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.
8. Tempus AI, Inc. (NASDAQ:TEM)
Stock Upside Potential: 28.06%
Number of Hedge Fund Holders: 21
Tempus AI, Inc. (NASDAQ:TEM) is one of the top 10 medical AI companies to buy according to analysts. On July 16, the company confirmed that it had received clearance from the US Food and Drug Administration under the 510(k) process. The clearance is for the company’s Tempus ECG-Low EF software, designed to identify patients with a low left ventricular ejection fraction.
The AI-powered software is designed to measure the percentage of blood pumped out of each heartbeat. The software will be of great use for clinical diagnostics, ECG recordings collected at healthcare facilities.
“With Tempus ECG-Low EF, we’re adding another powerful tool to the hands of clinicians to help them identify patients at risk for serious cardiovascular conditions much earlier in their care journey,” said Brandon Fornwalt, Senior Vice President of Cardiology at Tempus.
It marks the second time Tempus AI has received FDA clearance for a cardiovascular product suite.
Tempus AI, Inc. (NASDAQ:TEM) is a technology company focused on precision medicine, utilizing artificial intelligence to enhance healthcare by improving disease diagnosis and treatment. It boasts a large library of clinical and genomic data to provide insights for healthcare professionals, aiming to personalize patient care and accelerate the development of new drugs.
7. Eli Lilly & Company (NYSE:LLY)
Stock Upside Potential: 34.95%
Number of Hedge Fund Holders: 119
Eli Lilly & Company (NYSE:LLY) is one of the top 10 medical AI companies to buy according to analysts. On July 29, the company entered into a strategic partnership with LTZ Therapeutics, a biotechnology firm specializing in immunotherapy. The two are joining forces to develop myeloid engager therapeutics for the treatment of diseases with high unmet needs.
Under the terms of the agreement, Eli Lilly is to make double-digit million-dollar upfront payments and invest in LTZ’s equity. In addition, LTZ is entitled to receive preclinical, clinical, regulatory, and commercial milestone payments.
“This collaboration represents a pivotal step towards our mission in harnessing the potential of myeloid biology to address diseases with high unmet need. With Lilly’s expertise and global reach, we’re accelerating the development of our myeloid engager programs and we’re one step closer to bringing transformative therapies to the patients who need them most,” said Robert Li, Founder and CEO of LTZ.
Eli Lilly & Company (NYSE:LLY) is a global pharmaceutical corporation focused on researching, developing, manufacturing, and distributing medicines. It’s actively incorporating AI across its operations, particularly in drug discovery and clinical trials. Lilly has also partnered with companies like OpenAI to develop novel antimicrobials for combating drug-resistant pathogens and is investing in AI-driven drug discovery platforms, such as the one from Genetic Leap, to identify new drug candidates.
6. Evolent Health, Inc. (NYSE:EVH)
Stock Upside Potential: 50.30%
Number of Hedge Fund Holders: 37
Evolent Health, Inc. (NYSE:EVH) is one of the top 10 medical AI companies to buy according to analysts. On July 9, the company strengthened its leadership team with the appointment of Dr. David Lim as chief clinical officer and John Way as CFO of its Performance Suite.
Dr. Lim is tasked with leading Evolent’s 300-person Health team, which focuses on innovation. He joins the team with deep experience, having previously served as the Chief Medical Officer at RightMove Health. He has also served as the Chief Technology Innovation Officer at InnovaCare Health.
Way will oversee the company’s financial aspects, focusing on the at-risk specialty condition management product. He joins Evolent Health with over 20 years of experience in executive financial management.
“I’m excited to welcome Dave and John, not just because of their deep experience but also their commitment to transforming specialty care for patients, payers and providers,” said Seth Bleckley, CEO and Co-Founder of Evolent.
Evolent Health, Inc. (NYSE:EVH) utilizes AI to enhance its healthcare solutions, particularly in areas like utilization management and clinical workflow automation. It has already acquired Machinify’s AI-powered utilization management products to streamline clinical workflows and improve efficiency in specialty condition management.
5. Novo Nordisk A/S (NYSE:NVO)
Stock Upside Potential: 51.48%
Number of Hedge Fund Holders: 60
Novo Nordisk A/S (NYSE:NVO) is one of the top 10 medical AI companies to buy according to analysts. On July 29, Novo Nordisk announced that Maziar Mike Doustdar will become its new president and CEO, effective August 7, succeeding Lars Fruergaard Jørgensen. Doustdar, currently EVP of International Operations, has driven significant growth—doubling non-U.S. sales to DKK 112 billion by 2024, and leads a global workforce of 20,000. His appointment followed a rigorous internal and external selection process and received full backing from both the Board and the Novo Nordisk Foundation.
Chair Helge Lund praised Doustdar’s leadership, noting his talent for delivering results and building strong teams. Doustdar expressed deep commitment to pushing the company further in diabetes and obesity innovation, aiming to reach more patients globally. Lund also thanked outgoing CEO Jørgensen for his 34 years of service, highlighting the transformation and impact he had on millions of lives through Novo Nordisk’s medical breakthroughs.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company that focuses on developing and delivering innovative medicines and delivery systems for serious chronic diseases, particularly diabetes and obesity. It’s also investing in and utilizing Artificial Intelligence (AI) across various aspects of its operations, including drug discovery, development, and commercial activities, with a focus on accelerating innovation and improving patient outcomes.
4. Schrödinger, Inc. (NASDAQ:SDGR)
Stock Upside Potential: 62.16%
Number of Hedge Fund Holders: 21
Schrödinger, Inc. (NASDAQ:SDGR) is one of the top 10 medical AI companies to buy according to analysts. On July 17, analysts at Citi reiterated a ‘Buy’ rating on the stock and a $39 price target. The positive stance follows the company’s announcement of a strategic collaboration with Ajax Therapeutics.
The two companies are joining forces as part of an expanded research collaboration that entails Ajax licensing an undisclosed JAK kinase target discovered using Schrödinger’s proprietary computational platform. The companies are to collaborate on the discovery of a new target, with Ajax handling clinical development and commercialization.
In return, Schrödinger will be eligible to receive discovery and development milestones, sales milestones, and single-digit royalties on net sales. Citi analysts view the expanded collaboration as a positive, expecting it to generate long-term value, thus the ‘Buy’ rating.
Schrödinger, Inc. (NASDAQ:SDGR) is a medical company that leverages AI and machine learning (ML) to accelerate drug discovery and materials science. It combines physics-based computational modeling with AI/ML techniques to predict molecular properties, design novel molecules, and optimize formulations. This allows them to rapidly and accurately discover high-quality molecules for drug development and materials applications.
3. NeoGenomics, Inc. (NASDAQ:NEO)
Stock Upside Potential: 82.75%
Number of Hedge Fund Holders: 17
NeoGenomics, Inc. (NASDAQ:NEO) is one of the top 10 medical AI companies to buy according to analysts. On July 30, the company announced the launch of NEO PanTracer LBx, a blood-based comprehensive genomic profiling (CGP) test.
The launch of PanTracer positions NeoGenomics at the forefront of the precision oncology market. The noninvasive test is designed to support therapy selection as it provides access to biomarker information when tissue samples are insufficient or unavailable. The test can analyze over 500 genes, including MSI and bTMB, to deliver actionable insights.
“As demand grows for faster, less invasive, and more accessible genomic testing, PanTracer LBx expands our addressable market, enhances our clinical portfolio, and opens new revenue streams in both therapy selection, trial matching, and disease monitoring. It’s a strategic milestone that underscores our commitment to sustainable growth and clinical leadership,” said Tony Zook, Chief Executive Officer.
PanTracer LBx will strengthen NeoGenomics’ pan-solid tumor CGP portfolio and position it in the growing $3 to $5 billion liquid biopsy market. It also strengthens its prospects in delivering deep insights to more patients across diverse care settings.
NeoGenomics, Inc. (NASDAQ:NEO) is a cancer diagnostics and pharma services company. It leverages AI in several key areas of oncology testing and diagnostics. It’s also actively involved in developing and implementing AI-powered tools for digital pathology.
2. Simulations Plus, Inc. (NASDAQ:SLP)
Stock Upside Potential: 97.27%
Number of Hedge Fund Holders: 13
Simulations Plus, Inc. (NASDAQ:SLP) is one of the top 10 medical AI companies to buy according to analysts. On July 29, the company confirmed that its artificial intelligence-driven drug design collaboration with the Institute of Medical Biology of the Polish Academy of Sciences (IMB PAS) has yielded promising results.
The positive results relate to the development of novel compounds targeting inflammation and immune responses. The results show that 70% of the 27 compounds designed using the ADMET Predictor software demonstrated significant inhibition of RORyT activity. The outcomes support the company’s algorithms and platform, which utilize machine learning and artificial intelligence to develop and optimize drugs for specific targets, providing clients with a first-to-invent advantage.
Simulations Plus and the Institute of Medical Biology of the Polish Academy of Sciences have been collaborating on developing RORγ/RORγT ligands. These molecules impact gene expression related to inflammation and immune responses.
Simulations Plus, Inc. (NASDAQ:SLP) integrates AI and machine learning (ML) into its modeling and simulation software to enhance drug discovery and development. It leverages AI/ML to predict drug behavior in the body, optimize chemical compounds, and accelerate the overall drug development process.
1. Butterfly Network, Inc. (NYSE:BFLY)
Stock Upside Potential: 150.00%
Number of Hedge Fund Holders: 33
Butterfly Network, Inc. (NYSE:BFLY) is one of the top 10 medical AI companies to buy, according to analysts. On August 1, Butterfly Network reported its Q2 2025 earnings with record revenue of $23.4 million, up 9% year-over-year. The company narrowed its loss per share to $0.03, outperforming forecasts, and boosted operational efficiency with gross margins climbing to 64%. Despite funding challenges in the healthcare sector impacting deal closures, Butterfly revised its full-year revenue outlook to $91–$95 million.
Looking ahead, the company aims to expand its Home Care and Octave business segments while introducing key innovations like the P5 chip and IQ Station. CEO Joseph DeVivo voiced strong confidence in Butterfly Network’s trajectory, proclaiming, “Butterfly is going to fly.” He reiterated the company’s mission to make ultrasound technology universally accessible and underscored the promising growth opportunities ahead, driven by cutting-edge innovations and strategic alliances.
Butterfly Network, Inc. (NYSE:BFLY) is a global provider of advanced ultrasound imaging solutions, offering handheld devices like the Butterfly iQ+, iQ3, and specialized systems for bladder scanning and veterinary use. Their products integrate seamlessly with mobile devices and hospital systems, supported by a cloud-based platform that includes educational tools, software subscriptions, and teleguidance features. The company also delivers professional services for large-scale deployments and sells through direct, distributor, and online channels.
While we acknowledge the potential of Butterfly Network, Inc. (NYSE:BFLY) to grow, 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 BFLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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