient monitoring systems. The company’s Hugo robotic-assisted surgery system and AI-driven monitoring solutions are designed to enhance procedural efficiency and improve patient outcomes. By integrating AI, Medtronic has expanded the capabilities of its products, particularly in minimally invasive surgeries and remote patient monitoring.

Medtronic’s AI initiatives have bolstered its financial performance. In Q3 of FY24, Medtronic plc (NYSE:MDT) posted $8.1 billion in revenue, reflecting a 4.7% growth from the same period in FY23. The company’s GAAP net income grew by 8%, reaching $1.322 billion, underscoring the financial benefits of incorporating AI into its product line. As healthcare facilities demand more advanced AI-powered tools, Medtronic continues to see increased adoption of its AI-enhanced medical devices, contributing to its growth.

5. IQVIA Holdings Inc. (NYSE:IQV)

Number of Hedge Fund Holders: 59

IQVIA Holdings Inc. (NYSE:IQV), a leader in healthcare technology, employs AI to streamline clinical trials, accelerate drug development, and analyze healthcare data. Their AI-driven solutions reduce the time needed for drug discovery and improve the efficiency of clinical trials, making them a key player in the healthcare data analytics space.

IQVIA’s financial performance has been strong, with 2023 revenues reaching $14.98 billion, a 4% year-over-year growth. The company’s GAAP net income grew by 24.5%, totaling $1.36 billion. For 2024, IQVIA Holdings Inc. (NYSE:IQV) expects revenues between $15.4 billion and $15.65 billion, signaling continued demand for AI-driven healthcare solutions. Their AI capabilities, particularly in drug development and clinical trial management, are central to this growth.

4. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 67   

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a pioneer in robotic surgery, most notably with its Da Vinci system, which incorporates AI to enhance precision and expand surgical capabilities. AI algorithms improve the system’s accuracy in tasks like tissue manipulation and surgical planning. The system is used in a growing range of procedures, including urological, gynecological, and general surgeries, significantly improving patient outcomes through minimally invasive techniques.

Financially, the adoption of AI-enhanced Da Vinci systems has contributed significantly to Intuitive’s revenue. In 2023, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported a 14% revenue growth, with a total of 1,370 systems installed worldwide—a year-over-year increase of 8%. System sales accounted for $480 million in Q4 alone, reflecting strong demand. Procedure volume using these systems grew by 21%, leading to a 17% rise in quarterly revenue, totaling $1.93 billion for Q4. Operating income also increased by 20%, reflecting the rising adoption of its AI-powered surgical systems.

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) has integrated AI into its MedTech and pharmaceutical divisions, particularly in surgical robotics and drug discovery. Ethicon, a subsidiary of J&J, uses AI in surgical planning and execution, improving precision and patient outcomes. AI tools are also aiding J&J in advancing drug discovery, particularly in oncology and immunology, where AI accelerates the identification of new therapies.

Financially, AI-driven innovations have positively impacted J&J’s performance. In 2023, the company’s total sales rose to $85.2 billion, a 6.5% year-over-year increase. The MedTech segment grew by 12.4%, reflecting strong demand for AI-enhanced surgical tools. In 2024, Johnson & Johnson (NYSE:JNJ) expects revenues between $89.2 billion and $89.6 billion, driven by growth in its MedTech and Innovative Medicine segments, which benefit from AI advancements in surgery and drug development.

2.  NVIDIA Corporation (NASDAQ:NVDA) 

Number of Hedge Fund Holders: 179 

While NVIDIA Corporation (NASDAQ:NVDA) is best known for its hardware, the company’s AI technologies have become essential for healthcare applications, particularly in diagnostics, drug discovery, and data analysis. NVIDIA’s Clara platform, an AI-powered suite of tools, supports advanced imaging, genomics, and computational drug discovery, helping healthcare providers and researchers process vast datasets quickly and accurately.

NVIDIA’s financials reflect its growing influence in the healthcare space. In fiscal year 2023, NVIDIA Corporation (NASDAQ:NVDA) reported $27 billion in revenue, driven by a 41% increase in data center revenue, where AI and cloud computing demands play a significant role. In Q4 alone, NVIDIA saw a 53% increase in revenue year-over-year, reaching $6.05 billion, with healthcare AI applications playing a vital role. Partnerships with healthcare institutions and increasing demand for AI-powered solutions in diagnostics have contributed to this strong financial performance.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft’s AI capabilities are applied to healthcare through its Azure platform, which supports hospitals and pharmaceutical companies in data analysis, diagnostics, and personalized medicine. Microsoft Corporation (NASDAQ:MSFT) offers healthcare cloud solutions that have driven increased revenue from AI-powered tools for healthcare providers. Microsoft Corporation (NASDAQ:MSFT) recently unveiled new models within Azure AI Health Insights, which offers tools to help doctors, nurses and researchers make more informed decisions. The model, a patient timeline, gives clinicians a simple, chronological overview of a patient’s medical history by using generative AI to consolidate information from different unstructured data sources. The other model, called clinical report simplification, allows clinicians to use generative AI to simplify reports full of complex medical terminology into language that patients may understand better. And the final model, radiology insights, aims to help clinicians and radiologists by identifying errors and inconsistencies that can come up across different reports. The model can also offer follow-up recommendations.

Microsoft Corporation (NASDAQ:MSFT) has seen substantial growth in profits driven by its AI initiatives, particularly through its cloud services and AI-infused products. In fiscal year 2024, AI-related services contributed significantly to the company’s revenue growth, particularly in the Azure cloud platform, which saw a 30% increase in revenue, fueled by AI adoption. Microsoft reported an impressive 33% rise in overall profits during the second quarter of FY24, bringing net income to $21.9 billion, largely attributed to AI and cloud services expansion. With over 53,000 Azure AI customers and growing demand for AI-enhanced features, AI is becoming a major pillar of Microsoft’s business strategy.

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