AI Fuels Digital Transformation in MedTech: 3 Companies to Watch
The medical device industry is undergoing a significant transformation, driven by the integration of generative and agentic AI. NVIDIA (NVDA), is at the forefront of this revolution, providing AI computing platforms that are accelerating the development of AI-powered medical applications. This shift is capturing the attention of investors.
NVIDIA’s Clara platform, powered by its generative AI capabilities, is facilitating real-time enhancements in medical imaging and predictive diagnostics. Additionally, the company’s BioNeMo, a generative AI model specifically designed for life sciences, is contributing to advancements in drug discovery and biomarker identification. This progress directly impacts the development of AI-integrated medical devices. In January, NVIDIA brought together industry leaders across genomics, drug discovery, clinical trials, and patient care to discuss how AI is driving improvements in healthcare.
This article spotlights three key MedTech companies: ResMed (RMD), GE HealthCare (GEHC), and Medtronic (MDT). These companies are integrating different forms of AI into their devices, enabling systems to autonomously analyze patient data, adjust treatment protocols, and enhance decision-making processes without continuous human involvement. Examples of these advancements include AI-driven insulin pumps and robotic surgical systems, which are becoming more adaptive and offer increased precision in treatments.
MedTech Adapting to AI Faster
The healthcare sector is facing a significant labor shortage; the World Health Organization (WHO) estimates a potential deficit of 11 million health workers by 2030. In this environment, AI is playing a crucial role in optimizing workflows and enhancing patient care.
Regulatory bodies are rapidly evolving to accommodate AI-enabled devices. The FDA and European MDR are developing new frameworks for approving autonomous healthcare systems. These frameworks, including predetermined change control plans (PCCP), allow AI models to improve after market launch while maintaining compliance, thereby accelerating the industry-wide adoption of these technologies. As a result, AI-powered medical devices are reaching the market more efficiently while meeting rigorous safety standards.
Beyond partnerships with NVIDIA, major MedTech companies are forming alliances with AI leaders like Google Health and Microsoft to co-develop advanced solutions. These collaborations accelerate the integration of AI across various areas, including imaging, diagnostics, and device automation.
3 MedTech Stocks in Focus
ResMed:
ResMed is actively investing in digital health technology, turning large datasets into valuable information. The company has established a significant presence in the digital health market, including approximately 21 billion nights of medical data stored in the cloud and 27 million cloud-connectable medical devices in over 140 countries.
ResMed aims to enhance the lives of 500 million people through improved residential healthcare by 2030. The company continues to expand its portfolio of AI-driven capabilities and customer-facing AI products, including advancements in the AirView system. This $34.8 billion market cap stock holds a Zacks Rank #2 (Buy) and has a long-term expected earnings growth rate of 16%. In 2025, ResMed is predicted to record an earnings growth rate of 22.7%. Over the past two months, the Zacks Consensus Estimate for RMD’s 2025 earnings has increased by 13 cents. You can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE HealthCare:
GE HealthCare is actively using artificial intelligence and machine learning to provide clinical decision support and highly personalized therapies. This is achieved through more precise diagnostics and remote patient monitoring. In the United States, hospitals and outpatient centers are increasing their purchases of advanced imaging systems, ultrasound devices, and interventional solutions. This demand is driven by the need to modernize aging infrastructure and enhance operational efficiency. The shift towards outpatient procedures, especially in orthopedics, cardiology, and surgical imaging, is boosting the demand for C-arms, ultrasound, and PET scanners.
This $39.03 billion market cap stock has a Zacks Rank #3 (Hold) and a long-term expected earnings growth rate of 6.2%. In 2025, GE HealthCare is expected to record earnings growth of 4.7%. Over the past month, the Zacks Consensus Estimate for GAHC’s 2025 earnings has increased by 4 cents.
Medtronic:
Medtronic is actively integrating AI across its product portfolio to improve clinical outcomes. One example is the company’s GI Genius system, which uses AI to aid physicians in detecting colorectal polyps during colonoscopies. Additionally, the Touch Surgery Enterprise platform is an AI-powered surgical video management and analytics system. Furthermore, Medtronic has developed adaptive deep brain stimulation systems that use AI to tailor electrical stimulation based on real-time neural activity.
MDT, with a market capitalization of $119.6 billion, currently holds a Zacks Rank #3. It has a long-term expected earnings growth rate of 7.3%. In fiscal 2025, MDT is expected to record an earnings growth of 5%. Over the past month, the Zacks Consensus Estimate for Medtronic’s fiscal 2025 earnings has moved up by a penny.
