At Nvidia's recent GTC AI conference, the company unveiled partnerships in the healthcare sector, representing a strategic move toward expanding its revenue streams beyond tech sectors. These partnerships include collaborations with Johnson & Johnson (JNJ Quick QuoteJNJ - Free Report) for surgical applications and GE Healthcare to enhance medical imaging.

The conference also highlighted the launch of about twenty new AI-driven tools personalized for healthcare. Notably, Nvidia's transition from gaming graphics cards to healthcare technology demonstrates the company's power of vision.

Investors should also note that AI and robotics are likely to meet drive forward the next wave of healthcare innovations. According to recent findings by Grand View Research, the global AI in healthcare market reached a value of $22.4 billion in 2023. Projections suggest that this market will record a compound annual growth rate (CAGR) of 36% from 2024 to 2030.

Role of Nvidia in Healthcare

Raj Joshi, a technology analyst at Moody’s Ratings, emphasizes Nvidia's pivotal role in enabling advancements in healthcare technology, as quoted on CNBC. Nvidia's ground-breaking solutions have transformed processes that were previously time-consuming and costly.

Joshi highlights the transformative potential of Nvidia's technology across various domains within healthcare, such as biotechnology, chemical research, and drug discovery. The biotech sector, in particular, stands to benefit from AI-driven solutions, which can speed up drug discovery processes and discover new applications for existing medications.

Collaborations with companies like Recursion Pharmaceuticals and Generate: Biomedicines underscore Nvidia's role in facilitating biomedical research through advanced cloud infrastructure and AI capabilities.

Recursion leverages Nvidia's AI models to analyze biological and chemical data, contributing to the development of novel medications and treatment protocols in collaboration with industry leaders like Roche's Genentech and Schrödinger.

AI's Impact on Cost Reduction

Generative AI platforms not only expedite drug development but also yield cost-saving benefits for pharmaceutical companies. By automating back-office processes and leveraging AI-powered robotic automation, firms can lower the expenses related to offshoring operations, ultimately channelizing more resources toward drug discovery efforts.

ETFs in Focus

Nvidia’s such efforts put focus on the likes of JNJ-heavy fund iShares U.S. Pharmaceuticals ETF (IHE Quick QuoteIHE - Free Report) and Recursion Pharmaceuticals-heavy fund ARK Genomic Revolution ETF (ARKG Quick QuoteARKG - Free Report) . Investors can also play funds like iShares U.S. Medical Devices ETF (IHI Quick QuoteIHI - Free Report) , ROBO Global Healthcare Technology and Innovation ETF (HTEC Quick QuoteHTEC - Free Report) , iShares U.S. Healthcare ETF (IYH Quick QuoteIYH - Free Report) .