3 Generative AI-Based MedTech Stocks to Keep an Eye On

Core Insights - The MedTech industry is increasingly integrating Generative AI (GenAI) to enhance diagnostic precision and optimize treatment strategies, marking a significant shift from traditional methods [1][3][4] Group 1: Industry Overview - The Generative AI market is projected to grow from $40 billion in 2022 to$1.3 trillion by 2032, indicating a substantial expansion in the sector [4] - GenAI is being utilized across various healthcare fields, including drug discovery, clinical trials, and administrative tasks, allowing companies to better meet patient needs and capture market share [5] Group 2: Key Companies - Zimmer Biomet (ZBH) has developed AI-based solutions like WalkAI for personalized outcome predictions and the Omni Suite for optimizing surgical workflows [10][11] - GE HealthCare (GEHC) has been recognized for its AI-enabled medical devices, with 72 FDA clearances, and is enhancing its ultrasound portfolio with AI applications [13][14] - Medtronic (MDT) is integrating AI into its surgical platforms and has introduced innovations like ColonPRO software for improved polyp detection [16][17] Group 3: Financial Performance - ZBH is expected to see a 7.3% year-over-year increase in 2024 earnings, supported by a 4.9% revenue improvement [12] - GEHC anticipates an 8.7% year-over-year increase in 2024 earnings, driven by a 3% revenue growth [15] - MDT is projected to achieve a 4.6% year-over-year growth in fiscal 2025 earnings, with a 3.2% revenue increase [18]