Artificial intelligence is being applied across the healthcare sector to improve delivery overall. AI stocks have the potential to impact stock sectors across the market positively, and healthcare is no different in that regard.
Healthcare firms are leveraging artificial intelligence to change the industry overall fundamentally. For example, AI is being applied to Fields such as drug discovery and development. Artificial intelligence increases the speed with which it is possible to discover target compounds and genes as just one example.
Further, artificial intelligence is being applied in healthcare to improve fields such as personal medicine and may lead to breakthroughs such as gene therapy. Artificial intelligence can also be leveraged to increase the speed and accuracy of medical diagnoses. In short, artificial intelligence has the potential to fundamentally improve Healthcare and increase the price of stocks in the sector.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is best known for its da Vinci robotic surgical systems. The company has leveraged artificial intelligence to improve healthcare delivery overall.
In July, the company launched its first digital tool that utilizes artificial intelligence to help surgeons better understand case data. That tool leverages data collected across its Da Vinci devices and Delivers correlations derived from that data.
Further, Intuitive Surgical has embedded AI into many of its products and systems. For example, the company embedded AI into its stapler system, and AI has been used to measure the pressure with which the stapler works. That data is being used to create optimal outcomes for procedures. Of course, Intuitive Surgical is also applying AI to imaging, which is then fed into the DaVinci systems’ pre-operation.
Fundamentally, the company continues to perform well with revenues increasing by 12% during the most recent period as procedure volume increased by 19%.
GE Healthcare Technologies (GEHC)
GE Healthcare Technologies (NASDAQ:GEHC) has only existed as an independent entity for slightly less than a year. The company was spun out of its parents in December last year and has performed well since.
GE Healthcare Technologies released earnings at the end of October which were strong. The company reported better-than-expected earnings and margins that increased share prices.
So, there continue to be many reasons to consider investing in the stock from a fundamental perspective.
Gee Healthcare Technologies has recently released a few press releases that indicate the company continues to focus on the application of AI to healthcare.
For example, on Nov. 26th, the company announced that it had showcased more than 40 innovations. Among those were AI-enabled Imaging and ultrasound products and services. The company appears to be developing products and services to fill the expected gap within the radiology field. It is expected that there will be a shortfall of radiologists between now and 2033.
Then, a day later, on November 27th, the firm announced that it had released a suite of AI-enabled products and services called MyBreastAI. The suite is intended to increase the speed with which clinicians diagnose breast cancer.
Schrodinger (SDGR)
Schrodinger (NASDAQ:SDGR) is a company that provides software solutions to the pharmaceutical industry. The company engages in drug discovery that leverages physics and machine learning to speed the drug discovery process.
The company leverages physics-based models to understand the properties of a given compound. That means the company uses computational models to understand binding affinity and absorption to identify suitable compounds as potential drug candidates. The company feeds that data through a complex machine-learning model to help identify appropriate compounds more accurately and quickly.
The company is one of the leading names in the drug discovery sector. It benefits from solid reception and high price targets based on Wall Street. This makes it one of those stocks pioneering AI in healthcare.
Third-quarter revenues grew to $42.6 million from $37 million. Schrodinger’s software sales revenue increased during the period; however, investors should know that the company continues to produce losses overall.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.