My Top 3 Stocks in Healthcare AI and Digital Health

AI is shaking up healthcare — cutting costs, speeding diagnoses, and transforming entire fields. From virtual visits to personalized treatment plans, these three stocks are riding the wave and catching serious investor momentum.

Healthcare is changing fast — and technology is leading the way.

I’m sure there will always be medical professionals, but the more I interact with AI, the more I wonder how kids trudging through medical school can sleep at night.

I can imagine fields like radiology being taken over almost completely, save for a few human spot-checkers.

Personally, I’m not sure whether that will be a good or bad thing. 

The reduced costs and potentially better health outcomes will be great for patients, of course. I just hope we maintain the human element in healthcare, and that anyone pushed out of a job finds a soft place to land.

But tech in this field is going to advance regardless of my feelings; the profit and efficiency incentives are too powerful. And that, my friends, means opportunities for investors.

Here are my three favorite stocks in this space…

1. Hims & Hers Health (HIMS)

HIMS is a fast-growing telehealth company offering subscription-based access to treatments for hair loss, mental health, weight management, and more — all delivered directly to consumers. 

Its tagline is “skip the awkward doctor visits.”

A key growth driver is its use of AI to personalize care and boost operational efficiency. HIMS is also leaning into high-demand categories like GLP-1 weight-loss drugs, and recently began offering branded medications like Wegovy through pharmacy partnerships. 

The company went public via SPAC during that craze in 2021, and is one of the few such companies to actually achieve profitability. It reported its first annual net income last year and is projecting revenues of $2.3–$2.4 billion for 2025.

The stock is up a staggering 314% over the past year, and it’s enjoyed a huge, 94% ramp-up over the past month. It’s trading for about $57 with a ~$13 billion market cap.

None of the medical problems HIMS focuses on are going away, and I think its simple and discreet approach will only gain traction as more people discover it. 

Check out the company’s website to see its appeal.

2. Oscar Health (OSCR)

OSCR is a tech-focused health insurance company that uses telemedicine and transparent pricing to simplify healthcare and improve the patient experience.

The company offers individual, family, small group, and Medicare Advantage plans, in 20 states, including New York, Texas, California, and Florida. It had about 1.7 million members as of December 31, 2024.

OSCR offers a full-stack tech platform to provide virtual care, personalized services, and tools like the Oscar app for accessing care teams, scheduling appointments, and managing prescriptions.

The company leans on AI for personalized health recommendations and customer service.

It released Q1 2025 earnings last week that crushed expectations with an EPS of $0.92 against a forecasted $0.81. Revenue reached $3 billion for 42% growth year-over-year, and its net income was $275 million, a $98 million improvement.

Its stock is up ~28% on the news, so investors clearly like what they saw. Right now it’s trading at about $16.70 with a ~$4.25 billion market cap.

With its focus on technology and strong financial performance, Oscar Health is one of my favorite stocks right now in the healthcare space.

3. Tempus AI (TEM)

Tempus AI is another name to watch. It’s a health tech company founded in 2015 by a co-founder of Groupon.

The company specializes in precision medicine, using AI to analyze clinical and molecular data, primarily in oncology, cardiology, radiology, and psychiatry.

In January 2025, TEM launched "Olivia," an AI-enabled personal health concierge app. 

Olivia is designed “to empower patients by bringing their health-related data into one central location and leveraging advanced AI to provide actionable insights.”

It can sync data from health devices to track daily metrics, and users can upload health records for olivia to organize “into a dynamic timeline where patients can access their records, including lab results, imaging reports, visit summaries, and even deep clinical data.”

TEM partners with more than 50% of oncologists in the U.S., as well as 19 of the top 20 pharma oncology companies.

The company went public in June 2024 and its stock is up an impressive 85% YTD and 45% over the past month alone. It’s trading around $63.00 with a ~10.8 billion market cap.

It reported strong Q1 2025 revenue of $255.7 million, up 75.4% year-over-year, and a projected $1.25 billion in 2025 revenue.

TEM’s Q1 2025 guidance projected positive adjusted EBITDA of $5 million for the full year 2025, indicating a move toward profitability.

Final Thoughts

As always, investors should do their homework. Not every company will succeed, but these are some of my favorites in this sector.

For those who believe in the future of smarter, tech-driven healthcare, this is a space worth watching.

To Your Success,

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