Top 10 Healthcare AI Stocks to Buy According to Hedge Funds

6. iRhythm Technologies, Inc. (NASDAQ:IRTC)

Number of Hedge Fund Holders: 31

iRhythm Technologies, Inc. (NASDAQ:IRTC) is one of the top 10 healthcare AI stocks to buy according to hedge funds. Morgan Stanley has raised its price target on iRhythm Technologies, Inc. (NASDAQ:IRTC) to $160 from $130, while maintaining an “Overweight” rating, citing strong early indicators for the company’s second-quarter performance. In a recent note to investors, the firm pointed to a surge in MyZio app downloads, which totaled 171,169 in Q2—up 74% year-over-year and 36% compared to the first quarter. The increase suggests iRhythm may outperform Street estimates, as most of the Zio patches generating revenue for the quarter have already been prescribed and tied to active monitoring.

Morgan Stanley highlighted that the strong app adoption signals growing patient engagement and broader acceptance of digital cardiac care, which bodes well for both short- and long-term growth. With scalable infrastructure and a rising volume of clinical data feeding its algorithms, iRhythm is not only improving detection but also redefining remote patient monitoring. As healthcare shifts toward personalized, tech-driven models, iRhythm’s innovation and execution place it among the leaders in digital diagnostics. Morgan Stanley views the company as a compelling investment amid increasing demand for smart, connected health solutions.

iRhythm Technologies, Inc. (NASDAQ:IRTC) develops and markets the Zio platform, a patch-based cardiac monitoring solution that leverages advanced analytics and machine learning to detect arrhythmias with clinical-grade accuracy. The company’s AI-enabled technology analyzes millions of heartbeats in real time, helping physicians diagnose conditions like atrial fibrillation more effectively than traditional methods.