Artificial intelligence may be the hottest concept in the technology sector, and it is also profoundly transforming the healthcare industry. As Wall Street rushes into the AI arena, AI chip giant NVIDIA has grown into the highest-valued component of the S&P 500 index. There is no doubt that AI will be a world-changing technology, but investors’ perspectives should not be limited to the tech industry.
As leading companies in the healthcare field, Bristol-Myers Squibb (BMY) and Intuitive Surgical (ISRG) are actively leveraging artificial intelligence technology. These two companies and their shareholders may see even broader growth prospects in the future.
Global pharmaceutical giant Bristol-Myers Squibb recently announced a partnership with Microsoft, the third-largest component of the S&P 500 index. The company primarily focuses on cardiovascular diseases, cancer, and immune system disorders.
Microsoft’s imaging technology already covers 80% of hospitals in the United States. By integrating this system with Bristol-Myers Squibb’s expertise in oncology and drug delivery, the two aim to build an AI-supported workflow for early diagnosis of lung cancer and to plan clearer treatment pathways.
Although this appears to be a localized collaboration, it highlights the value of AI in assisting healthcare professionals in identifying and treating diseases. If the pilot is successful, Bristol-Myers Squibb is likely to extend this partnership to more disease areas.
Notably, unlike the current market darling NVIDIA, Bristol-Myers Squibb maintains a relatively high dividend yield of 4.6%, and its price-to-earnings ratio is only 18 times, below the market average. For long-term income-oriented investors, this pharmaceutical company’s AI strategy may be the long-awaited buying signal.
Intuitive Surgical is currently more suitable for aggressive growth investors, with a price-to-earnings ratio as high as 70 times. However, the company continues to demonstrate strong growth: the number of da Vinci surgical robots installed in 2025 increased by approximately 13% compared to 2024, while the volume of surgeries performed using the company’s robots rose by 19%. This not only indicates strong demand for surgical robots but also reflects robust demand in the terminal market for robotic surgery.
At the end of 2025, Intuitive Surgical received approval from the U.S. FDA to integrate real-time AI imaging technology into surgical robots to assist in lung surgeries. This technology helps medical professionals address the challenge of continuous lung movement—traditional pre-operative imaging may become outdated before the procedure even begins. In the long run, the scenario of AI surgeons leading complete surgeries is not far off, which would open up even greater growth opportunities for Intuitive Surgical.
Although it remains uncertain where AI will lead the world, it is an undeniable fact that companies are rapidly learning to use this technology to improve their products and services. For those looking to seize the early opportunities of AI development in the healthcare sector, Bristol-Myers Squibb and Intuitive Surgical are specific investment targets worth paying attention to right now.
