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NVIDIA's AI Speeds Up MedTech's Digital Boom: 3 Stocks in Focus

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The medical device industry is undergoing a profound change in 2025, driven by advancements in generative AI and agentic AI. At the forefront of this revolution are players like NVIDIA (NVDA - Free Report) , whose AI computing platforms are accelerating AI-powered medical applications and capturing investors’ attention.

NVIDIA’s Clara platform, powered by generative AI, is enabling real-time medical imaging enhancements and predictive diagnostics. Additionally, NVIDIA’s BioNeMo, a generative AI model tailored for life sciences, is advancing drug discovery and biomarker identification, directly impacting the development of AI-integrated medical devices. In January, NVIDIA joined industry leaders across genomic research, drug discovery, clinical trials and patient care to discuss how predictive, generative and agentic AI are driving advancements in healthcare.

Here we discuss three MedTech leaders,  Resmed (RMD - Free Report) , GE HealthCare (GEHC - Free Report) and Medtronic (MDT - Free Report) , which are embedding different forms of AI into their devices, allowing systems to autonomously analyze patient data, adjust treatment protocols and improve decision-making without constant human intervention. For instance, AI-driven insulin pumps and robotic surgical systems are becoming more adaptive, offering unprecedented precision in treatment.

MedTech Adapting to AI Faster Than Other Industries

WHO currently estimates a projected shortfall of 11 million health workers by 2030. With the healthcare sector facing one of the most severe labor shortages, AI’s role in optimizing workflows and improving patient care has become increasingly crucial.

Regulatory bodies are fast evolving to accommodate AI-enabled devices, and the FDA and European MDR are working on new frameworks for approving autonomous systems in healthcare. The introduction of predetermined change control plans (PCCP) and other frameworks allows AI models to evolve post-market while maintaining compliance, thus accelerating industry-wide adoption. As a result, AI-powered medical devices are reaching the market faster while maintaining stringent safety standards.

Apart from deals with NVDA, MedTech giants are also seen collaborating with AI leaders like Google Health and Microsoft to co-develop cutting-edge solutions. These alliances fast-track AI integration across imaging, diagnostics and device automation.

3 MedTech Stocks in Focus

Resmed: It is actively progressing in the field of utilizing digital health technology to convert big data into valuable information. The company has captured a significant foothold in the digital health market with approximately 21 billion nights of medical data in the cloud and 27 million 100% cloud-connectable medical devices sold in more than 140 countries worldwide.

ResMed aims to improve 500 million lives through better residential healthcare by 2030.  The company has been expanding AI products in AirView. It continues to expand its portfolio of AI-driven capabilities, as well as customer-facing AI products that will be launched into the market from its ecosystem.

This $34.8 billion market cap stock has a Zacks Rank #2 (Buy) and a long-term expected earnings growth rate of 16%. In 2025, Resmed is expected to record an earnings growth rate of 22.7%. Over the past 60 days, the Zacks Consensus Estimate for RMD’s 2025 earnings has moved up by 13 cents. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE HealthCare: The company is actively using artificial intelligence and machine learning to provide clinical decision support and highly personalized therapies enabled by more precise diagnostics and remote patient monitoring.  In the United States, hospitals and outpatient centers are accelerating purchases of advanced imaging systems, ultrasound devices and interventional solutions, supported by a need to upgrade aging infrastructure and enhance operational efficiency. The shift toward outpatient procedures, particularly in orthopedics, cardiology and surgical imaging, is fueling demand for C-arms, ultrasound and PET scanners.

This $39.03 billion market cap stock has a Zacks Rank #3 (Hold) and a long-term expected earnings growth rate of 6.2%. In 2025, GE Healthcare is expected to record earnings growth of 4.7%. Over the past 30 days, the Zacks Consensus Estimate for GAHC’s 2025 earnings has moved up by 4 cents.

Medtronic: It is also actively integrating AI across its portfolio to enhance clinical outcomes. The company’s GI Genius system utilizes AI to assist physicians in detecting colorectal polyps during colonoscopies. Further, the Touch Surgery Enterprise platform is an AI-powered surgical video management and analytics system. This apart, Medtronic has developed adaptive deep brain stimulation systems that use AI to tailor electrical stimulation based on real-time neural activity.

MDT, with a market capitalization of $119.6 billion, currently carries a Zacks Rank #3. It has a long-term expected earnings growth rate of 7.3%. In fiscal 2025, MDT is expected to record earnings growth of 5%. Over the past 30 days, the Zacks Consensus Estimate for Medtronic’s fiscal 2025 earnings has moved up by a penny.

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