10 Trending AI Health Stocks

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft’s AI capabilities are applied to healthcare through its Azure platform, which supports hospitals and pharmaceutical companies in data analysis, diagnostics, and personalized medicine. Microsoft Corporation (NASDAQ:MSFT) offers healthcare cloud solutions that have driven increased revenue from AI-powered tools for healthcare providers. Microsoft Corporation (NASDAQ:MSFT) recently unveiled new models within Azure AI Health Insights, which offers tools to help doctors, nurses and researchers make more informed decisions. The model, a patient timeline, gives clinicians a simple, chronological overview of a patient’s medical history by using generative AI to consolidate information from different unstructured data sources. The other model, called clinical report simplification, allows clinicians to use generative AI to simplify reports full of complex medical terminology into language that patients may understand better. And the final model, radiology insights, aims to help clinicians and radiologists by identifying errors and inconsistencies that can come up across different reports. The model can also offer follow-up recommendations.

Microsoft Corporation (NASDAQ:MSFT) has seen substantial growth in profits driven by its AI initiatives, particularly through its cloud services and AI-infused products. In fiscal year 2024, AI-related services contributed significantly to the company’s revenue growth, particularly in the Azure cloud platform, which saw a 30% increase in revenue, fueled by AI adoption. Microsoft reported an impressive 33% rise in overall profits during the second quarter of FY24, bringing net income to $21.9 billion, largely attributed to AI and cloud services expansion. With over 53,000 Azure AI customers and growing demand for AI-enhanced features, AI is becoming a major pillar of Microsoft’s business strategy.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Microsoft Corporation (NASDAQ:MSFT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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