3 Healthcare Stocks Using AI to Drive Growth
Artificial intelligence (AI) is transforming the world in much the same way as the adoption of the internet did 30 years ago. This is about more than just search; AI is changing the way many industries handle administrative tasks. One area undergoing a significant transformation is healthcare.
The use of generative and agentic AI is helping physicians and care teams make more accurate diagnoses, streamline administrative tasks, and reduce the risk of provider burnout. According to Athenahealth’s third Physician Sentiment Survey (PSS), 93% of physicians feel burned out on a regular basis.
This will only become more important with an aging population that will amplify the existing supply and demand imbalance. AI can help bridge the gap between efficiency and personalized care.
That means investors should look at companies that are already using AI to improve outcomes and efficiency. Here are three healthcare stocks that fit that description and have catalysts that will lead to future growth.
AI-Enhanced Telehealth at Scale
Hims & Hers Health Inc. (NYSE: HIMS) has been one of the best-performing stocks in 2025. It’s up 121% for the year and 29% in the 30 days ending September 24. The stock caught on with the meme stock crowd, which could account for some of those gains. But that shouldn’t keep long-term investors away from the growth story.
As a telehealth company, Hims & Hers is built for AI. Rooting out inefficiency from the process is the only path forward for a telehealth company. Hims is using AI to help streamline administrative tasks, including triaging patient concerns, automating follow-up reminders, and streamlining prescription refills.
At $53.86 per share as of this writing, HIMS stock is down about 21% from the all-time high it made in February. The stock has also twice hit resistance around $65 per share. Combine that with high volume, and it’s evident that traders, including short sellers, are driving the price action.
However, that doesn’t mean long-term investors need to stay away. Analysts give the stock a consensus Hold rating. But on September 12, Canaccord Genuity Group reiterated a Buy rating and gave the stock a $68 price target. Timing entries will be key, but HIMS stock is likely to have a strong AI tailwind.
Precision Medicine and Oncology Insights
Tempus AI (NASDAQ: TEM) is another healthcare company that is using AI to improve patient outcomes. In addition to being a leader in applying AI and machine learning to genomic, clinical, and molecular data to develop precision medicine.
However, the company’s focus on oncology is another catalyst for TEM stock. The company’s AI tools help physicians tailor cancer treatment plans, predict outcomes, and identify real-time clinical trial opportunities.
The company’s relevance goes beyond the doctor’s office. In fact, 19 of the world’s top 20 pharmaceutical companies are using Tempus data for drug discovery. In September, the company received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its RNA-based Tempus xR IVD device. This will give these companies another tool in the area of RNA sequencing.
Like HIMS, Tempus has seen volatile trading activity in 2025. TEM stock is up 128% in 2025 and 17% in the past three months. However, it also has over 25% short interest and has shown clear resistance around its all-time high of $89 per share. Nevertheless, analysts remain bullish on the stock and are raising their price targets.
Smarter Devices with AI Integration
Boston Scientific Corp. (NYSE: BSX) is a medical device company that is using AI to help streamline the need for data processing. The company’s digital health solutions help improve performance and outcomes. The benefit to clinicians is the ability to focus on patient care while automating monitoring and diagnostic tasks.
A recent catalyst for Boston Scientific was the FDA approval of its FARAPULSE pulsed field ablation system for expanded use to treat certain atrial fibrillation, which impacts nearly 60 million people. Since the announcement, at least two analysts have reiterated their Buy rating on BSX stock and given stock price targets well above the consensus target.
BSX stock is up about 17% in 2025, much more in line with the S&P 500. However, investors have had difficulty pushing it past its 52-week high like the other two stocks on this list.
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