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Tap Billion-Dollar AI Opportunity in Oncology: Stocks in the Spotlight
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Artificial Intelligence (AI) and Machine Learning (ML) play a pivotal role in precision oncology, analyzing vast datasets, identifying patterns and aiding in informed decision-making. Within this domain, digital pathology plays a crucial role, leveraging AI algorithms to detect cancerous cells, classify tumor subtypes and enhance patient outcomes. Among its key focus areas, AI-powered automated image analysis and biomarker identification stand out as major advancements.
AI/ML in precision oncology has garnered even more attention, with the National Institutes of Health (NIH) currently evaluating the PRIMED-AI initiative, aimed at developing a coordinated effort across various NIH institutes to link AI/ML for enhanced disease diagnosis and treatment. Additionally, the organization has developed AI models to predict cancer patients' responses to therapies.
With global AI in the oncology market valued at $1.92 billion in 2023 and expected to witness a CAGR of 29.4%, reaching $11.52 billion by 2030, investor interest in this sector is on the rise. Healthcare and AI-driven companies, such as BioXcel Therapeutics (BTAI - Free Report) , Tempus AI (TEM - Free Report) , and Quest Diagnostics (DGX - Free Report) , are attracting significant attention these days. Let us delve deeper.
AI Companies Leading the Charge
The rising instances of cancer worldwide, combined with technological advancements, including continuous innovations in AI/ML that target diagnostic accuracy and advanced therapeutic strategies, as well as an increasing demand for personalized medicine, are driving the adoption of AI-driven treatment options in this space.
NVIDIA (NVDA - Free Report) has already established itself as a crucial player in this niche. NVIDIA’s powerful GPUs are the backbone of AI models used in imaging, personalized medicine and drug development. Palantir (PLTR - Free Report) , known for its expertise in big data analytics, has made significant breakthroughs with its Foundry platform, which enables organizations to build a complete 360-degree view of the experimental, clinical and analytical work taking place across a laboratory or discovery group.
NVIDIA and Palantir are not alone in this AI race in healthcare. Tech giant Google’s DeepMind has entered into medicine with the announcement that its program AlphaFold is able to accurately predict the shape of proteins. IBM Watson Health and Microsoft’s AI-driven initiatives too are shaping the competitive landscape.
It goes without saying that as AI models evolve, their applications in early cancer detection, patient stratification and real-time treatment optimization will only expand, transforming how cancer is diagnosed and treated. Accordingly, investing in AI-driven precision oncology companies presents a compelling long-term opportunity for investors.
AI-Driven Precision Oncology Stocks on Our Radar
BioXcel: The company expedites the discovery and development of new indications for existing late-stage drug candidates and/or approved drugs by leveraging NovareAI, its proprietary AI platform. NovareAI enables BioXcel to reduce therapeutic development costs and potentially accelerate timelines while improving the success rate of bringing new treatment options.
This Zacks Rank #2 (Buy) biopharmaceutical stock is an attractive investment option right now, with its long-term expected earnings growth rate being at an impressive level of 37.9%. The Zacks Consensus Estimate for BioXcel’s 2025 revenues and earnings indicates growth of 71.2% and 33.1%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tempus AI: The company leverages AI to enhance precision medicine, particularly in genomics and oncology. In oncology, the Tempus algorithmic test platform leverages its molecular and clinical database, CAP/CLIA lab and clinician network to develop tests that help inform the treatment of cancer patients. Further, the company’s Tempus One is the first generative AI-enabled clinical assistant that provides access to patient insights directly.
This Zacks Rank #3 (Hold) AI-powered precision medicine company is gaining investors' attention due to its cutting-edge portfolio and strong pipeline. Its long-term expected earnings growth rate is at an impressive level of 42%. The Zacks Consensus Estimate for Tempus AI’s 2025 revenues and earnings indicates growth of 78.4% and 62.3%, respectively.
Quest Diagnostics: As part of its broader strategy to drive operational improvements across the business, Quest Diagnostics strategically deploys automation and AI to improve quality, service, efficiency and workforce experience. In 2024, Quest Diagnostics acquired select assets of PathAI Diagnostics, a leading provider of AI-powered pathology services. This acquisition is focused on accelerating the adoption of digital and AI pathology innovations in cancer diagnostics. PathAI-driven pathology panel PathExplore offers more than 600 quantitative human interpretable features (HIFs) and is gaining market acceptance.
This Zacks Rank #3 prominent diagnostic testing company has a long-term expected earnings growth rate of 8.2%. The Zacks Consensus Estimate for Quest Diagnostics’ 2025 revenues and earnings indicates growth of 9.1% and 8.6%, respectively.
Image: Bigstock
Tap Billion-Dollar AI Opportunity in Oncology: Stocks in the Spotlight
Artificial Intelligence (AI) and Machine Learning (ML) play a pivotal role in precision oncology, analyzing vast datasets, identifying patterns and aiding in informed decision-making. Within this domain, digital pathology plays a crucial role, leveraging AI algorithms to detect cancerous cells, classify tumor subtypes and enhance patient outcomes. Among its key focus areas, AI-powered automated image analysis and biomarker identification stand out as major advancements.
AI/ML in precision oncology has garnered even more attention, with the National Institutes of Health (NIH) currently evaluating the PRIMED-AI initiative, aimed at developing a coordinated effort across various NIH institutes to link AI/ML for enhanced disease diagnosis and treatment. Additionally, the organization has developed AI models to predict cancer patients' responses to therapies.
With global AI in the oncology market valued at $1.92 billion in 2023 and expected to witness a CAGR of 29.4%, reaching $11.52 billion by 2030, investor interest in this sector is on the rise. Healthcare and AI-driven companies, such as BioXcel Therapeutics (BTAI - Free Report) , Tempus AI (TEM - Free Report) , and Quest Diagnostics (DGX - Free Report) , are attracting significant attention these days. Let us delve deeper.
AI Companies Leading the Charge
The rising instances of cancer worldwide, combined with technological advancements, including continuous innovations in AI/ML that target diagnostic accuracy and advanced therapeutic strategies, as well as an increasing demand for personalized medicine, are driving the adoption of AI-driven treatment options in this space.
NVIDIA (NVDA - Free Report) has already established itself as a crucial player in this niche. NVIDIA’s powerful GPUs are the backbone of AI models used in imaging, personalized medicine and drug development. Palantir (PLTR - Free Report) , known for its expertise in big data analytics, has made significant breakthroughs with its Foundry platform, which enables organizations to build a complete 360-degree view of the experimental, clinical and analytical work taking place across a laboratory or discovery group.
NVIDIA and Palantir are not alone in this AI race in healthcare. Tech giant Google’s DeepMind has entered into medicine with the announcement that its program AlphaFold is able to accurately predict the shape of proteins. IBM Watson Health and Microsoft’s AI-driven initiatives too are shaping the competitive landscape.
It goes without saying that as AI models evolve, their applications in early cancer detection, patient stratification and real-time treatment optimization will only expand, transforming how cancer is diagnosed and treated. Accordingly, investing in AI-driven precision oncology companies presents a compelling long-term opportunity for investors.
AI-Driven Precision Oncology Stocks on Our Radar
BioXcel: The company expedites the discovery and development of new indications for existing late-stage drug candidates and/or approved drugs by leveraging NovareAI, its proprietary AI platform. NovareAI enables BioXcel to reduce therapeutic development costs and potentially accelerate timelines while improving the success rate of bringing new treatment options.
This Zacks Rank #2 (Buy) biopharmaceutical stock is an attractive investment option right now, with its long-term expected earnings growth rate being at an impressive level of 37.9%. The Zacks Consensus Estimate for BioXcel’s 2025 revenues and earnings indicates growth of 71.2% and 33.1%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BioXcel Therapeutics, Inc. Price
BioXcel Therapeutics, Inc. price | BioXcel Therapeutics, Inc. Quote
Tempus AI: The company leverages AI to enhance precision medicine, particularly in genomics and oncology. In oncology, the Tempus algorithmic test platform leverages its molecular and clinical database, CAP/CLIA lab and clinician network to develop tests that help inform the treatment of cancer patients. Further, the company’s Tempus One is the first generative AI-enabled clinical assistant that provides access to patient insights directly.
This Zacks Rank #3 (Hold) AI-powered precision medicine company is gaining investors' attention due to its cutting-edge portfolio and strong pipeline. Its long-term expected earnings growth rate is at an impressive level of 42%. The Zacks Consensus Estimate for Tempus AI’s 2025 revenues and earnings indicates growth of 78.4% and 62.3%, respectively.
Tempus AI, Inc. Price
Tempus AI, Inc. price | Tempus AI, Inc. Quote
Quest Diagnostics: As part of its broader strategy to drive operational improvements across the business, Quest Diagnostics strategically deploys automation and AI to improve quality, service, efficiency and workforce experience. In 2024, Quest Diagnostics acquired select assets of PathAI Diagnostics, a leading provider of AI-powered pathology services. This acquisition is focused on accelerating the adoption of digital and AI pathology innovations in cancer diagnostics. PathAI-driven pathology panel PathExplore offers more than 600 quantitative human interpretable features (HIFs) and is gaining market acceptance.
This Zacks Rank #3 prominent diagnostic testing company has a long-term expected earnings growth rate of 8.2%. The Zacks Consensus Estimate for Quest Diagnostics’ 2025 revenues and earnings indicates growth of 9.1% and 8.6%, respectively.
Quest Diagnostics Incorporated Price
Quest Diagnostics Incorporated price | Quest Diagnostics Incorporated Quote