Over the past two years, artificial intelligence has emerged as the next global trend. So far, no progress has been made in this area. Generative Artificial Intelligence Most of them have centered around the technology industry.
In particular, semiconductor specialist Nvidia Microsoft is seen as the engine that drives the AI ship at the moment. Demand for the company’s more powerful GPUs has been skyrocketing, and investors have welcomed the stock accordingly. However, many of the use cases for AI are still largely ignored by investors.
One of these reasons is how AI is creating exciting new opportunities in healthcare. Among the leading AI companies in the medical world are giants Novo Nordisk and relatively small Hippocratic artificial intelligence, But I see Eli Lilly (NYSE: LLY) As the most important opportunity. Here’s why.
Artificial Intelligence Represents a Huge Opportunity in Healthcare
AI could impact many areas along the healthcare spectrum, including service-oriented jobs like nursing, software platforms, and hardware devices.
According to Precedence Research, the global AI healthcare market is worth around $26.7 billion today. This market is expected to grow at a CAGR of 37% from 2024 to 2034 to reach $614 billion. The US AI healthcare market alone is expected to be worth $195 billion by 2034.
Which companies are using AI in healthcare?
Staffing is one of the biggest challenges facing the healthcare industry today, according to a report published by a multinational group PhilipsStaff shortages in hospitals are driving demand for more digital infrastructure in the form of automation solutions.
A startup called Hippocratic AI is working to address the labor shortage head-on by developing healthcare agents that run large language models (LLMs). The company is essentially looking to bring general AI to healthcare and is leveraging Nvidia’s Avatar Cloud Engine to do so.
Another influential company helping to bridge the gap between healthcare and AI is Danish pharmaceutical powerhouse Novo Nordiskdeveloper of diabetes and obesity treatments Ozempic and Wegovy.
Novo Nordisk is teaming up with French IT company Atos to develop a supercomputer that aims to drive research in the biotech and pharmaceutical industries. The computer will run on graphics processing units from both Nvidia and IntelIt will be stored inside one of the Digital Real Estate‘s’ data centers in Denmark.
Why do I see Lily as the best opportunity?
While the projects Novo Nordisk and Hippocratic AI are pursuing are interesting, I think there are some risks to their ambitions. For starters, Hippocratic AI is still a startup. It may be a long time before the company makes significant progress in treating patients (assuming it ever does). Moreover, I find Novo Nordisk’s supercomputing project to be quite large-scale—which makes the investment prospects somewhat unattractive.
By contrast, Eli Lilly has identified a specific opportunity to pursue and is using AI to find solutions. Specifically, it has teamed up with OpenAI, the developer of ChatGPT, to help find treatments for drug-resistant pathogens.
According to a report by MarketsandMarkets, the global market size for antimicrobial resistance will reach $7.7 billion by 2028. In addition, the World Bank expects the negative economic impacts of antimicrobial resistance to exceed $1 trillion annually by 2030.
Eli Lilly is one of the world’s leading pharmaceutical companies. Its portfolio includes successful medicines, including Verzenio, Trulicity, Taltz, Jardiance, Mujaro, and Zebound. The company is poised to make a significant impact in the $31 billion Alzheimer’s disease market.
Not only is Eli Lilly focusing on a large, underserved area of healthcare, it’s partnering with one of the biggest names in AI to tackle this challenge. I suspect it will be years before Lilly makes progress on developing a new, effective antimicrobial drug that works against bacteria that have become resistant to current treatments. Or its efforts may ultimately fail.
But if I had to pick one company that I think is most likely to succeed at the intersection of AI and healthcare, I would pick Eli Lilly. Given its long track record in drug development and commitment to innovation, I see some parallels between Nvidia’s footprint in the tech sector and Eli Lilly’s influence in healthcare.
I believe this lays the foundation for long-term success and will bring a new level of innovation beyond its clinical labs. If investors are looking for a high-growth opportunity in AI healthcare, I see Eli Lilly as a great fit.
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Adam Spatako The Motley Fool has positions in Eli Lilly, Novo Nordisk, and Nvidia. The Motley Fool has positions in and recommends Digital Realty Trust and Nvidia. The Motley Fool recommends Intel and Novo Nordisk and recommends the following options: Short-term $24 November 2024 calls on Intel. The Motley Fool has Disclosure Policy.
Why This Stock Could Be The Nvidia Of Healthcare Originally posted by The Motley Fool