Over the last two years, investors have become captivated by artificial intelligence (AI). Semiconductor manufacturers, cloud computing providers, and software developers have dominated headlines as capital flowed into nearly every corner of the AI ecosystem. The excitement is understandable. AI has the potential to transform industries, improve productivity, and create entirely new business models. However, in the AI fervor, investors may be overlooking other areas of innovation.
Medical technology and device stocks are one prime example.
Despite their long history of innovation, medical device stocks have struggled to keep pace with the broader market in recent years, leaving the industry with a meaningful valuation reset even as it continues to generate new products, strong cash flows, and attractive long-term growth opportunities—including AI applications. As a result, investors may be able to access innovation and real profits at low prices.
