NVIDIA’s Rise Puts These 3 Healthcare Stocks in the Spotlight

Graphic processing units (GPUs) and artificial intelligence (AI) are among the most searched terms online these days, making companies like NVIDIA (NVDA Quick QuoteNVDA – Free Report) the focal point of investors’ interest. While NVIDIA’s stock has surged 91.3% over the past year, rival chipmakers worldwide too are rapidly expanding their presence, intensifying competition in the global GPU space. With AI adoption accelerating across industries — from healthcare to finance — investors are eager to capitalize on anything linked to this technological revolution.

Within healthcare, in particular, over the past couple of years, AI and GPUs have gradually revolutionized diagnostics, treatment and operational efficiency. NVIDIA recently talked about its end-to-end BioNeMo platform, which is designed to accelerate AI model creation, customization and deployment for drug discovery and molecular design. The company noted that global pharmaceutical and TechBio industry leaders, academic pioneers and AI researchers are adopting this open-source BioNeMo Framework to advance drug discovery and accelerate molecule design. This is not all, in medical imaging and diagnosis, the company’s Clara platform is gaining recognition for improving the accuracy and speed of diagnosing conditions such as cancer, cardiovascular diseases and neurological disorders.

Considering this rapid transformation, we discuss three healthcare stocks with enormous growth prospects in this niche — Illumina (ILMN Quick QuoteILMN – Free Report) , IQVIA (IQV Quick QuoteIQV – Free Report) and Dexcom (DXCM Quick QuoteDXCM – Free Report) . These companies are leveraging AI advancements to drive innovation in genomics, clinical research and diabetes management. With the increasing adoption of AI-powered solutions, they are well-positioned to capitalize on significant investment opportunities in the near future.

AI and Healthcare

Going by a Research and Markets report, globally, AI in the healthcare market is projected to reach $164.16 billion by 2030 from $14.92 billion in 2024, at a CAGR of 49.1% during the forecast period.

Image Source: Research and Markets

As per the report, the cloud-based segment is expected to witness the highest growth due to its advantages, including seamless data integration, remote accessibility, cost efficiency, security and scalability. The increasing demand for remote healthcare services and telemedicine further accelerates adoption. Further, AI applications like predictive analytics, clinical decision support, and medical imaging integration are going to enhance operational efficiency.

Overall, AI-powered imaging, fueled by high-performance GPUs, enables faster and more accurate disease detection in radiology and pathology. In drug discovery, AI accelerates molecular simulations, reducing development timelines. Personalized medicine is advancing as AI analyzes vast datasets to tailor treatments. Robotics-assisted surgeries are becoming more precise, improving patient outcomes. Additionally, AI-driven administrative tools optimize hospital workflows and reduce costs. As AI and GPUs continue to evolve, the healthcare sector stands to gain from unprecedented improvements in patient care and efficiency.

3 High-Growth Healthcare Stocks

Illumina: In 2025, this renowned life sciences company announced a collaboration with NVIDIA to advance technology platforms for analyzing and interpreting multiomic data. By combining advancements in AI with multiomic data at scale, the partnership seeks to optimize the analysis of vast amounts of data involved in multiomic research.

Additionally, Illumina plans to incorporate models developed by the NVIDIA Biology Foundation Model Research Team into its offerings. This integration will allow customers to leverage these models alongside their proprietary datasets, improving performance in tasks such as cell state prediction and gene transcription analysis.

The stock has a Zacks Rank #3 (Hold) and a long-term expected earnings growth rate of 13.4%. In 2025, Illumina is expected to record earnings growth of 83.3%.

IQVIA: The company is actively advancing the integration of AI in healthcare, focusing on enhancing patient outcomes and streamlining life sciences operations. Its approach, termed healthcare-grade AI, emphasizes data privacy, regulatory compliance and patient safety.  IQV, too, partnered with NVIDIA earlier in 2025 to utilize the NVIDIA AI Foundry. This collaboration enables IQVIA to create custom foundation models based on its vast data and expertise, developing agentic AI solutions to advance applications in healthcare and life sciences.

This Zacks Rank #3 company has a long-term historical earnings growth of 12.4%. In 2025 and 2026, IQVIA is expected to report earnings growth of 6.5% and 11.7%, respectively.

Dexcom: This continuous glucose monitoring systems (CGM) developer introduced a proprietary GenAI platform, becoming the first CGM manufacturer to integrate GenAI into glucose biosensing technology. The initial application of this technology is found in Dexcom’s over-the-counter glucose biosensor, Stelo. Dexcom developed this GenAI platform in collaboration with Google Cloud, utilizing the Vertex AI platform and Gemini models.

This Zacks Rank #3 company has a long-term historical earnings growth rate of 29.7%. In 2025 and 2026, DXCM is expected to report earnings growth of 20.7% and 21.6%, respectively.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.