3 Healthcare Stocks Using AI to Drive Growth

Artificial intelligence is significantly transforming healthcare by improving efficiency and patient outcomes, presenting key investment opportunities. Hims & Hers Health, a telehealth provider leveraging AI for administrative streamlining, has seen a 121% YTD gain in 2025, though experiencing volatility. Tempus AI, utilizing AI for precision oncology and drug discovery, is up 128% YTD 2025, bolstered by a recent FDA 510(k) clearance. Boston Scientific, integrating AI into medical devices and recently receiving FDA approval for its FARAPULSE system, has gained 17% in 2025, underscoring AI's growing impact across diverse healthcare sectors.

Analysis

Artificial intelligence is presented as a primary catalyst for transformation within the healthcare sector, addressing critical issues such as physician burnout, which affects 93% of practitioners according to one survey, and improving operational efficiency. Hims & Hers Health (HIMS) and Tempus AI (TEM) are highlighted as high-growth, pure-play AI beneficiaries, exhibiting significant stock appreciation of 121% and 128% year-to-date in 2025, respectively. HIMS leverages AI for administrative streamlining in telehealth, though its stock performance is marked by volatility, meme stock interest, and technical resistance around $65. Tempus AI is positioned in the high-value precision oncology space, with its data utilized by 19 of the top 20 pharmaceutical firms and its growth bolstered by a recent FDA 510(k) clearance for its xR IVD device; however, it faces considerable headwinds with over 25% short interest and resistance near its $89 all-time high. In contrast, Boston Scientific (BSX) represents a more established medical device firm integrating AI, showing a more modest 17% year-to-date gain. Its recent FDA approval for the FARAPULSE system has prompted analyst upgrades, but the stock has struggled to surpass its 52-week high, suggesting a more cautious investor sentiment compared to the high-momentum names.

Key Decisions for Investors

• Investors considering the high-growth profiles of Hims & Hers (HIMS) and Tempus AI (TEM) must weigh the substantial YTD gains against significant risks, including high short interest for TEM and technical resistance levels for both stocks, warranting a cautious approach to entry points.
• The recent FDA approvals for Tempus AI's xR IVD device and Boston Scientific's FARAPULSE system are critical catalysts; their commercial adoption and impact on revenue growth should be closely monitored to validate the investment theses.
• Boston Scientific (BSX) offers a more conservative exposure to the healthcare AI theme with performance closely tracking the S&P 500, but a sustained break above its 52-week high would be a key technical signal confirming renewed investor confidence and growth acceleration.