We recently published a list of the 11 Hidden AI Stocks to Buy Right Now. In this article, we are going to take a look at where GE HealthCare Technologies Inc. (NASDAQ:GEHC) stands against other hidden AI stocks.
David Grain, Founder & CEO of Grain Management, joined CNBC on May 1 to discuss the AI-driven demand for data centers and tariff uncertainty. The main concerns regarding tariffs are the potential impact on costs, the resilience of supply chains, and the overall effect on business operations and their expansion. He also shared his perspective on why investors are still confident in the broadband and digital infrastructure sector. He characterized broadband as universally essential and emphasised that the demand for faster connectivity has not slowed, which is why the regulatory support for broadband expansion is globally robust. Grain noted that the administration has also met expectations for lighter regulation in the infrastructure sector, which makes it easier to advance projects and close deals. He described the admin’s stance as pro-growth and supportive of secure and competitive networks. Grain also observed that infrastructure, especially broadband, is an area where there is bipartisan support, given its positive impact on economic growth at both the state and local levels.
DeepSeek’s announcement was also followed by reports that suggested that some companies might be pulling back on data center spending. However, the latest earnings reports appeared to settle at least this debate and confirmed that the investments in this sector were still ongoing. David Grain elaborated on the current trends in data center investments and also stated that the demand for data centers is rising due to the increasing expansion of AI, as it requires vast amounts of computing power. He explained that while the demand here is not slowing, the feasibility of building new data centers is still influenced by the availability of reliable and high-capacity electricity.
We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is GE HealthCare Technologies Inc. (NASDAQ:GEHC) a Hidden AI Stock to Buy Right Now?
A radiologist in a lab examining a computed tomography scan of a patient.
Number of Hedge Fund Holders: 64
GE HealthCare Technologies Inc. (NASDAQ:GEHC) manufactures and markets products, services, and digital solutions for the diagnosis, treatment, and monitoring of patients. It operates through four segments. The company also provides new-age medical technology, cloud-first AI-enabled solutions, and data analytics services.
In Q1 2025, the company’s AVS (Advanced Visualization Solutions) segment reported revenue growth of 3% year-over-year, with particularly strong performance in the US. This growth, while currently a smaller portion of the overall $4.8 billion revenue, is important as GE HealthCare’s product roadmap for AVS is increasingly centered on accelerating recurring revenue through digital and AI-powered solutions across its ultrasound and Interventional Guided Therapy product portfolios.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is actively investing in R&D within the AVS segment to further advance its AI capabilities. On January 8, Jefferies analysts recently raised the stock’s rating from Hold to Buy due to a bullish outlook for the company. The analysts emphasized GE HealthCare’s ability to acquire market share in diagnostic imaging and prenatal diagnostics, which Jefferies regarded as increasing and under-modeled for future development.
Oakmark Fund stated the following regarding GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q4 2024 investor letter:
“GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a leading global medical technology company that was spun off from General Electric in January 2023. As a standalone company, we expect GE HealthCare to benefit from increased focus, better aligned management and incentives, and an improved corporate culture. We believe these changes will help drive higher margins and organic growth. In addition, we think GE HealthCare is well-positioned to capitalize on technology trends as a greater portion of the value proposition comes from AI-enabled software and a shift toward precision care. A lack of appreciation for the company’s self-help potential coupled with short-term concerns around weak demand in China provided us with the opportunity to purchase shares at a low valuation relative to other high-quality medical technology companies and at the lowest price relative to the S&P 500 since the IPO.”
Overall, GEHC ranks 4th on our list of the hidden AI stocks to buy right now. While we acknowledge the growth potential of GEHC, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GEHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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