The Artificial Intelligence Opportunity Beyond Big Tech: 3 Healthcare Stocks to Watch

Investors looking to capitalize on the rapidly growing artificial intelligence (AI) industry tend to turn toward leading tech corporations. That's understandable. Several major tech companies have produced amazing returns over the past few years thanks to their AI-related work. However, AI is changing every sector, and companies outside the tech industry will benefit from this revolution as well. With that said, let's consider three healthcare stocks worth watching that are well-positioned to cash in on AI: Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Intuitive Surgical (NASDAQ: ISRG).

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1. Eli Lilly

Developing new drugs is expensive and time-consuming. It can take over a decade and cost about $2.8 billion. AI could help change that, and Eli Lilly is working hard to make it happen. The pharmaceutical leader partnered with Nvidia (NASDAQ: NVDA) to build the industry's most powerful supercomputer. Eli Lilly could see serious benefits from this initiative. According to some research, AI could help cut the drug discovery phase -- which typically takes between three and six years -- by a year or two. That would lead to meaningful cost savings for a company like Eli Lilly, which has a large portfolio of investigational medicines. It will also help boost the company's margins while allowing it to invest more in R&D and offer drugs at lower prices to patients.

Eli Lilly is already an attractive stock to buy. The company is the market leader in weight management drugs. This area is growing rapidly, and thanks to products like Zepbound and Foundayo, Eli Lilly should successfully capitalize on it over the next few years. The drugmaker also has an attractive pipeline in this and other areas, and it has been posting impressive revenue and earnings growth for a few years now. All these are good reasons to invest in Eli Lilly, but the company's AI work could make its business even more impressive. That's why it's important to monitor Eli Lilly's progress in that area.

2. Novo Nordisk

Novo Nordisk is also looking to use AI to improve the drug discovery and development process. The company partnered with OpenAI -- one of the leaders in developing frontier AI models -- to that end. The Denmark-based drugmaker will go beyond drug discovery, though, and use AI to improve practically every aspect of its business, from manufacturing to the supply chain and more. Even so, the biggest impact of AI on the company's operations will likely be in its ability to discover and launch novel drugs faster. Novo Nordisk is especially looking to enhance its portfolio of obesity and diabetes treatments. Novo Nordisk's shares have lost significant value over the past two years as the company's sales growth within obesity has slowed, while it has also encountered several clinical setbacks.

But Novo Nordisk could still be one of the major winners as the anti-obesity market continues to expand rapidly. The company has a deep pipeline that should enable it to launch brand-new, highly effective products. One of the more promising candidates in Novo Nordisk's portfolio is called UBT251. This investigational medicine mimics the action of three separate gut hormones: GLP-1, GIP, and glucagon.

This approach could lead to significantly greater efficacy than medicines like Novo Nordisk's famous Wegovy, which target only a single hormone, GLP-1. UBT251 has already shown highly encouraging results in studies. And it's just one of several promising candidates. Novo Nordisk is likely to eventually bounce back from recent slumps and ride the weight-management tailwind. And over the long run, the company's AI work might make it an even stronger business.

3. Intuitive Surgical

Intuitive Surgical leads the robotic-assisted surgery (RAS) market. The company has been a pioneer in its niche and has had little competition since it first launched its most famous device, the da Vinci system, in 2000. Intuitive Surgical has a significant advantage, with access to a large data set from thousands of real-world procedures. The company is looking to turn this data into valuable insight by using AI.

This could help enhance the safety and effectiveness of procedures performed with its da Vinci system, leading to even better patient outcomes. The company could also use these AI-generated insights to improve its device. Intuitive Surgical is making AI an important aspect of its business moving forward, and investors should be excited about that.

True, the company has faced challenges of late. Steep tariffs have impacted its financial results, while it is facing increased competition in its niche. Even so, Intuitive Surgical continues to generate solid revenue and earnings, while procedures performed with its da Vinci system are also moving in the right direction.

And even amid mounting competition, Intuitive Surgical's wide moat -- stemming from its large data set, switching costs, and patents -- should allow it to maintain a healthy lead over its peers. The company still looks well-positioned to deliver solid long-term returns, especially as it integrates AI into its operations. That's why the stock remains a buy.

Prosper Junior Bakiny has positions in Eli Lilly, Intuitive Surgical, Novo Nordisk, and Nvidia. The Motley Fool has positions in and recommends Eli Lilly, Intuitive Surgical, Novo Nordisk, and Nvidia. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.