Artificial intelligence may be all the rage in the tech industry, but it’s also having a huge impact on healthcare.
Artificial intelligence chip giant Nvidia has become the most important component of S&P500as Wall Street jumps on the AI bandwagon. There is no doubt that AI will technology that changes the world. However, investors should not only consider the technology sector.
Bristol Myers Squibb (BMY 0.53%) And Intuitive surgical (ISRG 0.37%) are leaders in the healthcare industry who also use AI. And other advances could then be made, both for companies and for their shareholders.
Bristol Myers Squibb partners with Microsoft
Bristol Myers Squibb is one of the largest in the world pharmaceutical companies. Its main focus is cardiovascular, cancer and immune disorders. The company has just announced a partnership with Microsoft (MSFT +3.28%)the third largest component of the S&P 500 index.
Image source: Getty Images.
Microsoft’s imaging technology is used in 80% of U.S. hospitals. By combining these systems with Bristol Myers Squibb’s expertise in oncology and drug delivery, the two companies hope to create a AI-enabled workflow that leads to earlier diagnosis of lung cancer and a clearer path to treatment.
In some ways this is a small event, but it highlights the value that AI can offer in helping healthcare professionals identify and treat disease. And if successful, it seems very likely that Bristol Myers Squibb will attempt to expand its efforts to other indications.
Today’s change
(-0.53%) $-0.29
Current price
$54.65
Key Data Points
Market capitalization
$111 billion
Daily scope
$54.23 -$55.18
52 week range
$42.52 -$63.33
Volume
9.7 million
Average flight
15M
Gross margin
64.33%
Dividend yield
4.56%
That said, while Nvidia is currently a market darling, Bristol Myers Squibb is not. It has a high rate of 4.6% dividend yield and a below-market price-to-earnings ratio of 18. If you’re a long-term investor, this drugmaker’s AI could be the buy signal you’ve been waiting for.
Intuitive Surgical is just getting started
Intuitive Surgical is a stock that only aggressive growth investors should consider right now. The P/E ratio is a solid 70. However, the company continues to grow very quickly, noting that the number of Da Vinci surgical robots installed in 2025 was up about 13% compared to 2024. At the same time, the number of surgeries using one of the company’s robots increased by 19%. So, not only is there a very strong demand for robots, but there is also an even stronger demand in the end market for robotic surgery.
Today’s change
(-0.37%) $-1.96
Current price
$523.85
Key Data Points
Market capitalization
$186 billion
Daily scope
$521.25 -$539.72
52 week range
$425.00 -$609.08
Volume
104 KB
Average flight
1.8M
Gross margin
70.56%
In late 2025, Intuitive Surgical won FDA approval to integrate real-time AI imaging technology into its robots to facilitate lung surgery. The benefit to the healthcare professional is that it helps address the very real fact that the lungs are always moving. Preoperative images may be out of date before they are used. In the long term, it’s not hard to imagine an AI surgeon handling the entire operation, which could lead to even greater growth for Intuitive Surgical.
The future is wide open
While it’s too early to know where AI will take the world, it’s clear that businesses are quickly learning how to use the technology to improve their products and services. Bristol Myers Squibb and Intuitive Surgical are real-world examples you can buy today if you want to get a head start on AI in healthcare.
Ruben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Bristol Myers Squibb, Intuitive Surgical, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Mad Motley has a disclosure policy.