Revolutionizing Healthcare Through AI
Last week, Nvidia Corp NVDA announced groundbreaking partnerships with Johnson & Johnson JNJ and General Electric Co GE Healthcare to incorporate generative AI into surgical procedures and enhance medical imaging. These collaborations were unveiled at Nvidia’s 2024 GTC AI conference, where the tech giant introduced roughly two dozen AI-powered tools catered to the medical field.
Impact on Healthcare Sector
Raj Joshi from Moody’s Ratings accentuated Nvidia’s essential role in simplifying intricate healthcare tasks, opening up a new revenue stream outside the realm of technology. Nvidia’s stock has skyrocketed nearly 100% year-to-date, as the biotech sector underscores AI’s potential in hastening drug discovery and reusing medications for novel diseases.
AI’s Role in Pharmaceutical Advancements
Arda Ural from EY Americas highlighted the tangible shift brought about by AI in the pharmaceutical, medtech, and biotech industries, moving from hopeful aspirations to concrete outcomes. By leveraging AI, the often protracted and failure-prone drug development process could witness significant enhancements, a sentiment echoed by 41% of biotech CEOs surveyed by EY.
Nvidia’s Long-term Commitment to Healthcare
During the conference, Colette Kress, Nvidia’s CFO, elaborated on the company’s dedication to the healthcare sector, emphasizing their advancements in AI for drug discovery and other medical applications. In 2023, Nvidia invested $50 million in Recursion Pharmaceuticals Inc RXRX to harness its AI technology for drug discovery, showcasing the vast potential of Nvidia’s innovations beyond gaming.
Positive Reception in the Market
Analysts are bullish on Nvidia’s future prospects, citing its innovative GPU architecture, Blackwell, and dominant position in the generative AI market. With a focus on competitive pricing and leadership in AI technology, Nvidia is set to outperform competitors like Advanced Micro Devices, Inc AMD. Analysts foresee substantial revenue and EPS growth driven by Nvidia’s pioneering initiatives in accelerated computing and AI development across multiple sectors.
Investment Opportunities
Nvidia’s stock has surged by over 261% in the past 12 months. Investors looking to capitalize on Nvidia’s success can explore options such as the VanEck Semiconductor ETF SMH and the Global X Robotics & Artificial Intelligence ETF BOTZ.
Price Action: NVDA shares were up 1.57% at $957.85 on the last check Wednesday.
Also Read: Nvidia: ‘AI Demand Pull’ To Drive 2024 Capex, Analysts See ‘Higher Software Monetization’ In AI
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Pixels Hunter on Shutterstock
