We recently compiled a list of the Top 10 Medical AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Boston Scientific Corp (NYSE:BSX) stands against the other medical AI stocks.
Investments in the global healthcare industry have ramped up sharply since the COVID-19 pandemic. With the advent of artificial intelligence (AI), the industry witnessed a rapid transformation in early disease detection, genomic research, drug discovery, clinical processes, and treatment efficacy prediction.
According to a 2023 PwC report, the AI market in healthcare was valued at $11 billion and is expected to grow to $188 billion by 2030. On January 21st, Oracle Co-founder Larry Ellison said during a White House speech that AI plays an integral role in early cancer detection and vaccine development. He highlighted how AI could help detect tiny tumor fragments and assist in gene-sequencing malignancies for the development of mRNA vaccines at a rapid speed for customized cancer treatment options.
Furthermore, AI is speeding up accurate decision-making by aligning big health data with pattern recognition systems, improving patient outcomes by ensuring timely clinical intervention.
During a fireside chat at the annual J.P. Morgan Healthcare Conference on January 13th, Mayo Clinic chief administrative officer Christina Zorn shared how the company addresses potential future healthcare worker shortages and improves cancer care by leveraging AI in robotics and pathology database management.
“We’re going to use, essentially, the robots to be a member of the healthcare team in the healthcare spaces,” she said. “We saw a paradigm shift in healthcare. You’re either going to disrupt from within, or you’re going to be disrupted,” she said.
The significant growth potential in the evolving AI healthcare industry is driving investor interest in the sector as drug discovery and development companies continue to announce new-gen breakthroughs.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A surgeon examining a patient’s brain in an operating room, paramedics nearby.
Boston Scientific Corp (NYSE:BSX)
Number of Hedge Fund Holders: 60
Boston Scientific Corp (NYSE:BSX) is a biomedical engineering firm that manufactures medical devices used in interventional medical specialties, including cardiology, neurology, oncology, urology, and gynaecology. The company has heavily invested in AI-driven health solutions to streamline operations, enhance in-patient engagement for better care, and empower healthcare professionals with accurate data for faster and more accurate decision-making.
On January 21st, Barclays hiked Boston Scientific Corp’s (NYSE:BSX) target price to $111 from $86 and retained its “Overweight” rating. While the medtech industry outlook for 2025 will depend on factors like inflation, surgical volumes, and policy changes under the new US Administration, Barclays remains “generally bullish” on the fundamentals of most end markets. It highlighted that utilization appears to be ending the year at a “healthy clip,” and low unemployment rates favor continued healthcare utilization and surgical procedure growth.
Overall BSX ranks 8th on our list of the medical AI stocks on Wall Street’s radar. While we acknowledge the potential of BSX as an investment, our conviction lies in the belief that 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 BSX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.