In this article, we highlight the 11 Best Healthcare AI Stocks to Buy Now.
On August 13, 2025, the World Economic Forum (WEF) published an analysis exploring how AI is transforming healthcare. According to WEF, more than 4.5 billion people lack essential healthcare and by 2030 there will be a shortage of 11 million health workers worldwide. Therefore, WEF argues, AI could help close access gaps and support universal health coverage. So far, according to WEF, AI is helping in clinical diagnostics, triage, and early disease detection.
Interestingly, WEF’s conclusions echo what others have said before. For example, Deloitte noted back in January that healthcare systems are increasingly turning to AI-enabled tools to address workforce shortages, rising administrative burdens, and capacity constraints. In fact, a Deloitte US Center for Health Solutions survey found that over 40% of global health systems have seen substantial returns on investments in a specific aspect of AI called generative AI (GenAI).
Still on GenAI in medicine, Precedence Research valued the market at $1.55 billion this year, and estimates that it could expand to over $45 billion by 2034.
Some expert observers believe that healthcare companies that integrate AI, not just GenAI, will become the ultimate hedge against an AI correction. For example, Arnaud Girod, Head of Economics and Cross Asset Strategy at Kepler Cheuvreux, told CNBC on December 5 that healthcare stocks will thrive in the era of AI. However, he cautioned that investors “need to find businesses where the franchises are not going to be challenged by the AI disruption itself and, at the same time, companies that could leverage the technology either through cost cutting, efficiencies, productivity, or indeed, incremental innovation.”
Against this backdrop, this article focuses on the 11 healthcare AI stocks on the radar of many institutional investors and with a substantial upside potential.
Our Methodology
To identify the 11 Best Healthcare AI Stocks to Buy Now, we first reviewed financial media reports, healthcare-focused ETFs, and stock screeners to compile a list of publicly traded healthcare companies that integrate AI as a core component of their operations. From these, we filtered for stocks with positive upside potential, based on consensus price targets. The list was then narrowed to stocks with significant hedge fund ownership as of Q3 2025, then ranked by the number of funds invested in them.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: The stock upside data is as of December 18, 2025.
Best Healthcare AI Stocks to Buy Now
11. Schrödinger, Inc. (NASDAQ:SDGR)
Stock Upside Potential: 49.43%
Number of Hedge Fund Holders: 22
Schrödinger, Inc. (NASDAQ:SDGR) is one of the best healthcare AI stocks to buy now. On December 15, BofA Securities upgraded Schrödinger, Inc. (NASDAQ:SDGR) from Neutral to Buy, with a $24 price target. BofA stated this move is a result of its growing optimism that Schrödinger’s recent pivot away from resource-heavy internal drug development toward its core software business is clearing the path for stronger, more predictable growth.
BofA described Schrodinger’s strategic refocus on software operations as creating a cleaner story for the company. This is a simpler, more streamlined business model that reduces complexity and cash burn from clinical programs, noted BofA. It added that this shift positions Schrodinger to better capitalize on the ongoing pharmaceutical research and development cycle, where demand for advanced computational tools in early-stage discovery remains robust.
In a different update, on December 3, KeyBanc reiterated an Overweight rating on Schrodinger with a $28 price target. This action followed direct meetings with the company’s CEO and CFO. KeyBanc highlighted a compelling turnaround as Schrodinger redirects resources toward its high-margin software core. Management discussions on a non-deal roadshow emphasized product expansions into new budgets and longer-term growth potential from current programs.
KeyBanc views the stock as cheaply valued at roughly three times 2026 consensus revenue estimates. And that it presents an attractive opportunity for healthcare technology investors.
Schrödinger, Inc. (NASDAQ:SDGR) develops computational platforms for drug discovery. It combines physics-based molecular modeling with AI to accelerate pharmaceutical research.
10. Simulations Plus, Inc. (NASDAQ:SLP)
Stock Upside Potential: 9.63%
Number of Hedge Fund Holders: 25
Simulations Plus, Inc. (NASDAQ:SLP) is one of the best healthcare AI stocks to buy now. On December 9, Simulations Plus, Inc. (NASDAQ:SLP) issued a press release highlighting how its technologies align with the FDA’s new regulatory direction. On December 2, the FDA released a draft guidance focused on streamlined nonclinical safety studies for monospecific monoclonal antibodies. This guidance, the FDA said, promotes a shift away from extensive animal testing by prioritizing mechanistic understanding, pharmacokinetics data, and integrated weight-of-evidence (WoE) assessments to support safety decisions in drug development.
In their response, Simulations Plus stated that its existing platforms already support the FDA’s emphasized approaches. The company also announced ongoing investments in biologics modeling, with planned updates to some of its platforms to further enhance capabilities for monoclonal antibodies, antibody-drug conjugates, and immune-related pathways.
Separately, on December 2, Citizens stuck with a Market Perform rating on Simulations Plus stock, arguing that the company is fairly valued right now. Even though the company has some clear strengths, the analysts stated, its expected growth remains modest. As such, the current stock price already reflects what investors can reasonably expect.
Specifically, Citizens highlighted modest growth expectations across fiscal years 2026 and 2027. This, noted the analysts, keeps the valuation in check and prevents the stock from being seen as undervalued. The firm maintained its existing fiscal year 2026 revenue and EBITDA estimates without changes, showing no major shift in outlook after reviewing recent developments.
Simulations Plus, Inc. (NASDAQ:SLP) develops advanced modeling and simulation software for drug discovery and development. The company’s platforms integrate AI and machine learning to accelerate pharmacokinetics, quantitative systems pharmacology, and clinical trial design.
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