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3 AI-Driven Medical Device Stocks to Watch in 2025

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Key Takeaways

  • BSX uses AI in diagnostics, imaging, and mapping systems to improve cardiac procedure outcomes.
  • JNJ integrates AI into robotic platforms and digital ecosystems for advanced surgical analytics.
  • GEHC leads in FDA-cleared AI devices and enhances imaging with tools like CleaRecon DL and ABUS Premium.

Globally, generative artificial intelligence (Gen AI) and agentic AI are increasingly being integrated into medical devices, transforming both clinical workflows and patient care. Gen AI is primarily being used for content creation and design optimization within the medical device space. For instance, Gen AI models generate synthetic medical images like magnetic resonance imaging (MRI), computed tomography (CT) and X-rays to train diagnostic tools and augment datasets.

NVIDIA (NVDA - Free Report) cofounded the Medical Open Network for AI (“MONAI”) with the world’s leading academic medical centers to establish an inclusive community of AI researchers, developing and exchanging best practices for AI in healthcare imaging across academia and enterprise researchers. Additionally, Gen AI powers real-time clinical documentation tools embedded within diagnostic devices, such as Nuance Communications’s Dragon Ambient eXperience (“DAX”). These devices transcribe doctor-patient conversations into structured clinical notes, minimizing administrative burden and enhancing documentation accuracy.

Alternatively, agentic AI enables medical devices to act autonomously and make decisions based on real-time data. Agentic AI also supports predictive maintenance in connected medical equipment, such as MRIs and ventilators. This enables fault detection and automated service scheduling, thereby reducing equipment downtime. In the surgical field, AI-guided robotic systems, such as Intuitive Surgical’s (ISRG - Free Report) da Vinci platform, are integrating agentic AI features to assist with real-time tissue navigation and instrument movement.

Here, we have picked three medical devices stocks, namely Boston Scientific Corporation (BSX - Free Report) , Johnson & Johnson (JNJ - Free Report) and GE HealthCare Technologies Inc. (GEHC - Free Report) , which are likely to perform well in 2025, driven by strong AI adoption.

Key Factors Driving the Adoption of AI in Medical Devices

Rising Demand for Precision and Personalized Medicine: AI enables medical devices to deliver highly individualized diagnostics and treatments. For instance, AI algorithms can analyze patient-specific imaging data or genetic profiles to guide the design of implants, surgical plans, or therapeutic regimens, improving patient outcomes.

Favorable Regulatory Environment: Regulatory oversight for AI in the United States falls under the FDA’s Software as a Medical Device (SaMD) segment. Over 700 AI-enabled devices have been approved, which is more than 10 times the number available in 2020. In January, the FDA released a draft guidance on adaptive AI systems, which have reduced uncertainty for developers, encouraging innovation and faster approvals.

3 Medical Devices Stocks to Bet On

Boston Scientific is a major manufacturer of interventional medical devices. The company has been investing in AI to support its devices and improve procedural outcomes. It’s HeartLogic is a heart failure diagnostic that utilizes AI to detect worsening heart failure in patients with implantable cardioverter-defibrillators (ICDs) and cardiac resynchronization therapy-defibrillators (CRT-Ds). The Rhythm AI module in the Rhythmia HDx mapping system can automatically interpret electroanatomical maps to identify arrhythmia circuits, enabling electrophysiologists to target ablation therapy more effectively. Meanwhile, the company’s Coronary Advanced Analysis software uses AI to analyze optical coherence tomography images to characterize plaque.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has a projected 2025 sales growth rate of 16.4%, higher than the industry’s flat growth. The company has a favorable current cashflow rate of 26.5% against the industry’s -2.6%. For 2025, its earnings are expected to grow 15.9%.

Johnson & Johnson is a healthcare conglomerate with a major MedTech division (Johnson & Johnson MedTech) focused on medical devices and diagnostics. The company employs AI for surgical robotics, digital surgery analytics and imaging. It has developed an ecosystem called Ottava, its next-gen robotic surgery platform, and the Caresurgical/VELYS digital surgery systems, which use data and AI for procedure planning. Its Polyphonic Digital Ecosystem connects operating rooms, allowing surgeons to share live video and data with remote peers. AI in this system helps identify significant events in the surgery video feed for discussion.

Johnson & Johnson, carrying a Zacks Rank #2 at present, has a historical earnings growth rate of 5.5%, higher than the industry’s 2.8%. The company has a net margin of 24.4%, outperforming the industry’s 18.6%. For 2025, its sales are expected to grow 2.8%.

GE HealthCare is a global leader in medical imaging, diagnostics and healthcare. AI is central to the company’s digital strategy, which focuses on its precision care framework. In 2023, it topped the FDA list of AI-enabled medical devices with 80 listed 510(k) clearances or authorizations to date in the United States. Recently, the company has launched CleaRecon DL — an AI-driven solution that enhances cone-beam computed tomography image quality. Also, its Invenia Automated Breast Ultrasound Premium, the latest 3D ultrasound, offers advanced AI and innovative features to drive faster, reproducible supplemental screening and streamline exam readings on patients with dense breasts.

GE HealthCare, carrying a Zacks Rank #3 (Hold) at present, has a projected 2025 sales growth rate of 3.2%, higher than the industry’s flat growth. The company has a favorable current cashflow rate of 9.7% against the industry’s -2.6%. 

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