We recently compiled a list of the 10 Buzzing AI Health Stocks. In this article, we are going to take a look at where Amgen Inc. (NASDAQ:AMGN) stands against the other buzzing AI health stocks.

The economic impact of AI is projected to be substantial, particularly in regions like China and North America, which are expected to see GDP boosts of 26% and 14.5%, respectively, by 2030, amounting to $10.7 trillion combined. This surge is mirrored in the healthcare sector, where AI is driving transformative growth. According to SNS Insider, the Artificial Intelligence in Healthcare Market, valued at USD 22.5 billion in 2023, is forecasted to reach a staggering USD 370.14 billion by 2032, expanding at an impressive CAGR of 36.5% from 2024 to 2032. This explosive growth underscores the growing role of AI in revolutionizing healthcare through innovations in diagnostics, treatment, and operational efficiency.

The World Economic Forum also points out that AI's potential in healthcare is particularly promising, given the global shortage of healthcare professionals, projected to reach 10 million by 2030. AI can alleviate the strain by automating routine tasks, reducing physicians' administrative workloads, and enabling earlier and more accurate diagnoses. This has sparked strong investment from both public and private sectors globally, making AI a key technology in the future of healthcare finance.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

AI's integration into healthcare is set to not only drive efficiency but also improve patient outcomes through more precise diagnostics and personalized treatment. Companies have responded by heavily investing in AI R&D, and mergers and acquisitions have accelerated the pace of innovation. As healthcare increasingly embraces AI, experts emphasize the potential for even greater transformations. According to Andrew Ng, a pioneer in AI research, "AI will fundamentally shift the healthcare landscape, enhancing diagnostic accuracy and optimizing patient care while reducing costs."

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.

Our Methodology

For this article, we selected trending health stocks that have AI products driving meaningful revenue gains. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A pharmacist filling a prescription for a complex drug developed by the company.

Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 69 

Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. Amgen has integrated AI into its drug discovery process, using machine learning to identify new drug targets and optimize clinical trials. AI-driven tools have enabled Amgen to accelerate the discovery of treatments for oncology and cardiovascular diseases, reducing the time and cost associated with drug development. These tools allow the company to analyze massive datasets and predict drug efficacy more efficiently.

Amgen’s AI-driven initiatives have contributed to a revenue increase in 2023. For the fourth quarter of 2023, total revenues increased 20% to $8.2 billion in comparison to the fourth quarter of 2022. For the full year of 2023, total revenues increased 7% to $28.2 billion, resulting from a 9% increase in product sales. This growth was driven in part by new therapies developed using AI tools. Amgen expects further revenue growth as it continues to apply AI to enhance its R&D processes, enabling faster drug development and improved clinical outcomes.

Overall AMGN ranks 5th on our list of the buzzing AI health stocks to buy. While we acknowledge the potential of AMGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.