Exploring the Position of NVIDIA (NASDAQ) Among Leading AI Health Stocks
We recently compiled a list of the 10 most trending AI health stocks, and today we’re examining how NVIDIA Corporation (NASDAQ: NVDA) stacks up against its competitors in the rapidly growing AI healthcare market.
AI Market Growth Projections
According to Statista Market Insights, the global artificial intelligence (AI) market is projected to reach $184 billion by 2024, with a compound annual growth rate (CAGR) of 28.46% extending into 2030. By then, the market is expected to hit a massive $826.70 billion. The U.S. is set to dominate this expansion, leading with a market size of $50.16 billion in 2024. AI’s influence across industries, particularly healthcare, is intensifying as demand for AI-driven innovation accelerates globally.
AI’s Expanding Role in Healthcare
The AI healthcare sector is also experiencing remarkable growth. As of 2022, this market was valued at $15.4 billion and is projected to grow at an impressive CAGR of 37.5%, potentially surpassing $187 billion by 2030, according to Grand View Research. This expansion is driven by AI advancements in diagnostics, robotic surgery, drug discovery, and patient monitoring. As healthcare systems shift towards more efficient and cost-effective solutions, the role of AI will only deepen.
Several trusted sources, including Fortune Business Insights and McKinsey, support these projections. AI’s healthcare applications are evolving rapidly, moving beyond diagnostics to include personalized medicine and AI-assisted surgeries. Recent FDA approvals for AI-powered medical tools further highlight this trend, signaling a growing demand for AI-driven solutions in healthcare.
Expert Insight into AI’s Healthcare Impact
Eric Topol, a cardiologist and AI expert, believes that AI is fundamentally reshaping healthcare. In his book, Deep Medicine: How Artificial Intelligence Can Make Healthcare Human Again, Topol argues that AI’s ability to handle data analysis and routine tasks allows doctors to focus more on patient care. He foresees that AI will not only boost efficiency but will also reduce physician burnout and improve patient outcomes by enhancing precision in diagnostics and treatments.
Our Investment Methodology
For this analysis, we focused on trending AI health stocks that show strong revenue growth through AI-driven healthcare solutions. These stocks have also gained considerable interest from hedge funds. Hedge fund activity is worth noting because, based on our research, tracking the top stock picks of leading hedge funds can lead to market outperformance. Our quarterly newsletter’s strategy, which selects 14 top stocks each quarter, has returned 275% since May 2014, outperforming its benchmark by 150 percentage points.
NVIDIA Corporation (NASDAQ: NVDA) Performance
Number of Hedge Fund Holders: 179
Though NVIDIA (NASDAQ: NVDA) is well-known for its hardware, the company’s AI technologies have become increasingly vital in healthcare, especially in areas such as diagnostics, drug discovery, and data analysis. NVIDIA’s Clara platform, which is powered by AI, offers cutting-edge tools for advanced medical imaging, genomics, and computational drug discovery. These capabilities allow healthcare professionals to process and analyze massive datasets swiftly and accurately.
NVIDIA’s financial performance reflects its growing impact on healthcare AI. In fiscal year 2023, the company generated $27 billion in revenue, with a 41% increase in data center revenue, where AI applications play a critical role. In the fourth quarter of the fiscal year, NVIDIA’s revenue surged by 53% year-over-year to $6.05 billion, driven in part by AI solutions in healthcare. This growth has been supported by partnerships with healthcare providers and rising demand for AI-enhanced diagnostics.
Where NVIDIA Ranks
NVIDIA ranks second on our list of trending AI stocks. While we see strong potential for NVIDIA as an investment, there are other AI stocks that may deliver even higher returns in a shorter period. If you’re searching for a stock with greater upside potential that trades at less than 5 times its earnings, it may be worth exploring alternatives to NVIDIA.
