We recently compiled a list of the Top 10 Medical AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Medtronic plc (NYSE:MDT) stands against the other medical AI stocks.
Investments in the global healthcare industry have ramped up sharply since the COVID-19 pandemic. With the advent of artificial intelligence (AI), the industry witnessed a rapid transformation in early disease detection, genomic research, drug discovery, clinical processes, and treatment efficacy prediction.
According to a 2023 PwC report, the AI market in healthcare was valued at $11 billion and is expected to grow to $188 billion by 2030. On January 21st, Oracle Co-founder Larry Ellison said during a White House speech that AI plays an integral role in early cancer detection and vaccine development. He highlighted how AI could help detect tiny tumor fragments and assist in gene-sequencing malignancies for the development of mRNA vaccines at a rapid speed for customized cancer treatment options.
Furthermore, AI is speeding up accurate decision-making by aligning big health data with pattern recognition systems, improving patient outcomes by ensuring timely clinical intervention.
During a fireside chat at the annual J.P. Morgan Healthcare Conference on January 13th, Mayo Clinic chief administrative officer Christina Zorn shared how the company addresses potential future healthcare worker shortages and improves cancer care by leveraging AI in robotics and pathology database management.
“We’re going to use, essentially, the robots to be a member of the healthcare team in the healthcare spaces,” she said. “We saw a paradigm shift in healthcare. You’re either going to disrupt from within, or you’re going to be disrupted,” she said.
The significant growth potential in the evolving AI healthcare industry is driving investor interest in the sector as drug discovery and development companies continue to announce new-gen breakthroughs.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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).
A surgeon in a modern operating room holding advanced medical devices with a sense of purpose and accuracy.
Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 60
Medtronic (NYSE:MDT) designs and manufactures medical devices as well as develops healthcare technologies and therapies for 70-plus health conditions involving cardiovascular, neuroscience, diabetes, orthopaedics, and urology. The medical devices leader is leveraging AI to enhance clinical decision-making, devise new indicators, and deliver customized treatment options.
On January 17th, Medtronic announced that its DEFINE AFib clinical study of 973 patients involving the company’s LINQ family of insertable cardiac monitors and AI-based algorithms helped detect atrial fibrillation (AF) episodes and identify high-risk participants with 80% accuracy. The study will enable researchers to refine AI and machine learning algorithms to predict the requirement of AF-related healthcare for individuals at high risk and ensure ideal treatment decisions.
Overall MDT ranks 9th on our list of the medical AI stocks on Wall Street’s radar. While we acknowledge the potential of MDT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
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