AI Bubble or Sustainable Growth? Here Are 2 Healthcare Companies Harnessing AI for the Long Term.

Artificial intelligence chip giant Nvidia has grown to be the largest component of the S&P 500, as Wall Street jumps on the AI bandwagon. There's no question that AI is going to be a world-changing technology. However, it isn't just the technology sector that investors should consider.

Bristol Myers Squibb (NYSE: BMY) and Intuitive Surgical (NASDAQ: ISRG) are healthcare leaders that are also using AI. And there could be more advances from here for both the companies and their shareholders.

Bristol Myers Squibb teams up with Microsoft

Bristol Myers Squibb is one of the world's largest pharmaceutical companies. Its primary focus is on cardiovascular, cancer, and immune disorders. The company just announced a partnership with Microsoft (NASDAQ: MSFT), the third-largest component of the S&P 500 index.

Image source: Getty Images.

Microsoft's imaging technology is used in 80% of U.S. hospitals. By pairing these systems with Bristol Myers Squibb's expertise in oncology and drug delivery, the two companies hope to create an AI-enabled workflow that leads to earlier diagnosis of lung cancer and a clearer path toward treatment.

In some ways, this is a small event, but it highlights the value AI can offer in assisting medical professionals in identifying and treating illness. And if it is successful, it seems highly likely that Bristol Myers Squibb will attempt to expand the effort to additional indications.

That said, while Nvidia is a market darling right now, Bristol Myers Squibb isn't. It has a lofty 4.6% dividend yield and a below-market price-to-earnings ratio of 18. If you are a long-term income investor, this drugmaker's AI push could be the buy signal you've been waiting for.

Intuitive Surgical is just getting started

Intuitive Surgical is a stock that only aggressive growth investors should consider right now. The P/E ratio is a lofty 70. However, the company is still growing very quickly, noting that the number of da Vinci surgical robots installed in 2025 was up roughly 13% from 2024. Meanwhile, the number of surgeries using one of the company's robots rose 19%. So not only is there very strong demand for the robots, but there's even stronger end-market demand for robotic surgery.

In late 2025, Intuitive Surgical got FDA approval to incorporate real-time AI imaging technology into its robots to assist with lung surgery. The benefit for the medical professional is that it helps address the very real fact that lungs are always moving. Pre-surgery images can be out of date before they are used. Long-term, it isn't hard to imagine an AI surgeon handling the entire surgery, which could lead to even more growth for Intuitive Surgical.

The future is wide open

While it is too soon to know where AI will take the world, it is clear that companies are quickly learning to use the technology to improve their products and services. Bristol Myers Squibb and Intuitive Surgical are concrete examples that you can buy today if you want to get ahead of the AI curve in the healthcare sector.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.