The increasing demand for accuracy and personalized medicine has significantly increased the need for artificial intelligence (AI)-enabled medical devices to provide highly personalized diagnosis and treatment.
At this stage, investing in huge medical stocks with a strict focus on AI applications should be fruitful. The four such companies are: Boston Scientific Corporation BSX, Johnson & Johnson JNJ, GE Healthcare Technologies Inc. gehc and Tempus AI Inc. TEM. Each pick has a Zacks rank #2 (purchase). Here you can see the full list of today's Zacks #1 rank (strong purchase) stocks.
Globally, generative artificial intelligence and agent AI are increasingly integrated into medical devices, transforming both clinical workflows and patient care. AI algorithms can analyze patient-specific imaging data or genetic profiles to guide the design of implants, surgical plans, or treatment regimens, and improve patient outcomes.
Generated AI is primarily used to optimize content creation and design within medical device spaces. Generated AI powers real-time clinical documentation tools built into diagnostic devices.
Agent AI allows medical devices to act autonomously and make decisions based on real-time data. Agent AI also supports predictive maintenance of connected medical devices such as MRIs and ventilators.
Boston Scientific has strengths across its target market despite macroeconomic issues, primarily tariff tensions and associated cost inflation. BSX is investing in AI to support devices and improve procedural outcomes.
Strong demand for Medorug and cardiovascular lines, US traction, and international demand for the next generation of Watchmen FLX and FLX Pro are key drivers. The cardiac logic of BSX is a cardiac failure diagnosis that utilizes AI to detect heart failure in patients with implantable, resonant, resonant defibrillators (ICDS) and cardiac resynchronization therapy control agents (CRT-DS).
The rhythm AI module of the Rhythmia HDX Mapping System automatically interprets electroanalytic maps to identify arrhythmic circuits, allowing electrophysiologists to target ablation therapy more effectively. BSX's coronary advanced analysis software uses AI to analyze optical coherence tomography images to characterize plaques.
Boston Scientific is expected to grow revenue and revenues of 18.3% and 18.7% this year, respectively. Zacks Consensus estimates of revenue this year have improved by 2.4% over the past 30 days.
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Johnson & Johnson boasts a major Medtech division (Johnson & Johnson Medtech) focusing on medical devices and diagnostics. JNJ applies AI technology to surgical robotics, digital surgical analysis and imaging. The company has developed an AI-enabled ecosystem called Ottava, the next-generation robotic surgical platform.
JNJ also developed a Caresurgical/Velys digital surgical system that uses data and AI for treatment planning. Its polyphonic digital ecosystem connects the operating room and allows surgeons to share live video and data with remote peers. The AI in this system will help identify important events in the surgical video feed for discussion.
Johnson & Johnson is expected to see revenue and revenue growth rates of 5.2% and 8.8%, respectively, this year. Zacks Consensus estimates of revenue this year have improved by 0.1% over the past 30 days.
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GE Healthcare Technologies has experienced strong market demand across the US and global healthcare sector due to increased procedures, hospital capital investments, and the adoption of AI-driven imaging and diagnostics. AI is at the heart of GEHC's digital strategy and focuses on precision care frameworks.
GEHC has released CleareCon DL. This is an AI-driven solution that improves image quality for cone beam computed tomography. GEHC's Invenia Automatic Breast Ultrasound Premium offers advanced AI and innovative features to promote advanced, reproducible supplementary screening and to facilitate reading of test measurements in dense breast patients.
GE Healthcare Technologies is expected to grow revenue and revenues of 3.5% and 0.9% this year, respectively. Zacks Consensus estimates of revenue this year have improved by 12.7% over the past 30 days.
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Tempus AI is a technology company that promotes precision medicine primarily through the practical application of artificial intelligence in healthcare. TEM provides AI-enabled precision medical solutions to physicians, providing personalized patient care and in parallel to discover, develop and deliver the most suitable therapeutic agents.
TEM's AI applications include analyzing patient data, generating clinical notes, identifying gaps in care, and assisting in treatment decisions, particularly in oncology and cardiac disease. TEM combines data containing phenotypic, morphological, and molecular data from a variety of sources to provide a more comprehensive view of the patient's condition.
Tempus AI's revenue and revenue growth rates were 81.1% and 55.7% this year, respectively. Zacks Consensus estimates of revenue this year have improved by 2.9% over the past 30 days.
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Boston Scientific Corporation (BSX): Free Stock Analysis Report
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This article was originally published on Zacks Investment Research (zacks.com).
