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Johnson & Johnson (JNJ), Nvidia Unite to Boost AI for Surgery
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Johnson & Johnson’s (JNJ - Free Report) wholly-owned subsidiary, Johnson & Johnson MedTech, recently announced its partnership with Nvidia to accelerate secure, real-time analysis of surgical data using artificial intelligence (AI).
The two businesses collaborated to enable more global availability of AI algorithms and real-time analytical access. Their goal is to have an impact on surgical decision-making, teamwork, and education in all linked operating rooms (ORs).
Price Performance
For the past six months, JNJ’s shares have lost 0.3% compared with the industry’s decline of 2.3%. The S&P 500 increased 12.0% in the same time frame.
Image Source: Zacks Investment Research
More on the Collaboration
Per the press release, Johnson & Johnson and Nvidia signed a memorandum of understanding to use Nvidia's AI platform for healthcare. The company is planning to accelerate AI for its broad surgical MedTech technologies portfolio. Through its digital surgery ecosystem, Johnson & Johnson MedTech claimed that the technologies enable quick, safe, and real-time AI implementation.
The companies believe that the key to speeding up AI surgery is enhanced edge computing, which enables localized data processing in the OR. This allows for real-time analysis of stored and live surgical data by AI algorithms. According to Johnson & Johnson MedTech, the strategy may also lessen the requirement for sensitive data transfers.
Enhanced computing also permits the execution of particular apps independently within the safe computing environment. In the OR, this provides extremely low latency where timing is critical. Infrastructure for implementing AI-powered applications in the OR is created by Nvidia's Holoscan edge AI platform and IGX edge computing platform.
According to Johnson & Johnson MedTech, it also intends to use AI to expand its surgical open ecosystem. Nvidia's products may hasten innovation across the ecosystem and expedite the safe and scalable development and implementation of AI-powered applications.
Industry Prospects
Per a report by MarketsandMarkets, the global AI in healthcare market size is valued at $20.9 billion in 2024 and is expected to reach $148.4 billion by 2029 at a growth rate of 48.1%.
Growth of AI in the healthcare market is driven by the generation of large and complex healthcare datasets, the pressing need to reduce healthcare costs, improving computing power and declining hardware costs, and the rising number of partnerships among different domains in the healthcare sector.
Given the market potential of AI in healthcare, Johnson & Johnson’s collaboration with Nvidia is likely to boost its business and generate additional revenues.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.
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Johnson & Johnson (JNJ), Nvidia Unite to Boost AI for Surgery
Johnson & Johnson’s (JNJ - Free Report) wholly-owned subsidiary, Johnson & Johnson MedTech, recently announced its partnership with Nvidia to accelerate secure, real-time analysis of surgical data using artificial intelligence (AI).
The two businesses collaborated to enable more global availability of AI algorithms and real-time analytical access. Their goal is to have an impact on surgical decision-making, teamwork, and education in all linked operating rooms (ORs).
Price Performance
For the past six months, JNJ’s shares have lost 0.3% compared with the industry’s decline of 2.3%. The S&P 500 increased 12.0% in the same time frame.
Image Source: Zacks Investment Research
More on the Collaboration
Per the press release, Johnson & Johnson and Nvidia signed a memorandum of understanding to use Nvidia's AI platform for healthcare. The company is planning to accelerate AI for its broad surgical MedTech technologies portfolio. Through its digital surgery ecosystem, Johnson & Johnson MedTech claimed that the technologies enable quick, safe, and real-time AI implementation.
The companies believe that the key to speeding up AI surgery is enhanced edge computing, which enables localized data processing in the OR. This allows for real-time analysis of stored and live surgical data by AI algorithms. According to Johnson & Johnson MedTech, the strategy may also lessen the requirement for sensitive data transfers.
Enhanced computing also permits the execution of particular apps independently within the safe computing environment. In the OR, this provides extremely low latency where timing is critical. Infrastructure for implementing AI-powered applications in the OR is created by Nvidia's Holoscan edge AI platform and IGX edge computing platform.
According to Johnson & Johnson MedTech, it also intends to use AI to expand its surgical open ecosystem. Nvidia's products may hasten innovation across the ecosystem and expedite the safe and scalable development and implementation of AI-powered applications.
Industry Prospects
Per a report by MarketsandMarkets, the global AI in healthcare market size is valued at $20.9 billion in 2024 and is expected to reach $148.4 billion by 2029 at a growth rate of 48.1%.
Growth of AI in the healthcare market is driven by the generation of large and complex healthcare datasets, the pressing need to reduce healthcare costs, improving computing power and declining hardware costs, and the rising number of partnerships among different domains in the healthcare sector.
Given the market potential of AI in healthcare, Johnson & Johnson’s collaboration with Nvidia is likely to boost its business and generate additional revenues.
Johnson & Johnson Price
Johnson & Johnson price | Johnson & Johnson Quote
Zacks Rank & Stocks to Consider
JNJ carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.