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GE Collaborates With NVIDIA for AI in Healthcare Products

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General Electric Company (GE - Free Report) recently collaborated with visual computing firm NVIDIA Corporation (NVDA - Free Report) to incorporate state-of-the-art artificial intelligence (AI) in its healthcare imaging devices. The strategic deal will provide the industrial goods manufacturer an edge over its peers and augment its position in the market.

AI is the simulation of human intelligence in machines. With an increasingly competitive market, manufacturers aim to develop sophisticated products by integrating AI in machines to improve the efficiency and accuracy levels. The advent of data analytics has further enhanced the scope of using AI in machines and has improved the interoperability of products.

GE intends to leverage NVIDIA’s AI computing platform to develop Revolution Frontier CT — an advanced CT scan instrument — that is two times faster than the existing products available in the market. Cleared by the FDA, it is likely to offer superior clinical outcomes in liver lesion detection and kidney lesion. This would ultimately benefit patients with compromised renal function by eliminating unnecessary follow-ups and doctor visits.  

It has been reportedly found that less than 3% of more than 50 petabytes of data generated on an average by hospitals is tagged or analyzed. GE Healthcare aims to harness this data for improved patient outcome by combining AI into its medical devices. This is likely to augment its revenues with ease of use and higher clinical efficiency.

Shares of GE have underperformed the industry year to date, with an average loss of 42.5% compared with a decline of 5.7% for the latter. In order to boost the company’s sagging shares, CEO John Flannery has decided to focus on just three core segments — power, aviation and health-care equipment — and gradually exit all other businesses. GE further intends to sell assets worth $20 billion to improve its liquidity. The collaboration with NVIDA is a step in this regard.



GE currently has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the industry include Danaher Corporation (DHR - Free Report) and Leucadia National Corporation , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Danaher has a long-term earnings growth expectation of 10.6%. It has surpassed estimates in each of the trailing four quarters with an average positive surprise of 2.6%.

Leucadia has an expected long-term earnings growth rate of 18%. It has exceeded estimates thrice in the trailing four quarters with an average beat of 21.2%.  

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