DeepSeek’s rise has spotlighted AI in healthcare. Cathy Wood sees healthcare as an underappreciated AI sector with huge potential in drug development and diagnostics.

Pelosi’s SEC filing revealed an investment in Tempus AI(TEM.US), which has since doubled. Firefly Neuroscience, Inc.  - Common Stock(AIFF.US), collaborating with NVIDIA Corporation(NVDA.US), saw its stock soar 170%.

Ark Invest’s Big Ideas 2025 report predicts AI will slash DNA sequencing and drug development costs, boost R&D ROI, and grow cancer screening and AI drug markets exponentially.

Is AI the Next Big Investment Theme in Healthcare?

At CES 2025, Goldman Sachs highlighted AI+Healthcare as a core investment theme attracting global capital.

Here are some key AI healthcare stocks in the US market:

Early Disease Detection

• Guardant Health(GH.US): Focuses on liquid biopsy and early cancer screening.
• Exact Sciences Corporation(EXAS.US): Develops AI-driven cancer screening technologies to optimize tumor detection processes.
• AVANT TECHNOLOGIES INC(AVAI.US): Focuses on the application of AI algorithms in early disease detection.

Drug Research and Discovery

• RECURSION PHARMACEUTICALS, INC.(RXRX.US): Advanced AI biotech company backed by Nvidia and Cathy Wood, using AI algorithms to analyze vast biological data to rapidly and accurately identify potential drug targets, significantly shortening early-stage drug discovery.
• Schrodinger(SDGR.US): Combines AI with physical modeling to drive software and biotechnology companies focused on drug molecule prediction.
• BioAge Labs Inc.(BIOA.US): Uses AI to gain insights into aging factors and develop new therapies.
• ABSCI CORPORATION(ABSI.US): Global leader in AI drug discovery platforms, focused on precision drug design, previously invested by Advanced Micro Devices, Inc.(AMD.US).
• AbCellera Biologics, Inc.(ABCL.US): Uses its AI-driven antibody discovery platform to search and analyze natural immune system databases to design new antibody drug candidates for partners.

Multi-Omics Sequencing

• Tempus AI(TEM.US): Dedicated to integrating AI with medical data to enhance precision medicine, with major business areas in genomic sequencing, precision healthcare, data platforms, and AI applications, attracting backing from Cathy Wood and Pelosi.
• 10x Genomics(TXG.US): Provides single-cell multi-omics solutions to facilitate precision research at the cellular level, backed by Cathy Wood.
• Illumina, Inc.(ILMN.US): The world's largest gene sequencing company, using AI algorithms to accurately predict pathogenic gene mutations, backed by Cathy Wood.
• CRISPR Therapeutics AG(CRSP.US): A leader in gene editing technology, optimizing gene therapy development processes with AI, backed by Cathy Wood.
• Beam Therapeutics(BEAM.US): Focuses on gene editing and RNA therapies in innovative drug development, backed by Cathy Wood.
• Twist Bioscience(TWST.US): A pioneer in DNA synthesis biotechnology, offering AI+antibody discovery services, backed by Cathy Wood.

Automation in Healthcare and Intelligent Robotics

• Intuitive Surgical, Inc.(ISRG.US): A global leader in minimally invasive surgery and a pioneer in robotic-assisted surgery.
• Vicarious Surgical Inc. Class A Common Stock(RBOT.US): Develops robotic surgery systems combined with virtual reality technology.

Virtual Healthcare and Remote Monitoring

• Molina Healthcare, Inc.(MOH.US): Specializes in government health insurance plans.
• Cardinal Health, Inc.(CAH.US): A global leader in pharmaceutical distribution, serving over 100,000 medical institutions and producing surgical products, with the largest radioactive pharmacy network in the US.
• Teladoc Inc(TDOC.US): A global leader in virtual healthcare services, applying AI technology to Virtual Sitter solutions to improve patient safety and resource management in hospitals.
• Stryker Corporation(SYK.US): A global leader in orthopedic and medical technologies, which acquired AI healthcare company Care.ai to reshape medical services.
• Hims & Hers Health Inc Ordinary Shares - Class A(HIMS.US): A telemedicine company integrating AI into its services to enhance personalized patient care.

Other Companies

• BUTTERFLY NETWORK INC(BFLY+.US): Combines AI to support the widespread application of mobile healthcare devices in primary care settings and deepens AI applications in medical imaging and education.
• RadNet, Inc.(RDNT.US): Implements AI solutions to aid cancer screening and neuro-radiology.
• WEAVE COMMUNICATIONS, INC.(WEAV.US): Uses AI to enhance communication efficiency in the healthcare industry.
• Nano-X Imaging Ltd.(NNOX.US): An AI-based medical imaging company, often called the "Tesla of X-ray," backed by Nvidia.
• GE HealthCare Technologies Inc Ordinary Shares(GEHC.US): Spun off from General Electric, integrating AI into medical devices and digital solutions.
• Definitive Healthcare Corp.(DH.US): Builds an AI-driven healthcare data analytics platform.
• Veeva Systems Inc Class A(VEEV.US): Provides cloud-based AI applications for the life sciences industry.
• Doximity, Inc.(DOCS.US): Known as "LinkedIn for doctors," widely applying AI to enhance user experience and platform functionality.
• Ginkgo Bioworks Holdings, Inc. Class A Common Stock(DNA.US): Uses AI-driven technology to design microorganisms to produce compounds with industrial applications.

Market Outlook: 2025 Could Be the Breakout Year for AI in Healthcare

Nvidia executive Eva-Maria Hempe highlighted three transformative impacts AI will have on healthcare by 2025:

1. Intelligent agents optimizing patient care processes.
2. Robots performing complex surgical tasks.
3. Generative AI accelerating drug development.

According to 21st Century Business Herald, the key drivers of AI commercialization in healthcare include:

• Technological Breakthroughs: Multimodal large models are creating new opportunities for AI in healthcare.
• Capital Investment: Morgan Stanley predicts that global cloud capital expenditure will reach $380 billion in 2024-2025, enhancing computing power and algorithm optimization.
• Policy & Demand Synergy: By 2030, the global population aged 65 and above is expected to reach 1 billion. Rising chronic disease cases and a growing shortage of healthcare workers are accelerating the trend of AI replacing human labor.

However, AI in healthcare still faces challenges, particularly concerning data privacy. Ensuring the security of patient information remains a critical issue for industry development.