We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 MedTech Stocks With Potential to Benefit From AI Boom in 2024
Read MoreHide Full Article
The launch of ChatGPT by Sam Altman’s OpenAI for the general public in November 2022, was a significant leap for technology and humankind. The OpenAI’s ChatGPT is an artificial intelligence (AI) powered chatbot that is capable enough to generate any text-based content, including articles, reports, course curriculum and books, with a simple query in English without any technical jargon. The chatbot can also write programming codes and debug them, paving the way for easier development of new tools. Microsoft is one of the biggest investors in OpenAI.
Although ChatGPT is currently the most popular AI technology available to the public, several big tech companies like Alphabet and Meta are also building their AI technologies. Apart from big players, several startups have mushroomed that are also leveraging AI to develop tools. The technological innovations have received a major boost with AI. This is likely to propel not only the tech companies but also all industries going forward.
AI in MedTech Industry
The medical sector is one of the early adopters of AI. Several companies from this sector have been experimenting and integrating this advanced technology for many years. AI is currently being used to synthesize new compounds for drugs and create devices for more precise measurement and faster and more accurate diagnosis.
Several medical device makers are developing surgical robots with AI integration for complex and specialized procedures. The companies are integrating AI into data analytics for better understanding and faster query resolution, thereby improving patient outcomes.
Image Source: Zacks Investment Research
AI also helps make prosthetics and improve the quality of healthcare data. Moreover, it helps improve the image quality during surgery, assisting medical staff with patients in the operating room. Intuitive Surgical, known for its da Vinci Surgical System, remains a frontrunner in AI-driven medical devices, with its robotic-assisted surgery technology gaining widespread adoption.
The application of AI will be widespread in every sector, including medical devices. With the availability of AI for the general public, we will likely see more new tools in the market driving the companies’ efficiency in several years to come.
The companies that have already started to integrate AI within their business processes are likely to be winners in 2024. Here, we will discuss three medical device-makers that have strong growth potential in 2024 due to their investments in AI.
3 Medical Device Stocks to Ride on AI Boom
Increasing optimism in AI space is evident from strong performance of Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) , which has surged 51.4% year to date compared with the S&P 500's 25.4% increase.
Image Source: Zacks Investment Research
Investors looking to tap the budding prospects in this lucrative AI market can count on Medtronic (MDT - Free Report) , GE HealthCare Technologies (GEHC - Free Report) and Hologic (HOLX - Free Report) .
Medtronic's concerted efforts in integrating AI into its diverse range of medical devices underscore its commitment to driving technological innovation in healthcare. These initiatives position the company at the forefront of the evolving landscape, aiming to deliver more effective, personalized and data-driven solutions to improve patient outcomes.
MDT has embarked on incorporating AI into its surgical robotics portfolio that will help enhance the precision and capabilities of minimally invasive procedures, expanding the scope of application in various medical specialties. The company is investing in AI for cardiovascular devices and neurology-focused devices, including brain stimulation systems.
Medtronic leverages AI for data analytics, extracting valuable insights from the vast datasets generated by its devices. This approach contributes to evidence-based practices, research initiatives and the continuous improvement of healthcare delivery.
This year, Medtronics partnered with NVIDIA, a leader in AI computing, to integrate the latter’s Holoscan and IGX technologies into its GI Genius AI-assisted colonoscopy system. MDT also launched a cloud-based platform, AI Access, which enables third-party developers to train and validate their own AI models for GI care, and distribute them via the GI Genius system.
The company is expanding its global presence and partnerships, such as those with Cosmo Pharmaceuticals and IBM Watson Health, to deliver AI-based solutions to more customers and markets.
Medtronics' AI-based initiatives are expected to improve its competitive edge, customer satisfaction and market share in the medical device industry. It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE HealthCare’s strategic implementation of AI underscores its commitment to advancing healthcare through cutting-edge technologies. This positions the company as a key player in the evolving landscape of AI in medical technologies, aiming to deliver more accurate diagnostics, personalized treatment options and streamlined healthcare operations.
The company is employing AI algorithms to improve the precision and efficiency of image interpretation, contributing to early and accurate disease detection. It is at the forefront of utilizing AI for predictive analytics in patient monitoring by leveraging real-time data.
GEHC developed the Edison platform, a healthcare-specific intelligence platform that enables the development and deployment of AI applications across devices, modalities and care settings. It has also launched several AI-powered products and solutions, such as the Critical Care Suite, which uses AI to detect pneumothorax and other critical findings in chest X-rays; the AIRx platform, which uses AI to automate and optimize brain MRI scans; and the Holoscan and IGX technologies, which use AI to enhance image quality and performance in an ultrasound system.
GE HealthCare is expanding its global presence and partnerships, such as those with NVIDIA, a leader in AI computing, to integrate its AI technologies into its products and solutions. The currently Zacks Rank #3 company is committed to advancing and refining its AI roadmap to provide better outcomes for healthcare.
Hologic has invested in AI technologies to enhance the diagnostic accuracy of its imaging devices, particularly in the area of mammography. AI algorithms aim to assist healthcare professionals in interpreting medical images with greater precision. The company has developed AI-driven solutions for remote patient monitoring, enabling personalized and proactive healthcare interventions.
HOLX is also focusing on utilizing AI for the analysis of large datasets generated by its devices. This will likely help in accelerating clinical decision-making with valuable insights for ongoing research and development. It is also developing its molecular diagnostics platforms with AI that will facilitate more sophisticated analysis of genetic and molecular data, and better identification of specific disease markers, providing more precise treatment strategies.
Hologic developed Genius AI Detection 2.0, a deep-learning-based software that detects potential cancers in breast tomosynthesis images. The company has also enhanced its SecurView 12.0 solution, which enables more multimodality capabilities, including reading breast ultrasound cases directly in the SecurView viewer.
Demand for Hologic’s products will likely gain from a focus on AI and its further development. The company currently carries a Zacks Rank of 3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 MedTech Stocks With Potential to Benefit From AI Boom in 2024
The launch of ChatGPT by Sam Altman’s OpenAI for the general public in November 2022, was a significant leap for technology and humankind. The OpenAI’s ChatGPT is an artificial intelligence (AI) powered chatbot that is capable enough to generate any text-based content, including articles, reports, course curriculum and books, with a simple query in English without any technical jargon. The chatbot can also write programming codes and debug them, paving the way for easier development of new tools. Microsoft is one of the biggest investors in OpenAI.
Although ChatGPT is currently the most popular AI technology available to the public, several big tech companies like Alphabet and Meta are also building their AI technologies. Apart from big players, several startups have mushroomed that are also leveraging AI to develop tools. The technological innovations have received a major boost with AI. This is likely to propel not only the tech companies but also all industries going forward.
AI in MedTech Industry
The medical sector is one of the early adopters of AI. Several companies from this sector have been experimenting and integrating this advanced technology for many years. AI is currently being used to synthesize new compounds for drugs and create devices for more precise measurement and faster and more accurate diagnosis.
Several medical device makers are developing surgical robots with AI integration for complex and specialized procedures. The companies are integrating AI into data analytics for better understanding and faster query resolution, thereby improving patient outcomes.
Image Source: Zacks Investment Research
AI also helps make prosthetics and improve the quality of healthcare data. Moreover, it helps improve the image quality during surgery, assisting medical staff with patients in the operating room. Intuitive Surgical, known for its da Vinci Surgical System, remains a frontrunner in AI-driven medical devices, with its robotic-assisted surgery technology gaining widespread adoption.
The application of AI will be widespread in every sector, including medical devices. With the availability of AI for the general public, we will likely see more new tools in the market driving the companies’ efficiency in several years to come.
The companies that have already started to integrate AI within their business processes are likely to be winners in 2024. Here, we will discuss three medical device-makers that have strong growth potential in 2024 due to their investments in AI.
3 Medical Device Stocks to Ride on AI Boom
Increasing optimism in AI space is evident from strong performance of Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) , which has surged 51.4% year to date compared with the S&P 500's 25.4% increase.
Image Source: Zacks Investment Research
Investors looking to tap the budding prospects in this lucrative AI market can count on Medtronic (MDT - Free Report) , GE HealthCare Technologies (GEHC - Free Report) and Hologic (HOLX - Free Report) .
Medtronic's concerted efforts in integrating AI into its diverse range of medical devices underscore its commitment to driving technological innovation in healthcare. These initiatives position the company at the forefront of the evolving landscape, aiming to deliver more effective, personalized and data-driven solutions to improve patient outcomes.
MDT has embarked on incorporating AI into its surgical robotics portfolio that will help enhance the precision and capabilities of minimally invasive procedures, expanding the scope of application in various medical specialties. The company is investing in AI for cardiovascular devices and neurology-focused devices, including brain stimulation systems.
Medtronic leverages AI for data analytics, extracting valuable insights from the vast datasets generated by its devices. This approach contributes to evidence-based practices, research initiatives and the continuous improvement of healthcare delivery.
This year, Medtronics partnered with NVIDIA, a leader in AI computing, to integrate the latter’s Holoscan and IGX technologies into its GI Genius AI-assisted colonoscopy system. MDT also launched a cloud-based platform, AI Access, which enables third-party developers to train and validate their own AI models for GI care, and distribute them via the GI Genius system.
The company is expanding its global presence and partnerships, such as those with Cosmo Pharmaceuticals and IBM Watson Health, to deliver AI-based solutions to more customers and markets.
Medtronics' AI-based initiatives are expected to improve its competitive edge, customer satisfaction and market share in the medical device industry. It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE HealthCare’s strategic implementation of AI underscores its commitment to advancing healthcare through cutting-edge technologies. This positions the company as a key player in the evolving landscape of AI in medical technologies, aiming to deliver more accurate diagnostics, personalized treatment options and streamlined healthcare operations.
The company is employing AI algorithms to improve the precision and efficiency of image interpretation, contributing to early and accurate disease detection. It is at the forefront of utilizing AI for predictive analytics in patient monitoring by leveraging real-time data.
GEHC developed the Edison platform, a healthcare-specific intelligence platform that enables the development and deployment of AI applications across devices, modalities and care settings. It has also launched several AI-powered products and solutions, such as the Critical Care Suite, which uses AI to detect pneumothorax and other critical findings in chest X-rays; the AIRx platform, which uses AI to automate and optimize brain MRI scans; and the Holoscan and IGX technologies, which use AI to enhance image quality and performance in an ultrasound system.
GE HealthCare is expanding its global presence and partnerships, such as those with NVIDIA, a leader in AI computing, to integrate its AI technologies into its products and solutions. The currently Zacks Rank #3 company is committed to advancing and refining its AI roadmap to provide better outcomes for healthcare.
Hologic has invested in AI technologies to enhance the diagnostic accuracy of its imaging devices, particularly in the area of mammography. AI algorithms aim to assist healthcare professionals in interpreting medical images with greater precision. The company has developed AI-driven solutions for remote patient monitoring, enabling personalized and proactive healthcare interventions.
HOLX is also focusing on utilizing AI for the analysis of large datasets generated by its devices. This will likely help in accelerating clinical decision-making with valuable insights for ongoing research and development. It is also developing its molecular diagnostics platforms with AI that will facilitate more sophisticated analysis of genetic and molecular data, and better identification of specific disease markers, providing more precise treatment strategies.
Hologic developed Genius AI Detection 2.0, a deep-learning-based software that detects potential cancers in breast tomosynthesis images. The company has also enhanced its SecurView 12.0 solution, which enables more multimodality capabilities, including reading breast ultrasound cases directly in the SecurView viewer.
Demand for Hologic’s products will likely gain from a focus on AI and its further development. The company currently carries a Zacks Rank of 3.