Nvidia's processors and Super Micro Computer's servers are examples of technology companies that make AI hardware. These companies' earnings have grown due to sales to AI project developers. Because AI market development appears to be just beginning, they and their colleagues continue to make excellent investments.
But there's another way to invest in AI, and many future winners haven't taken off yet, so you can buy them cheaply today and benefit later. A Markets and Markets analysis predicts that the AI-in-healthcare market will reach $148 billion by the end of the decade, growing at 48% annually. In fact, Nvidia CEO Jensen Huang said this week that AI will likely have the greatest influence in healthcare.
1. Medtronic The medical device company Medtronic (NYSE: MDT) sells many devices in diabetes, cardiovascular, medical surgery, and neurological. Over the previous year, the company has approved 130 items in important geographies, indicating growth potential. Medtronic has increased sales and profit over time, and the company has streamlined processes and divested slower-growth businesses to focus on high-growth areas.
Picture looks bright. Additionally, Medtronic is ensuring its leadership in AI, which might change the industry. The corporation created an AI center of excellence to cost-effectively accelerate AI development across its businesses.
Five Medtronic AI products, from the GI Genius intelligent endoscopic equipment to the MiniMed 780G diabetes management system, have received regulatory approval. Medtronic reported "strong adoption" of its spine surgery AI-driven surgical planning solution in the last quarter.
All of this could drive Medtronic's future growth. Medtronic may gain additional users and income if these tools, like the surgical planning system, help surgeons improve results. Medtronic shares trade at 16x projected profits estimates, a steal for a billion-dollar growth market leader.
2. Moderna Moderna (NASDAQ: MRNA) developed the coronavirus vaccine, a global bestseller. In the early phases of the pandemic, Moderna's vaccine generated billions of dollars in sales, and it might continue to do so.
You may not know that Moderna also develops AI. The biotech has long used AI and integrated it into its business. Moderna designed possible medications in silico using machine learning for mRNA design in 2014. A few years later, the business created an AI system to produce individualized neoantigen therapy for clinical trial participants.
Moderna recently created an AI academy to train staff so the technology might improve productivity and precision across all departments. Moderna has invested in AI in different ways
Last year, the business launched a Seattle office to scale its AI use and partnered with IBM to study quantum computing and generative AI for mRNA medication development. Moderna uses IBM's MolFormer to analyze molecular characteristics and generate better drugs faster.
All of this should help Moderna create drugs faster and more efficiently. This might save time and money and create game-changing products. That might boost earnings over time, making Moderna's 8x future earnings estimate price look inexpensive.
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