We recently compiled a list of the 10 Buzzing AI Health Stocks. In this article, we are going to take a look at where HCA Healthcare, Inc. (NYSE:HCA) stands against the other buzzing AI health stocks.
The economic impact of AI is projected to be substantial, particularly in regions like China and North America, which are expected to see GDP boosts of 26% and 14.5%, respectively, by 2030, amounting to $10.7 trillion combined. This surge is mirrored in the healthcare sector, where AI is driving transformative growth. According to SNS Insider, the Artificial Intelligence in Healthcare Market, valued at USD 22.5 billion in 2023, is forecasted to reach a staggering USD 370.14 billion by 2032, expanding at an impressive CAGR of 36.5% from 2024 to 2032. This explosive growth underscores the growing role of AI in revolutionizing healthcare through innovations in diagnostics, treatment, and operational efficiency.
The World Economic Forum also points out that AI’s potential in healthcare is particularly promising, given the global shortage of healthcare professionals, projected to reach 10 million by 2030. AI can alleviate the strain by automating routine tasks, reducing physicians’ administrative workloads, and enabling earlier and more accurate diagnoses. This has sparked strong investment from both public and private sectors globally, making AI a key technology in the future of healthcare finance.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
AI’s integration into healthcare is set to not only drive efficiency but also improve patient outcomes through more precise diagnostics and personalized treatment. Companies have responded by heavily investing in AI R&D, and mergers and acquisitions have accelerated the pace of innovation. As healthcare increasingly embraces AI, experts emphasize the potential for even greater transformations. According to Andrew Ng, a pioneer in AI research, “AI will fundamentally shift the healthcare landscape, enhancing diagnostic accuracy and optimizing patient care while reducing costs.”
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.
Our Methodology
For this article, we selected trending health stocks that have AI products driving meaningful revenue gains. These stocks are also popular among 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 team of healthcare professionals in lab coats and masks meeting at a hospital ward.
HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 69
HCA Healthcare, Inc. (NYSE:HCA) provides health care services in the United States. The company has implemented AI across its network of hospitals to enhance patient care, improve operational efficiencies, and reduce costs. Through AI-powered predictive analytics, HCA Healthcare is able to monitor patient data in real time, predicting potential complications before they occur. The company’s AI tools also streamline administrative workflows, allowing healthcare professionals to focus more on patient care.
In 2023, HCA Healthcare reported $66.9 billion in revenue, an increase from $64.1 billion in 2022. Revenues in the fourth quarter of 2023 totaled $17.303 billion, compared to $15.497 billion in the fourth quarter of 2022. This growth was largely due to the implementation of AI-driven systems, which have improved patient outcomes and reduced hospital readmission rates. HCA expects continued financial improvement as AI further integrates into its hospital operations, driving both clinical and administrative efficiencies.
Overall HCA ranks 3rd on our list of the buzzing AI health stocks to buy. While we acknowledge the potential of HCA 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 HCA 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.
