4 Medical Devices Behemoths to Buy Amid Extensive AI Applications

Rising demand for precision and personalized medicine has significantly augmented the need for artificial intelligence (AI)-enabled medical devices to deliver highly individualized diagnostics and treatments.

At this stage, it should be fruitful to invest in giant medical stocks focusing rigorously on AI applications. Four such companies are: Boston Scientific Corp. BSX, Johnson & Johnson JNJ, GE HealthCare Technologies Inc. GEHC and Tempus AI Inc. TEM. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Increasing AI Applications in Medical Devices

Globally, generative artificial intelligence and agentic AI are increasingly being integrated into medical devices, transforming both clinical workflows and patient care. AI algorithms can analyze patient-specific imaging data or genetic profiles to guide the design of implants, surgical plans, or therapeutic regimens, improving patient outcomes.

Generative AI is primarily being used for content creation and design optimization within the medical device space. Generative AI powers real-time clinical documentation tools embedded within diagnostic devices. 

Agentic AI enables medical devices to act autonomously and make decisions based on real-time data. Agentic AI also supports predictive maintenance in connected medical equipment, such as MRIs and ventilators.

Boston Scientific Corp.

Boston Scientific is seeing strength across its target markets despite macroeconomic issues, primarily tariff tensions and related cost inflation. BSX has been investing in AI to support its devices and improve procedural outcomes.

Strong demand for its MedSurg and Cardiovascular lines, traction in the United States and internationally for its next-generation WATCHMAN FLX and FLX Pro are important drivers. BSX’s HeartLogic is a heart failure diagnostic that utilizes AI to detect worsening heart failure in patients with implantable cardioverter-defibrillators (ICDs) and cardiac resynchronization therapy-defibrillators (CRT-Ds). 

The Rhythm AI module in the Rhythmia HDx mapping system can automatically interpret electroanatomical maps to identify arrhythmia circuits, enabling electrophysiologists to target ablation therapy more effectively. BSX’s Coronary Advanced Analysis software uses AI to analyze optical coherence tomography images to characterize plaque.

Boston Scientific has an expected revenue and earnings growth rate of 18.3% and 18.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.4% in the last 30 days.

Johnson & Johnson

Johnson & Johnson boast a major MedTech division (Johnson & Johnson MedTech) focused on medical devices and diagnostics. JNJ applies AI technologies for surgical robotics, digital surgery analytics and imaging. The company has developed an AI-enabled ecosystem called Ottava, its next-gen robotic surgery platform. 

JNJ has also developed the Caresurgical/VELYS digital surgery systems, which use data and AI for procedure planning. Its Polyphonic Digital Ecosystem connects operating rooms, allowing surgeons to share live video and data with remote peers. AI in this system helps identify significant events in the surgery video feed for discussion.

Johnson & Johnson has an expected revenue and earnings growth rate of 5.2% and 8.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 30 days. 

GE HealthCare Technologies 

GE HealthCare Technologies is experiencing strong market demand across the U.S. and global healthcare sectors, driven by rising procedure volumes, hospital capital investments, and increasing adoption of AI-powered imaging and diagnostics. AI is central to GEHC’s digital strategy, which focuses on its precision care framework.

GEHC has launched CleaRecon DL — an AI-driven solution that enhances cone-beam computed tomography image quality. GEHC’s Invenia Automated Breast Ultrasound Premium, the latest 3D ultrasound, offers advanced AI and innovative features to drive faster, reproducible supplemental screening and streamline exam readings on patients with dense breasts.

GE HealthCare Technologies has an expected revenue and earnings growth rate of 3.5% and 0.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.7% over the last 30 days. 

Tempus AI Inc.

Tempus AI is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. TEM provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care, and parallel facilitates for the discovery, development and delivery of optimal therapeutics.

TEM’s AI applications include analyzing patient data, generating clinical notes, identifying care gaps, and assisting with treatment decisions, particularly in oncology and cardiology. TEM integrates data including phenotypic, morphologic, and molecular data from different sources to provide a more comprehensive view of a patient's condition.

Tempus AI has an expected revenue and earnings growth rate of 81.1% and 55.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 30 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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