Buy and Hold 2 Artificial Intelligence (AI) Stocks with Great Long-Term Potential in the Healthcare Sector

Artificial Intelligence (AI) is attracting investors as it has the potential to transform many industries, with the greatest impact likely to be in the healthcare sector. This is because the technology could solve the number one problem in drug development, which is the long time it takes for a drug candidate to go from the drawing board to commercialization. It could also lead to better medicines and therapeutic equipment, which could improve patient outcomes.

All of this means that the earnings of leading companies are likely to grow significantly over time. Furthermore, according to a study by Markets and Markets, the AI market for healthcare is expected to grow at a compound annual growth rate of 48%, reaching $148 billion by 2029, which means we're just getting started on this exciting story. Ready to get in on the ground floor of one of the most promising companies? Then consider buying and holding these two healthcare AI stocks with huge long-term potential.

1. Moderna

Moderna (NASDAQ Resonance: MRNA)s stock price soared in the early days of the pandemic as the company commercialized its coronavirus vaccine, generating billions of dollars in revenue. Now, demand for the vaccine is declining, and while the product may still generate recurring revenue during the swing season, it won't return to the levels we've seen in the past. This has investors worried about the future of the biotech company.

But there are reasons to be optimistic about this innovative company, which not only has many late-stage drug candidates, but also prioritizes artificial intelligence. The company already uses the technology in vaccine development, speeding up some key steps for researchers. Last year, the company announced a partnership withInternational Business Machines, Inc.The company has also entered into an agreement to utilize the company's technology to add momentum to its research efforts.

For example, the company is using IBM's base model, MolFormer, to predict the properties of molecules in order to develop better mRNA medicines faster. This is positive, as it will enable faster time-to-market and provide a new revenue stream for Moderna.

Moderna is applying artificial intelligence across the company to improve efficiency and business performance. Stéphane Bancel, the company's chief executive officer, said at an investor event last year that the company will "embrace this new technology to change the way we work at Moderna, across everything we do.

As a result, Moderna's stock price may be in the doldrums right now, but over time it will not only recover, but also soar, as AI helps drive the company toward its goals.

2. Medtronic

Medtronic (brand) (NYSE: MDT)is a medical device giant that sells products in the diabetes, cardiovascular, medical-surgical and neuroscience markets. Thanks to its deep product line, the company continues to gain new revenue opportunities - which has helped it win about 130 product approvals in key regions over the past year.

Over time, the medical equipment giant has seen its earnings grow, but now it could be entering a whole new growth spurt thanks to efforts to streamline its business, improve its rates, and get ahead of the artificial intelligence market in the healthcare space.

Medtronic has received approvals for five AI products, ranging from the GI Genius Intelligent Endoscopy System to the MiniMed 780G System for diabetes management. These and Medtronic's other AI products can lead to better outcomes for patients and, in some cases, help surgeons maximize their productivity. This means that over time, these products will become increasingly popular with patients and hospitals alike.

Medtronic has established an AI center of excellence to accelerate AI innovation across the company - a technology that the early adopter of AI says is even key to personalized medicine, which could change the rules of the game in healthcare.

As a result, we have reason to believe that Medtronic, a profitable company with solid long-term performance, could be a frontrunner in the AI race. Because of this, Medtronic is a buy-and-hold stock at its current valuation of 15 times forward earnings estimates.

Should you invest $1,000 in Moderna now?

Before buying Moderna stock, consider the following:

Motley Fool Stock AdvisorA team of analysts have just selected what they believe to be the most popular analysts in the world at the moment.-est (superlative suffix)The name of the person is suitable for the investor to purchase10Only ...... and Moderna is not one of them. The 10 stocks that made the list could generate huge returns in the coming years.

Consider April 15, 2005Nvidia) on the list at ...... If you invest $1,000 at the time of our recommendation, theYou will have 540,321dollar! * *The

Stock AdvisorProvides investors with an easy-to-follow blueprint for success, including guidance on building an investment team, regular updates from analysts and two new stock picks each month. Stock Advisor The rate of return for the service since 2002 has been the same as that for the S&P 500 index, but the rate of return for the service has been the same as that for the S&P 500 index.quadruple*.

View 10 Gift Certificates

*Stock Advisory Rates as of April 15, 2024

Adria Cimino does not own any of these stocks.The Motley Fool recommends International Business Machines, Medtronic and Moderna.The Motley Fool has a disclosure policy.

Buy and Hold 2 Artificial Intelligence (AI) Stocks in Healthcare with Great Long-Term Potential was originally published by The Motley Fool.