Recently, the rapid rise of DeepSeek has catalyzed a strengthening in the AI application sector, with AI in medicine being pushed to the forefront.

Cathie Wood has previously stated that medical care is currently the most undervalued AI application field, and the disruptive potential of AI in drug development and precise diagnosis has not been fully priced in.

In mid to late January, SEC filings submitted by 'Pandemic Hill's stock god' Pelosi also showed that she is betting on AI + precision medicine companies. $Tempus AI(TEM.US)$ This has also led the market to pay more attention to the field of AI in medicine. From the stock price trend, since Pelosi disclosed the filing, Tempus AI's stock price has already doubled.

In addition, the USA medical company $Firefly Neuroscience(AIFF.US)$ announced last night plans to join.$nvidia (NVDA.US)$The Connect plan enables AI-powered diagnosis and treatment of brain diseases. Stimulated by this news, the company's stock soared over 170% overnight and is now up nearly 23% in pre-market trading.

ARK Invest released the report "Big Ideas 2025," predicting that AI will completely transform multi-omics tools, drug development, and molecular diagnostics, significantly improving the economic returns of drugs. For instance, AI is expected to reduce the costs of reading and writing biological information such as DNA by 100 times and 1000 times, respectively; AI will lower drug development costs by four times and increase the returns on R&D investments by five times; AI will enhance the efficiency of cancer screening by twenty times and expand the market size by ten times; the commercial value of AI drugs will be twenty times higher than standard drugs and 2.4 times that of the best-in-class precision drugs.

Is AI becoming a theme in medical investment again?

Goldman Sachs previously pointed out at the 2025 International Consumer Electronics Show (CES) Digital Health session that "AI + Medical" will become the most core investment theme attracting global funds in the industry.

Futu News has sorted out some AI medical concept stocks in the U.S. stock market for mooer reference:

Specifically:

• Early disease detection.

$Guardant Health(GH.US)$ Focuses on the field of liquid biopsy and early cancer screening;

$exact sciences(EXAS.US)$ Develops AI-driven cancer screening technology to optimize the tumor detection process;

$AVANT TECHNOLOGIES INC(AVAI.US)$ Focuses on the application of AI algorithms in early disease detection;

• Drug research and discovery.

$Recursion Pharmaceuticals(RXRX.US)$ Advanced AI pharmaceutical TechBio, funded by NVIDIA and Cathie Wood, uses AI algorithms to analyze vast amounts of biological data, allowing for rapid and accurate screening of potential drug targets related to diseases, significantly shortening the preliminary exploration time for drug development.

$Schrodinger(SDGR.US)$ Combining AI with physical modeling to promote software and biotechnology companies for drug molecular docking predictions.

$BioAge Labs(BIOA.US)$ A company that uses AI technology to gain insights into aging factors and develops new therapies based on these insights.

$Absci Corp (ABSI.US)$ A globally leading AI drug discovery platform focused on precise drug design, the company previously received $Advanced Micro Devices(AMD.US)$ Investment;

$AbCellera Biologics(ABCL.US)$ : Utilizing its full-stack AI or AI-driven antibody discovery platform to search and analyze natural immune system databases, designing new antibody drug candidates for partners;

• Multi-omics sequencing

$Tempus AI(TEM.US)$ : Committed to combining AI with medical data to comprehensively enhance the level of precision medicine, with its main business covering genomic sequencing and precision medicine, data platforms and operating systems, AI applications and algorithms, among others, attracting investments from Cathie Wood, Pelosi, and others;

$10x Genomics(TXG.US)$ : Provides single-cell multi-omics solutions to support precision research at the cellular level, gaining investment from Cathie Wood;

$illumina(ILMN.US)$ The largest Gene Sequencing company in the Global, using AI algorithms to highly accurately predict pathogenic gene mutations in patients, received investment from Cathie Wood;

$CRISPR Therapeutics(CRSP.US)$ A leading company in Gene Editing technology, using AI to optimize the development process of gene therapies, received investment from Cathie Wood;

$Beam Therapeutics (BEAM.US)$ Focusing on the research and development of Innovative Drugs in Gene Editing and RNA therapies, received investment from Cathie Wood;

$Twist Bioscience (TWST.US)$ A pioneer in DNA synthesis biology, launched AI + antibody discovery services, received investment from Cathie Wood;

• Automated Medical and Intelligent Robotics

$Intuitive Surgical (ISRG.US)$ : A global leader in minimally invasive care and a pioneer in robotic-assisted surgery;

$Vicarious Surgical(RBOT.US)$ : A company developing minimally invasive surgical robots that integrate Virtual Reality technology;

• Virtual Medical and Remote Monitoring

$molina healthcare (MOH.US)$ : Focused on government health insurance programs;

$cardinal health (CAH.US)$ Global leading pharmaceutical distributor, covering over 0.1 million medical institutions, producing medical surgical products (such as gloves, surgical gowns), operating the largest network of radiopharmacies in the USA.

$Teladoc Health(TDOC.US)$ Global leading virtual medical service provider, the company is applying AI technology to Virtual sitter solutions, helping hospitals enhance patient safety management and medical resource allocation efficiency.

$Stryker Corp (SYK.US)$ Global leading orthopedic and medical technology company, previously acquired AI medical company care.ai to reshape medical services with AI.

$Hims & Hers Health(HIMS.US)$ A telemedicine company integrating AI into its services to enhance personalized patient care.

• Other

$Butterfly Network(BFLY.US)$ Combining AI technology to support the widespread application of mobile medical devices in grassroots medical scenarios, promoting deep applications of AI in the fields of medical imaging and education;

$RadNet(RDNT.US)$ Implementing AI solutions to assist in cancer screening and neuroradiology;

$Weave Communications(WEAV.US)$ Utilizing AI to improve communication efficiency in the medical industry;

$Nano X Imaging(NNOX.US)$ Utilizing AI for medical imaging processing, hailed as a "X-ray domain".$Tesla (TSLA.US)$The Israeli medical imaging company, which received investment from NVIDIA.

$GE HealthCare Technologies (GEHC.US)$ Separate from General Electric, integrating AI into medical devices and digital solutions.

$Definitive Healthcare(DH.US)$ Building an AI medical data analysis platform.

$Veeva Systems(VEEV.US)$ Provides cloud-based AI applications for the life sciences field;

$Doximity(DOCS.US)$ Referred to as 'LinkedIn for doctors', widely utilizes AI technology to enhance user experience and platform functionality;

$Ginkgo Bioworks(DNA.US)$ Utilizes AI-driven technology to design microbes for the production of compounds with industrial application value.

In addition, there are examples in the US stock market such as $Gene Evolution ETF - ARK (ARKG.US)$ 、 $Global X Fds Genomics & Biotechnology Etf (GNOM.US)$ $The Health Care Select Sector SPDR Fund (XLV.US)$ 、 $Vanguard Health Care ETF (VHT.US)$ 、 $iShares Biotechnology ETF(IBB.US)$ 、 $Ishares Trust U.S. Medical Devices Etf(IHI.US)$ Other medical ETFs;

The Hong Kong stock market also includes MedWit Technology (02158.HK) 、 $MEDBOT-B(02252.HK)$ 、 $ZhiYun Health (09955.HK)$ 、 $MEDLIVE (02192.HK)$ 、 $Crystal International Holdings Limited (02228.HK)$Companies combining AI and Medical.

How does the market view this?

On February 3rd, Eva-Maria Hempe, Head of Healthcare and Life Sciences for NVIDIA in Europe, the Middle East and Africa, published an article stating that AI will have transformative impacts on the medical field in the following three areas by 2025:

1) Intelligent agents improving patient medical processes; 2) Robots capable of performing complex surgical tasks; 3) Generative AI tools accelerating drug development.

According to the 21st Century Business Herald, market views suggest that 2025 may be a breakout year for the commercialization of Medical AI, driven by three core factors.

First is the technological breakthrough, with the development of multi-modal large models bringing new opportunities for Medical AI.

Second is the increased capital investment; Morgan Stanley predicts that between 2024 and 2025, the global cloud giants' cloud capital expenditure will approach 380 billion USD, nearly 50 billion USD more than the total for the past three years, providing strong support for Medical AI infrastructure, promoting improved computing power and optimized algorithms, and providing a more solid technical foundation for the development of Medical AI.

Lastly, the resonance of policy and demand; it is predicted that by 2030, the global population over 65 years old will reach 1 billion. As the elderly population increases, the number of chronic disease patients is also on the rise, which places higher demands on medical resources. However, the issue of a shortage of medical staff is becoming increasingly serious, making it inevitable for AI to replace human labor.

From an application value perspective, CSC believes that effectively utilizing AI tools like DeepSeek can help companies reduce costs and increase efficiency and improve profitability. The application value of AI in the medical field is substantial, enhancing the functionality of medical instruments, interpreting diagnostic results, assisting clinical decision-making, and health management, making it a crucial innovative direction and competitive trend that medical companies and hospitals must prioritize. Companies are expected to leverage AI to further enhance product competitiveness and customer loyalty, consolidating their industry position and competitive advantage.

Guosen Securities stated that major global manufacturers, including Microsoft, IBM, Google, and NVIDIA, are all investing in the Medical AI field and collaborating deeply with medical institutions using their own AI resources; overseas investors are also paying particular attention to this sector. In the long run, the healthcare sector has become the area where AI has the most profound impact.

The firm believes that AI will have transformative impacts on healthcare in the following three areas by 2025: 1) Intelligent agents (Agentic AI), which will address the labor shortage and rising care costs in the healthcare field, promote the development of the Saas industry, and alleviate the workload of medical staff.

2) Robots capable of performing complex surgical tasks: Through training and testing in virtual environments, they can collaborate with human doctors in multiple clinical scenarios, enhancing the precision and efficiency of surgeries and improving the fairness of global medical services.

3) Generative AI tools for accelerating drug development: By generating, predicting, and optimizing molecular models, the focus of drug development shifts from discovering new drugs to proactive design and engineering, shortening the development cycle, reducing costs, and pushing drug development into a new era.

However, medical AI also faces some challenges during its development. Data privacy is one of them; medical data contains a lot of sensitive information about patients, and ensuring the security and privacy of this data is a problem that must be addressed in the development of medical AI.

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Editor/Somer