Artificial intelligence (AI) is a hot investment theme today, with investors flocking to shares of companies that are developing the technology or using it to improve their operations. In fact, AI stocks have helped drive the market gains we've seen in recent months, pushing the S&P 500 to a record high -- and confirming that we are indeed in a bull market.
AI has become such a big deal because it could transform our routines, save companies time and money, help scientists make new discoveries -- and more. Many industries are likely to benefit. But my prediction is that healthcare stocks could become the biggest winners of all. Here's why.
Image source: Getty Images.
Nvidia is optimistic about AI in healthcare
First of all, it's important to note that a key player in the AI landscape -- Nvidia(NASDAQ: NVDA) -- also is highly optimistic about AI in this sector. Chief Executive Officer Jensen Huang said at the company's GTC conference last week that AI will have the most impact in healthcare. At the same time, Nvidia has launched several new services to help healthcare companies advance their AI projects.
Second, market forecasts indicate tremendous growth for AI in the healthcare market this decade. The Statista chart below shows the market is set to soar to more than $187 billion in 2030. That's an 800% gain from today.
Data source: Statista.
Now, let's consider why Huang and analysts are so bullish about AI in the healthcare environment. The technology could be transformative in many ways. It could solve one of drugmakers' biggest problems: the lengthy process of bringing a potential product from drawing board to market. That's because AI can help researchers more quickly identify promising drug candidates -- saving time and resulting in better products.
AI already is also helping medical device companies improve outcomes. For example, Medtronic (NYSE: MDT) has developed AI-powered devices to plan spinal surgery and detect cancerous polyps in gastroenterology procedures.
How can investors benefit from this exciting market? By buying shares of healthcare companies that are growing their presence in the AI space -- and holding on to these stocks for the long term.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Medtronic. The Motley Fool has a disclosure policy.
