The Artificial Intelligence Opportunity Beyond Big Tech: 3 Healthcare Stocks to Watch
These companies' innovative qualities could help them get ahead of their peers in capitalizing on AI.
The Artificial Intelligence Opportunity Beyond Big Tech: 3 Healthcare Stocks to Watch
Overview
Investors looking to capitalize on the rapidly growing artificial intelligence (AI) industry tend to turn toward leading tech corporations. That's understandable. Several major tech companies have produced amazing returns over the past few years thanks to their AI-related work. However, AI is changing every sector, and companies outside the tech industry will benefit from this revolution as well. With that said, let's consider three healthcare stocks worth watching that are well-positioned to cash in on AI: Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Intuitive Surgical (NASDAQ: ISRG).
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Developing new drugs is expensive and time-consuming. It can take over a decade and cost about $2.8 billion. AI could help change that, and Eli Lilly is working hard to make it happen. The pharmaceutical leader partnered with Nvidia (NASDAQ: NVDA) to build the industry's most powerful supercomputer. Eli Lilly could see serious benefits from this initiative. According to some research, AI could help cut the drug discovery phase -- which typically takes between three and six years -- by a year or two. That would lead to meaningful cost savings for a company like Eli Lilly, which has a large portfolio of investigational medicines. It will also help boost the company's margins while allowing it to invest more in R&D and offer drugs at lower prices to patients.
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Originally published at www.fool.com.
