Dexcom has become the first company to launch a generative AI-powered continuous glucose monitor. The San Diego healthcare company announced the launch of its proprietary product after leveraging Google’s Gemini models and Google’s Cloud’s Vertex AI platform.
Dexcom is a developer and marketer of continuous glucose monitoring (CGM) systems for people with diabetes. The company aims to simply glucose monitoring while incorporating the latest technology to empower individuals in monitoring their glucose levels.
The sale of CGM devices is the primary revenue generator for the company, along with software and other services. Its top products include the Dexcom G6 which provides real-time glucose monitoring, Dexcom G7 which is user-friendly and known for its accuracy, Dexcom Share System which allows remote monitoring, and the Dexcom CLARITY software which is a diabetes management tool that helps the user track their glucose readings.
The company’s end market is individuals with Type 1 and Type 2 diabetes. It fulfills the needs of these individuals through direct sales as well as through insulin delivery systems partnerships.
As an innovator in the field, it is no surprise that the company has successfully integrated generative AI into its device. The AI will produce weekly insights from this week on. Through these insights, the company will educate users regarding diet, exercise, and sleep as well as provide personalized recommendations and tips.
The COO and EVP of Dexcom, Jake Leach, had this to say about the development:
The launch of our GenAI platform reinforces our long-standing reputation as the glucose biosensing leader and opens the door for future advancements across our product portfolio. Innovation is at the core of what we do. We look forward to introducing additional GenAI-powered features over the next year…
If the management’s intention is anything to go by, one can expect Dexcom to continue to be the leader in innovation when it comes to glucose monitoring. Having said that, it was management’s missteps in the first place that caused the stock to perform badly this year. The threat of weight loss drugs removing the need to monitor glucose levels is also real. However, as long as the company continues to innovate, one can expect that its technology won’t become irrelevant.
DXCM is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held DXCM at the end of the third quarter which was 64 in the previous quarter. While we acknowledge the potential of DXCM as a leading 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 as promising as DXCM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.
Hedge Fund Resource Center