Healthcare AI stocks are on the rise with the introduction of AI-based solutions. These solutions allow companies to improve operations and cut costs using artificial intelligence.

AI technology is being used in many ways in healthcare. It can improve diagnosis, reduce medical errors, and improve patient outcomes. As AI becomes more prevalent in healthcare, we must discuss how this technology can positively impact our lives and society.

In the future, AI can help businesses and individuals make more informed decisions about their health. AI is being used for health care in different ways: data collection, predictive analytics, machine learning, decision support systems, and clinical decision support systems.

The global healthcare business is also seeing massive growth in IT spending, which will help it strategically plan and optimize its work; according to a research report from MarketsandMarkets, the global healthcare IT market is expected to reach $974.5 billion by 2027 from an estimated $394.6 billion in 2022, growing at a CAGR of 19.8% from 2022 to 2027.

As a result, the combination of growing demand for healthcare and the simultaneous rise of AI is creating unique investment opportunities. Healthcare AI stocks are offering a window into this world. And savvy investors understand the situation and are playing this to their advantage.

If you want to do the same, the time to strike is now. Here are four quality healthcare AI stocks for your consideration.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is a company that has produced graphics cards for more than 20 years. It is known for its innovations in computer graphics, gaming, and data center.

Nvidia’s latest innovation is artificial intelligence. Nvidia has been working on AI for several years and has released a series of products designed to make AI accessible to businesses and consumers alike.

Nvidia’s first foray into AI was the development of its CUDA platform, which allows developers to use their GPU (graphics processing unit) to create AI software that can run on any device with an Nvidia GPU.

In addition, Nvidia has already significantly impacted the healthcare industry with its use of AI. Nvidia is used only to design processors and graphics cards.

However, it is now creating AI chips for healthcare and supercomputer devices. The change shows that Nvidia recognizes the evolving need for AI in many fields.

Nvidia is also making an impact in healthcare by fostering AI startups. Under the Nvidia Inception umbrella, the tech giant is helping foster more than 13,000 technology startups. Among them are over 1,000 healthcare startups. These healthcare startups will ensure that Nvidia stays ahead of the competition in this fast-growing field.

Finally, Nvidia announced it is collaborating with other cloud service providers to create a method for healthcare companies to use its launch AI sessions. This should be a bonus for healthcare companies that can’t rely on Nvidia’s AI platform.

GE Healthcare (GEHC)

GE Healthcare Technologies (NASDAQ:GEHC) provides medical imaging, diagnostic care, medical devices, pharmaceuticals, healthcare IT solutions, and medical research services.

The global medical technology company began trading on the stock market in January after multinational conglomerate General Electric (NYSE:GE) spun off its division.

GE Healthcare has four segments: imaging, ultrasound, patient care solutions, and pharmaceutical diagnostics.

The company uses artificial intelligence to help its healthcare providers conduct research and make better decisions. Its Edison platform helps the company better understand its customers’ needs and provide appropriate solutions.

Edison uses big data analytics to provide insights into how people use GE Healthcare’s products and how they can improve them. They use this insight to make changes that will lead to better care for patients and greater profits for GE Healthcare.

In January, GE Healthcare presented healthy financial results for the full year and fourth quarter of 2022.

Full-year revenue reached $18.3 billion, up 4% due to growth in its imaging and ultrasound segments. Net income for the company was $1.96 billion, down from $2.2 billion in 2021, but that’s mostly because of planned increased research and development spending, foreign exchange rates, and inflation.

In the fourth quarter, the figures become a lot better. Revenue reached $4.9 billion, up 8% year over year, while net income fell by just 1.7% over the same period in 2021. Notably, cash-flow growth is strong, up $436 million to finish the quarter at $987 million.

GE Healthcare is new to the table, but it is already profitable. And the brand recognition of being under GE’s umbrella will help it sell its software and products more easily, making it one of the top healthcare AI stocks.

Medtronic (MDT)

Medtronic (NYSE:MDT) is the largest producer of medical devices in the world. It is headquartered in Minneapolis, Minnesota, and has offices worldwide.

It has been recognized for its innovative products, such as the Medtronic Minimed, the first FDA-approved portable insulin pump.

In recent years, Medtronic has been increasing its investments in AI to help healthcare industries catch up with other sectors.

The intelligent endoscopy module, GI Genius, is used for increased adenoma detection. Recent studies have shown that it can also identify early lesions that progress into colorectal cancers. The only AI system approved for performing colonoscopies is GI Genius.

Medtronic recently posted healthy third-quarter fiscal 2023 financial results, which beat estimates. It reported strong Q3 performance in cardiovascular and neuroscience portfolios, improved cardiac & neurology business results in Diabetes markets outside the US, and enhanced product availability in certain businesses.

In addition, Medtronic bumped up the lower end of its 2023 non-GAAP EPS outlook. It now expects EPS in the range of $5.28 to $5.30 versus previous guidance of $5.25 to $5.30.

Shares of the medical device company have been declining recently. During the last 12 months, their value has dropped by more than 23%. As a result, this one looks very attractive for those looking for attractive valuations among healthcare AI stocks.

Microsoft Corporation (MSFT)

Microsoft (NASDAQ:MSFT) is a company that has been around for decades. It has a history of innovation and is one of the leading companies in the tech industry.

Microsoft is one of the leading companies in the tech industry. Bill Gates and Paul Allen founded it in 1975, and it has a history of innovation. Microsoft is best known for its operating system, Windows, which powers just over 74% of personal computers worldwide.

Although Microsoft is one of the most popular technology companies, it is also one of the most innovative. The software giant is constantly innovating to stay ahead of the competition.

Most recently, investors and analysts have been salivated to invest in Microsoft due to its involvement with ChatGPT-maker OpenAI.

Reportedly, the tech giant is investing $10 billion in OpenAI as part of a making a “multiyear, multibillion-dollar” investment in the innovative AI company.

On the healthcare front, Microsoft is actively involved in the healthcare space. Over the past few years, Microsoft and Novartis (NYSE:NVS) partnered for AI-backed drug discovery and development. Microsoft has also partnered with AstraZeneca (NASDAQ:AZN) to advance AI in healthcare.

In summary, Microsoft is a great investment because it has a wide moat. It is one of the few companies with a strong brand and can protect its position in the market. In addition, a sizeable war chest of over $100 billion in cash reserves gives it tremendous power to pursue its AI ambitions.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.