Investors are interested in artificial intelligence (AI) because it could disrupt numerous industries, including healthcare. Why? Because this technology could tackle drug development's biggest issue—the long time it takes to bring a candidate to market. Better medications and medical gadgets could improve patient outcomes.
All of this means major corporations' earnings may skyrocket. Markets and Markets research predicts that the AI in healthcare industry would rise 48% annually to $148 billion by 2029, thus we're only beginning this wonderful narrative. Ready to invest on top players early? Consider buying and holding these two AI in healthcare stocks for their long-term potential.
Moderna (NASDAQ: MRNA) shares surged during the pandemic due to the successful commercialization of its coronavirus vaccine, generating billions in earnings. Vaccine demand is declining, and while the product may generate recurrent revenue during fall vaccination seasons, it's not expected to rebound to previous levels. This worries investors about the biotech's future.
There's hope for this smart company. Moderna prioritizes AI and has numerous late-stage candidates. The company has used the technology to speed up vaccine development procedures for researchers. It also partnered with IBM last year to boost its research with its technology.
To produce better mRNA therapies faster, it's leveraging IBM's foundation model MolFormer to forecast molecular attributes. This might speed up product release, giving Moderna new revenue streams.
Moderna is using AI across the firm to improve efficiency and performance. Moderna would "embrace this new technology to transform how we work at Moderna across everything we do," CEO Stéphane Bancel stated at an investment event last year. Thus, Moderna's stock may be low now, but AI might help it rebound and rise.
2. Medtronic Medtronic (NYSE: MDT) sells medical devices in diabetes, cardiovascular, medical surgical, and neurology markets. A robust pipeline continues to generate new income potential for the company, which won 130 product approvals in important geographies last year.
The medical equipment firm has grown earnings throughout time, but its efforts to streamline and improve efficiency and its early entry into the AI in healthcare sector may be driving fresh growth.
Five Medtronic AI products, from the GI Genius intelligent endoscopic system to the MiniMed 780G diabetes management system, have been approved. These and Medtronic's other AI-powered solutions can improve patient outcomes and surgeon performance. That means patients and hospitals may want these things more over time.
Medtronic has an AI center of excellence to speed AI research throughout the organization, and this early AI participant claims the technology might revolutionize healthcare with tailored treatment. Thus, Medtronic, a successful, long-term corporation, may lead the AI race. At 15 times forward earnings expectations, the company is a good purchase and hold for the long term.
stay turned for development