Artificial intelligence in healthcare sits at the crossroads of powerful data, rising care costs, and a world focused on inflation, energy shocks, and supply chain shifts. While oil, rates, and trade headlines pull markets in different directions, AI tools that can improve accuracy, access, and affordability in medicine are drawing close attention. The Transformative AI Healthcare Stocks screener looks for companies using AI to sharpen diagnostics, personalise treatment, streamline clinical workflows, and speed up research. In this article, you will see three stocks from that screener that illustrate how this theme is playing out in listed markets today.

GeneDx Holdings (WGS)

Overview: GeneDx Holdings is a genomics company that provides whole exome and whole genome sequencing, using AI to interpret complex genetic data so doctors can diagnose rare diseases, assess hereditary risk, and support cancer testing, with a particular focus on pediatric patients.

Operations: GeneDx generates about US$437.5 million in revenue from its Gene Dx segment and a US$5.2 million segment adjustment, with all reported revenue of roughly US$442.7 million coming from the United States.

Market Cap: US$1.2b

For investors looking at AI in healthcare, GeneDx sits at the intersection of powerful software and high value clinical decisions, using proprietary AI platforms and a growing rare disease dataset to interpret exome and genome tests at scale. The company is targeting a return to profitability in 2026 and is already seeing strong exome and genome volume growth. At the same time, recent revenue guidance cuts, an impairment on the Fabric Genomics acquisition, and reliance on higher risk funding highlight execution and financing pressure. Analysts see meaningful upside potential if growth and margin expectations are met, but recent volatility and insider selling indicate that sentiment is far from settled, which is why a closer look at the full thesis may matter now.

GeneDx’s rare disease dataset and AI engine could be the real story, while funding pressure is just the headline. Before sentiment flips again, read the 2 key rewards and 2 important warning signs (1 is major!)

Insmed (INSM)

Overview: Insmed develops and sells treatments for serious and rare lung and neuromuscular diseases, combining approved products like ARIKAYCE with a late stage pipeline that includes brensocatib for bronchiectasis, treprostinil palmitil for pulmonary hypertension, and early gene and protein engineering programs for conditions such as Duchenne muscular dystrophy and amyotrophic lateral sclerosis.

Market Cap: US$29.6b

Insmed sits at the intersection of high unmet medical need and AI enabled drug development, pairing an approved product in ARIKAYCE with late stage programs such as brensocatib and treprostinil palmitil. Management expects these programs to support a path to cash flow positivity without new capital by 2027. Analyst commentary and recent index inclusion point to confidence in its long term potential, yet investors still need to weigh a history of losses, elevated valuation metrics and reliance on external funding. For anyone following AI in healthcare, the key consideration is how these clinical, regulatory and funding pieces fit together in the medium term and what that could mean for risk and reward.

Insmed’s surge in attention and late stage pipeline progress could be masking a crucial detail in its risk reward profile, so read the 3 key rewards and 1 important warning sign

Lantheus Holdings (LNTH)

Overview: Lantheus Holdings develops and sells diagnostic and therapeutic imaging products used by doctors worldwide to detect and manage heart disease, cancer, and neurological conditions, combining long standing radiopharmaceutical brands with newer AI enabled tools such as aPROMISE and PYLARIFY AI.

Market Cap: US$5.6b

Lantheus sits at the center of AI driven medical imaging, with products like PYLARIFY AI and Neuraceq tied to large markets such as prostate cancer and Alzheimer’s disease, and a pipeline that includes MK-6240 and PNT2003 that could broaden its reach in neuro and oncology imaging. Earnings have grown strongly over the past 5 years and margins have improved. Yet the stock trades on a P/E below the industry average, even as analysts raise targets on the back of TruVu, PNT2003 and other late stage assets. The catch is heavy reliance on PYLARIFY, pricing pressure, reimbursement risk and a funding mix built entirely on higher risk borrowings. That combination of growth potential and concentration risk is what investors often miss at first glance.

Lantheus earnings strength and a P/E below the industry average hint at a story the market may not have fully priced, especially with TruVu and PNT2003 in the wings, so read the 4 key rewards and 1 important warning sign

The three stocks in this article are just a starting point, and the full Transformative AI Healthcare Stocks screener flags 32 more companies with equally compelling narratives that you have not seen yet through the Transformative Artificial intelligence (AI) Healthcare Stocks screener.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.