Artificial intelligence stocks are expected to continue to show strong growth in 2025. Much attention is paid to the opportunities provided by the construction of data centers. But one practical area where AI has made significant strides is healthcare.
Some investors’ primary focus is on-device artificial intelligence, which can be seen in smart devices and surgical assistant robots. But there’s much more going on than that. Generative AI is being used to make healthcare more efficient. This not only helps reduce staff burnout, but also opens the door to personalized medicine.
This means companies will be spending money to expand their AI capabilities in this area. Many profitable companies will be able to pass on some of this money to shareholders in the form of dividends and/or capital gains. Here are three attractive health care stocks you should watch in 2025.
Google Health makes Alphabet a great choice
Alphabet stock forecast for today
$206.69
Growth potential 8.08%Moderate purchase
Based on ratings from 42 analysts
| High forecast | $240.00 |
|---|---|
| Average forecast | $206.69 |
| Low forecast | $165.00 |
Alphabet stock forecast details
If you’re looking for growth stocks in 2025, the Magnificent Seven stocks should be on your short list. However, in 2024, it became clear that investors were looking for value even among leading technology stocks.
The same will happen in 2025, so Alphabet Inc. NASDAQ: GOOGLElooks like a purchase. The company is practically synonymous with artificial intelligence, and its Google Health initiative is helping it make strides in the healthcare sector.
In addition to bringing artificial intelligence to ultrasound and breast cancer screening tools, Alphabet has a series of large language models (LLMs) emerging from the launch of Med-PaLM 2 in 2023. And for developers, Alphabet launched its Open Health Stack to help developers “accelerate the creation of digital health solutions.”
However, with shares falling to around $196, is GOOGL stock worth buying? Analysts suggest this is true. While the $206.69 consensus price leaves only about 7% upside for the stock, MarketBeat analyst forecasts show some significantly higher targets, includingJPMorgan Chase & Co. New York Stock Exchange: JPM which gives a target price of $232.
Medtronic uses artificial intelligence to make healthcare more efficient
Medtronic stock forecast today
$95.00
Growth potential 19.33%Hold
Based on ratings from 17 analysts
| High forecast | $109.00 |
|---|---|
| Average forecast | $95.00 |
| Low forecast | $83.00 |
Medtronic stock forecast details
The newly created Department of Government Effectiveness (DOGE) is on people’s minds, but the waste and inefficiency of the healthcare system has become an obsession for many people. Medtronic PLC New York Stock Exchange: MDT for many years.
The medical device company is perhaps best known for its use of artificial intelligence in smart devices such as robotic platforms for surgical assistants, colonoscopy and endoscopy systems, and an insulin pen that integrates glucose sensor data for patients with type 1 diabetes who require several daily injections.
The company is also making progress in using artificial intelligence to analyze large amounts of data to help doctors diagnose and predict outcomes. In doing so, it takes into account the growing need for personalized healthcare in the treatment of diseases.
MDT shares fell about 11.5% in the three months ended Dec. 30. This may be partly due to concerns that interest rates will remain high for a long time. However, this creates a good opportunity to buy not only the leadership in artificial intelligence, but also a dividend that has grown for 48 years in a row.
Buy Stryker for dividends now and growth later
Stryker stock forecast today
$405.80
Growth potential 12.02%Moderate purchase
Based on ratings from 20 analysts
| High forecast | $450.00 |
|---|---|
| Average forecast | $405.80 |
| Low forecast | $360.00 |
Stryker Stock Forecast Details
Stryker Company. New York Stock Exchange: NOis a competitor of Medtronic. Not surprisingly, many of the company’s innovations in artificial intelligence compare favorably with those of Medtronic and other companies in the sector.
However, one area where Stryker can stand out is its dividend. The yield is not particularly impressive – just 0.93% (Medtronic has a yield of 3.52%). But profitability isn’t everything. Stryker’s payout ratio is more than 50% lower than Medtronic’s, and the company has increased its dividend by an average of 9% per year over the past three years. Additionally, the company has increased its dividend for 32 consecutive years.
SLPK shares are up about 20% in 2024, including a drop of about 8% in the final month of the year. This puts the stock about 12% below analysts’ consensus target.
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