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Is DexCom, Inc. (DXCM) the Best Medical Device Stock to Buy?

We recently published a list of the 10 Best Medical Device Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where DexCom, Inc. (NASDAQ:DXCM) stands against other best medical device stocks to buy right now.

Overview of the Medical Devices Sector

According to a report by Mordor Intelligence, the medical devices market has a size of $681.57 billion as of 2025. The massive industry is expected to grow at a compound annual growth rate of 6.99% between 2025 and 2030, reaching a market size of $955.49 billion by the end of the forecast period.

This significant growth can be attributed to various megatrends in the healthcare sector. The aging population worldwide is one of the primary factors affecting the industry. This is especially true in high-income countries such as the US, as around 17% of the country’s population is 65 or older as of 2023. This is causing an increase in the prevalence of chronic diseases, which is ultimately driving the demand for medical devices.

This demand is anticipated to continue growing in the coming decades. According to statistics by the United Nations, the number of people aged 65 or older is anticipated to represent around 16% of the world’s population by 2050, which translates to around 1.5 billion people worldwide. This demographic shift is anticipated to materialize especially prominently in regions such as Europe and North America, where the population of 65 or older is expected to reach 26.9% by 2050.

READ ALSO: 12 Best Hair Care Stocks to Buy According to Hedge Funds and 10 Best Furniture Stocks to Buy Right Now

Continued Growth in the US Medical Device Manufacturing Sector

In addition, technological advancements such as the increasing use of AI, predictive analysis, and advanced algorithms are metamorphosing the healthcare technology industry. While North America is the largest medical device market, Asia-Pacific is the fastest growing.

Another report by Grand View Research estimates that the market size of medical device manufacturers in the US is around $256.2 billion as of 2024. It is expected to grow at a compound annual growth rate of 5.9% between 2025 and 2030. The primary reasons behind this growth include the increasing geriatric population, the growing number of road and sports accidents, the expanding geographic reach of the key players in the market, and the rising adoption of minimally invasive procedures in the industry.

The Future of the Healthcare Industry in the US

According to McKinsey, the healthcare industry is expected to continually undergo a shift in growth dynamics. Health services and technology (HST) revenue pools are anticipated to grow at a compound annual growth rate of 8% between 2023 and 2028, supported by double-digit growth in software platforms and advanced data and analytics. The sales of innovative technologies such as generative AI to payers and providers are further supporting this growth.

In addition, pharmacy services, especially those focused on specialty pharmacy, are expected to see continued growth. The launch of new therapies and increased utilization are expected to be the primary drivers of this growth. McKinsey estimates specialty pharmacy revenue will grow at a compound annual growth rate of 8% between 2023 and 2028, growing EBITDA for managed service providers and specialty pharmacies. Therefore, optimistic trends are materializing for the healthcare industry as a whole, including the medical device sector.

Our Methodology

We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 medical device stocks. We then selected the top 10 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? 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).

A doctor demonstrating how to use the medical device to a patient with diabetes.

DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 55

DexCom, Inc. (NASDAQ:DXCM) is a medical device company that manufactures continuous glucose monitoring (CGM) systems to allow real-time health management control. Specializing in diabetes care technology, the company helps improve and simplify diabetes management worldwide. It offers various medical devices and products, including Dexcom G6, Dexcom G7, Dexcom Stelo, Dexcom Share, Dexcom Real-Time API, and Dexcom ONE.

DexCom, Inc. (NASDAQ:DXCM) is one of the best medical device stocks for growth-oriented investors and is expected to outperform the market in the coming years. It boasts an expanded product portfolio and launched Stelo in the United States last year. Stelo is an over-the-counter CGM option for use by pre-diabetic patients. The launch has significantly expanded the company’s scope, as approximately 33% of adults in the US are pre-diabetic, according to the US Centers for Disease Control and Prevention.

Furthermore, DexCom, Inc.’s (NASDAQ:DXCM) devices are compatible with several third-party gadgets and apps that help combat diabetes. The company’s expanding base thus gives it a competitive market advantage in the CGM industry. The company’s guidance for 2025 shows a 14% year-over-year revenue growth.

Overall, DXCM ranks 10th on our list of best medical device stocks to buy according to hedge funds. While we acknowledge the potential of DXCM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DXCM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

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The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

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It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

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