In this article, we will look at the Top 10 Medical AI Companies to Buy According to Analysts.

Artificial intelligence is transforming medical sciences in ways not seen before. From enhancing patient diagnosis to accelerating end-to-end drug discovery, the technology is also improving communication between physicians and patients.

“AI transformation goes beyond adopting new tools. It involves rethinking the fundamentals of how health is delivered and accessed,” said the World Economic Forum in a white paper titled The Future of AI-Enabled Health: Leading the Way.

One of the most exciting applications of generative AI in healthcare is drug discovery. The technology is already being used to accelerate the drug discovery process, targeting some of the most aggressive cancers like Prostate cancer, lymphoma, and triple-negative breast cancer. The technology stands out in its ability to identify drug candidates more quickly, ideally reducing the decades-long discovery process to just a few years.

“Most people have had friends, family members, etc., who’ve died from cancer or had serious cancer problems,” Hoffman told CNBC in an interview this week. “If we can make a huge difference on this, and this is the kind of thing that AI can make a huge difference in, it’s the kind of reason why AI can be great for humanity,” said LinkedIn co-founder and venture capitalist Reid Hoffman.

Likewise, the global AI in healthcare market size is projected to reach $504.17 billion by 2032, growing at a compound annual growth rate of 44%, according to Fortune Business Insights. The robust growth will come as AI revolutionizes medical services by enhancing diagnostics, personalizing treatments, optimizing resource allocation, and potentially reducing healthcare costs.

Our Methodology

To compile the list of top medical AI companies to buy, according to analysts, we used Finviz’s stock screener to compile a list of healthcare companies. We then focused on companies integrating AI-powered systems and innovations to enhance drug and medical devices development and patient services delivery. We further focused on stocks popular among elite hedge funds based on data taken from Insider Monkey’s Q1 2025 database. Finally, we ranked the stocks in ascending order based on their upside potential as per analysts’ forecasts (as of August 4).

Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Top Medical AI Companies to Buy According to Analysts

10. Biogen Inc. (NASDAQ:BIIB)

Stock Upside Potential: 25.68%

Number of Hedge Fund Holders: 52

Biogen Inc. (NASDAQ:BIIB) is one of the top 10 medical AI companies to buy according to analysts. On July 14, UBS reiterated a ‘Neutral’ rating on the stock and raised the price target to $130 from $119. The research firm’s neutral stance comes amid skepticism about the commercial opportunity of the company’s Alzheimer’s disease treatment, Leqembi.

The research firm remains on the sidelines regarding the company’s commercial opportunity and clinical data assessment around Leqembi. Consequently, its neutral rating underscores a cautious stance on the prospects for Alzheimer’s disease treatment.

Amid a cautious outlook, Biogen has presented new data at the Alzheimer’s Association International Conference (AAIC) 2025, demonstrating that investigational Leqembi 360 mg subcutaneous maintenance dosing could offer a new option for the ongoing treatment of early Alzheimer’s disease.

Biogen Inc. (NASDAQ:BIIB) is a global biotechnology company that focuses on researching, developing, and manufacturing therapies for neurological diseases. It leverages AI and machine learning to accelerate drug discovery, optimize clinical trials, and enhance operational efficiency. They are actively involved in utilizing AI to comprehend complex neurological diseases and to improve patient care.

9. Pediatrix Medical Group, Inc. (NYSE:MD)

Stock Upside Potential: 27.96%

Number of Hedge Fund Holders: 26

Pediatrix Medical Group, Inc. (NYSE:MD) is one of the top 10 medical AI companies to buy according to analysts. On July 1, the company confirmed the appointment of Dr. Kurt D. Newman to its Board of Directors.

He joins the Board as an independent director, having previously served as President and Chief Executive Officer of Children’s National Hospital in Washington. Consequently, his deep understanding and experience in patient needs, clinical practices, and the evolving healthcare landscape will be a valuable addition to Pediatrix Medical management.

“The physician voice is central to patient-centered decision making,” Dr. Newman said in the statement. “I look forward to contributing my experience to strengthen collaboration between physicians, other clinicians, executive leadership and the board.”

Pediatrix Medical Group, Inc. (NYSE:MD) provides specialized healthcare services for women, babies, and children, operating as a national multispecialty group. It utilizes AI in prenatal care through a partnership with Sonio, specifically integrating Sonio’s AI-powered platform for ultrasound workflow and practice management. This technology aims to streamline ultrasound processes, enhance quality assurance, and improve both patient and provider experiences.