10 Best Medical AI Companies

3. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 52

Market Capitalization: $113.3 billion

Medtronic plc (NYSE:MDT) is a healthcare equipment company based in Ireland. It develops device-based medical therapies for healthcare systems, physicians, clinicians, and patients globally.

The combined portfolio of Medtronic plc (NYSE:MDT) is well-positioned to deliver growth to its investors. While the rise of weight loss drugs in 2023 initially caused concerns for medical device stocks like Medtronic plc (NYSE:MDT) within the investing community, it didn’t take long for investors to realize that the new weight loss drugs were not a miracle cure for diseases such as diabetes, resulting in device makers such as Medtronic plc (NYSE:MDT) being able to recoup their losses.

Apart from this, Medtronic plc (NYSE:MDT) is also set to benefit greatly from the AI revolution, as it already has six AI products that are FDA-approved. Examples include the company’s intelligent endoscopy tool that decreases miss rates on polyps and adenomas by a factor of 2x and its systems for surgery imaging and neurosurgery. In the diabetes market, Medtronic plc (NYSE:MDT) has its MiniMed 780G detection algorithm, which simplifies diabetes management by automatically adjusting insulin delivery every five minutes. These products have not only made Medtronic plc (NYSE:MDT) a leader in AI-driven medical care but have also resulted in the company experiencing significant financial growth. In the fourth quarter, Medtronic plc’s (NYSE:MDT) organic revenue growth was 5.4%, and the company ended the quarter with over $5 billion in free cash flow to support its dividend yield and $300 million annual share buyback. As a result, many investors are now buying into the company.

Medtronic plc (NYSE:MDT) had 52 hedge funds long its stock in the second quarter, with a total stake value of $2.3 billion.