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.
9. Teladoc Health, Inc. (NYSE:TDOC)
Stock Upside Potential: 27.17%
Number of Hedge Fund Holders: 31
Teladoc Health, Inc. (NYSE:TDOC) is one of the best healthcare AI stocks to buy now. On December 16, Teladoc Health, Inc. (NYSE:TDOC) disclosed that board director J. Eric Evans would retire in 2026. The company said Evans intended to not stand for reelection at the 2026 Annual Meeting of Stockholders. He will retire from the Board effective at the conclusion of that meeting.
Separately, on December 9, Barclays initiated coverage on Teladoc with an Equal Weight rating and an $8.50 price target. This debut note has a neutral stance on the state of the US healthcare technology and distribution industry.
Earlier on November 25, Bank of America Securities analyst Allen Lutz reiterated a Hold rating on Teladoc and lowered the price target to $8. Lutz said this update was a result of mixed results in user growth metrics. For instance, BetterHelp showed some sequential improvement in monthly active users (MAUs), yet faced a year-over-year decline. On the brighter side, Livongo’s MAUs hit their highest levels since early 2024. However, these figures are below 2022 peaks, meaning the rebound isn’t strong enough yet to fuel big revenue gains in the near term, stated Lutz.
Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services across general medical, chronic condition management, mental health, and specialty care. The company integrates AI-enabled features in its Virtual Sitter solution, which uses motion detection and pose estimation to identify patient movements that may precede falls.
8. Tempus AI, Inc. (NASDAQ:TEM)
Stock Upside Potential: 38.16%
Number of Hedge Fund Holders: 32
Tempus AI, Inc. (NASDAQ:TEM) is one of the best healthcare AI stocks to buy now. On December 15, JPMorgan lowered its price target on Tempus AI, Inc. (NASDAQ:TEM) from $85 to $80. The firm maintained its Neutral rating on the shares. This move came as JPMorgan updated its models across the life science tools and diagnostics group.
Separately, on December 8, TD Cowen reiterated a Hold rating on Tempus AI with an unchanged $88 price target. The firm is bullish on the broader opportunity, expressing optimism about how structured, large-scale longitudinal data sets can drive efficiency improvements in pharmaceutical research and development. Crucially, TD Cowen views Tempus AI as “well positioned to be a leader” in the pharmaceutical R&D efficiency space. This is thanks to the company’s extensive data assets serving as a key competitive advantage.
Also, TD Cowen revealed that it is expanding coverage on Tempus AI. The firm’s analysts plan to add value through in-depth diligence on Tempus AI’s data infrastructure and the ways its AI-driven solutions are applied across the healthcare industry.
Tempus AI, Inc. (NASDAQ:TEM) specializes in AI-enabled precision medicine, integrating clinical and molecular data to improve patient outcomes. The company applies machine learning and high-throughput genomic sequencing to accelerate diagnostics, treatment selection, and drug development.
7. Evolent Health, Inc. (NYSE:EVH)
Stock Upside Potential: 150.99%
Number of Hedge Fund Holders: 38
Evolent Health, Inc. (NYSE:EVH) is one of the best healthcare AI stocks to buy now. On December 8, Evolent Health, Inc. (NYSE:EVH) revealed that it had completed the divestiture of its Accountable Care Organization (ACO) business to Privia Health Group, Inc. (NASDAQ:PRVA). The transaction, initially announced on September 23, 2025, was closed on Friday December 5.
Evolent received $100 million in cash at closing. The company could also earn an additional package up to $13 million contingent on the ACO’s final Medicare Shared Savings Program (MSSP) performance for 2025. According to management, the divestiture enabled Evolent to sharpen its focus on core specialty condition management areas. It stated that it used the proceeds to reduce debt and improve annual cash flow by approximately $7 million.
Separately, on December 2, Piper Sandler lowered the price target on Evolent from $18 to $6. The firm maintained an Overweight rating on the stock, noting that its deep decline creates an attractive entry point amid temporary policy-driven challenges. According to the analysts, the primary concern is expected enrollment declines in the Individual ACA Marketplace and Medicaid, which together make up about two-thirds of Evolent’s revenue, over the next two years. These drops, stated the firm, stem from the expiration of enhanced Advanced Premium Tax Credits in the Marketplace and the introduction of work requirements in Medicaid, leading to a degraded risk pool. This reduced visibility hits Evolent’s Performance Suite business hardest and lowers high-margin Tech and Services revenue, which is priced on a per-member-per-month basis.
As a result, Piper Sandler now forecasts pro forma CY26E adjusted EBITDA to remain approximately flat year-over-year. The analysts see meaningful earnings growth not resuming until 2027 and substantive debt reduction starting in 2028. On the positive side, the firm believes the risk-reward profile is favorable at current valuation levels of 8-9 times CY27E adjusted EBITDA, especially after the stock’s steep 68.5% drop over the past year.
Evolent Health, Inc. (NYSE:EVH) provides healthcare administrative and clinical solutions, focusing on value-based care delivery and population health management. The company integrates AI into its Identifi platform, which uses predictive analytics and machine learning to identify high-risk patients, optimize care coordination, and reduce costs.
6. iRhythm Technologies, Inc. (NASDAQ:IRTC)
Stock Upside Potential: 30.98%
Number of Hedge Fund Holders: 43
iRhythm Technologies, Inc. (NASDAQ:IRTC) is one of the best healthcare AI stocks to buy now. On December 2, Morgan Stanley raised its price target on iRhythm Technologies, Inc. (NASDAQ:IRTC) from $195 to $205, while maintaining an Overweight rating. The adjustment comes as part of a broader positive preview for the MedTech industry heading into 2026. Morgan Stanley said it sees the industry as well-positioned on several fronts. Some of the key drivers cited include major product cycles across the space, a supportive hospital spending environment, and current valuations that appear to be at trough levels.
In a separate update, on November 21, the company announced new data presented at the joint Asia Pacific Heart Rhythm Society (APHRS) and Japan Heart Rhythm Society (JHRS) scientific sessions in Yokohama, Japan. The presentation highlighted a large-scale retrospective analysis showing that the company’s Zio long-term continuous ECG monitoring (LTCM) system performed consistently in patients identified as Asian compared to non-Asian patients.
The study examined data from 408,470 US patients who used the Zio LTCM service for up to 14 days of monitoring. And despite Asian patients having lower baseline prevalence of conditions like atrial fibrillation (AF), heart failure, and coronary artery disease, detection rates remained similar. Repeat monitoring rates were also low and comparable. According to the company, these outcomes aligned with prior published studies, which demonstrated Zio LTCM’s high diagnostic yield and low retesting rates compared to other monitoring services. The findings support the generalizability of Zio monitoring across diverse populations.
iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital health company that develops wearable biosensors and cloud-based analytics for cardiac monitoring. The company has integrated AI into arrhythmia detection and predictive diagnostics.
5. Veeva Systems Inc. (NYSE:VEEV)
Stock Upside Potential: 47.04%
Number of Hedge Fund Holders: 57
Veeva Systems Inc. (NYSE:VEEV) is one of the best healthcare AI stocks to buy now. On December 15, Stifel reiterated a Buy rating on Veeva Systems Inc. (NYSE:VEEV), even as some big pharmaceutical customers shift away from its legacy CRM platform. Stifel sees these migrations as a small, manageable issue that won’t derail Veeva’s overall momentum.
According to the analyst’s assessment, Veeva currently serves 18 of the top 20 pharmaceutical companies with its CRM tools. However, Veeva now expects only 14 to migrate to the newer Veeva Vault CRM, down slightly from earlier hopes. CRM makes up about 20% of Veeva’s total revenue (down from 25% two years ago), and the top 20 pharma clients represent roughly 50-60% of that CRM revenue segment. Stifel crunched the numbers and concluded that Veeva faces only a 2-3% revenue headwind over the next five years from these losses. The firm views the figure as minor and not material.
Nonetheless, KeyBanc Capital Markets took a different direction in its update on Veeva on December 12. Scott Schoenhaus, the analyst in charge, downgraded Veeva from Overweight to Sector Weight. The analyst cited rising concerns that competition in the CRM segment, particularly from Salesforce, is becoming a real drag on Veeva’s outlook. Large pharmaceutical clients currently shopping for new software are increasingly favoring Salesforce’s CRM offerings over Veeva’s solutions, noted Schoenhaus.
Veeva Systems Inc. (NYSE:VEEV) provides cloud-based software solutions for the life sciences industry. This includes applications for regulatory compliance, clinical data management, and customer relationship management. The company has incorporated AI into its platforms to improve drug development and commercialization.
4. Medtronic plc (NYSE:MDT)
Stock Upside Potential: 13.52%
Number of Hedge Fund Holders: 58
Medtronic plc (NYSE:MDT) is one of the best healthcare AI stocks to buy now. On December 4, Stifel reaffirmed its Hold rating on Medtronic plc (NYSE:MDT), along with a $105 price target. This action came soon after the FDA granted regulatory approval to Medtronic’s HUGO robotic-assisted surgery (RAS) system.
Stifel described the HUGO approval as an important and positive step for Medtronic, ending a long development phase and finally opening the door to competition in the US surgical robotics market. The firm pointed out that this allows Medtronic to challenge dominant players in minimally invasive procedures, where robotic systems are increasingly used. However, Stifel expects any meaningful added revenue from the HUGO launch to begin only in Medtronic’s fiscal year 2027.
Medtronic announced the approval on December 3, stating that the HUGO RAS system will be used in minimally invasive urologic surgical procedures. As a result, the system will operate in the US where it is now indicated for procedures such as prostatectomy (prostate removal), nephrectomy (kidney removal), and cystectomy (bladder removal).
The clearance followed positive results from the Expand URO investigational device exemption (IDE) clinical study. Medtronic described the study as the largest multi-center prospective IDE trial for multi-port robotic-assisted urologic surgery in the US. The company plans a phased launch focused on partnerships with leading hospitals.
Medtronic plc (NYSE:MDT) develops and manufactures medical devices and therapies across cardiovascular, diabetes, surgical, and neurological care. The company’s AI-enabled portfolio includes GI Genius, Touch Surgery Enterprise for surgical video analysis, AiBLE for neurosurgery, and the MiniMed 780G insulin pump.
3. Stryker Corporation (NYSE:SYK)
Stock Upside Potential: 23.24%
Number of Hedge Fund Holders: 72
Stryker Corporation (NYSE:SYK) is one of the best healthcare AI stocks to buy now. On December 11, Citi cut the price target on Stryker Corporation (NYSE:SYK) from $455 to $420, while maintaining a Buy rating on the shares. This adjustment, the firm said, is part of a sector-wide adjustment as it formulates its 2026 outlook.
Independently of the analyst action, on December 11, Stryker’s Board of Directors declared a $0.88 per share quarterly dividend, payable on January 30, 2026. This payment is 4.8% higher than the previous figure paid in October 2025. With this payment, the new annualized dividend equates to $3.52 per share.
In another update, on December 4, the company appointed Spencer Stiles as President and Chief Operating Officer, effective January 1, 2026. Stiles will oversee the company’s global businesses, corporate strategy, and mergers and acquisitions activities. He joined Stryker in 1999 and has served as Group President of Orthopaedics and Spine since 2019.
At the same time, Dylan Crotty, another Stryker veteran currently serving as President of Instruments, will be promoted to Group President of Orthopaedics. Crotty will succeed Stiles. He has previously been the head of Trauma and Extremities and European operations, and is noted for operational leadership and collaboration.
Stryker Corporation (NYSE:SYK) designs and manufactures medical technologies across orthopedics, surgical equipment, and neurotechnology. The company applies AI in areas such as surgical robotics, predictive analytics for patient care, enhanced imaging, inventory management, and remote monitoring.
2. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Stock Upside Potential: 11.81%
Number of Hedge Fund Holders: 99
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best healthcare AI stocks to buy now. On December 16, David Rescott from Robert W. Baird reaffirmed a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) and maintained the $655 price target. Earlier on December 11, Citi’s Joanne Wuensch assigned a Hold rating on the stock.
In a different update, on December 10, Intuitive announced that the FDA had cleared its da Vinci Single Port (SP) surgical system for three additional procedures. These include inguinal hernia repair, cholecystectomy (gallbladder removal), and appendectomy (appendix removal). According to the company, this clearance broadens the da Vinci SP’s US indications, which previously included urology (such as simple prostatectomy), colorectal (including transabdominal and transanal procedures), thoracic, and transoral otolaryngology surgeries.
The da Vinci SP system enables surgeons to perform complex operations through a single incision or natural orifice. The system builds on earlier 2025 expansions, including FDA clearance in May for transanal local excision/resection in colorectal surgery and in April for a single-port stapler used in thoracic, colorectal, and urologic procedures. Outside the US, the da Vinci SP has approvals in Europe, Japan, and Korea for a wider range of procedures across multiple disciplines. Initial US clearance in 2014 and 2018 focused on urology. Subsequent additions included transoral procedures (2019) and simple prostatectomy (2023).
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, produces, and markets robotic systems for minimally invasive surgery. The company provides instruments, accessories, and services to support these platforms, which have been installed in more than 10,000 hospitals worldwide.
1. Boston Scientific Corporation (NYSE:BSX)
Stock Upside Potential: 34.26%
Number of Hedge Fund Holders: 102
Boston Scientific Corporation (NYSE:BSX) is one of the best healthcare AI stocks to buy now. On December 12, TD Cowen reaffirmed a Buy rating on Boston Scientific Corporation (NYSE:BSX) and kept a $115 price target. The firm went a step further to name Boston Scientific their “Best Idea for 2026.”
TD Cowen called Boston Scientific “the most attractive growth story in the medical devices sector.” The firm said this view is backed by confidence in the company’s long-range plan for more than 10% organic sales growth annually, 50 basis points of yearly operating margin expansion, and double-digit EPS growth. The analysts expect Boston Scientific to keep up double-digit organic revenue growth into 2026, even with tougher year-over-year comparisons ahead.
What sets Boston Scientific apart from peers, noted TD Cowen, is a proven history of strong double-digit earnings growth. The firm said this justifies higher valuation multiples due to its “scarcity value”; that is, few companies can match this reliable high growth. And key drivers include standout products like Farapulse (for atrial fibrillation treatment) and Watchman (for stroke prevention).
In a different update, on November 18, Boston Scientific participated in the 7th Annual Wolfe Research Healthcare Conference. During the event, senior management engaged in a fireside chat discussion centered on the company’s innovation pipeline, market expansion strategies, and performance in key growth areas, particularly electrophysiology. A major highlight was the strong adoption of the Farapulse pulsed field ablation (PFA) system. Management projected that the system’s US market penetration will exceed 50% by the end of 2025. For the Watchman left atrial appendage closure device, the discussion addressed historical trials like CLOSURE, noting limitations from older device generations and post-procedure regimens.
Boston Scientific Corporation (NYSE:BSX) develops medical devices used in cardiology, endoscopy, neuromodulation, and urology. The company applies machine learning, natural language processing, and computer vision to enhance medical imaging, predictive analytics for patient management, and remote monitoring.
While we acknowledge the potential of Boston Scientific Corporation (NYSE:BSX) as an investment, 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 BSX and that has 100x upside potential, check out our report about this cheapest AI stock.
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