In a recent revelation, CNBC’s Mad Money host Jim Cramer disclosed that the financial market values artificial intelligence (AI) technology more for advertising than for healthcare.
What Happened: Cramer shared his insights while attending JPMorgan’s healthcare conference, reported CNBC on Tuesday. He observed that Wall Street was more interested in using generative AI for advertising purposes.
He pointed out that top companies like Amazon AMZN and Alphabet GOOGL saw their stock prices rise due to their AI-driven advertising capabilities.
“Could targeting the right consumer really be more important than saving the consumer’s life?” Cramer questioned.
He added that analyzing data for targeted ads holds more value in the current investment landscape than using AI to enhance human life.
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However, Cramer acknowledged the potential for AI’s intersection with healthcare. He referenced a JPMorgan note highlighting Nvidia’s NVDA $1 billion+ healthcare business, which is pivotal for “computer-aided drug discovery.”
He also commended pharmaceutical companies like Amgen AMGN, Roche RHHBY, Cencora COR, and Medtronic MDT for their use of generative AI in various healthcare applications.
Why It Matters: AI is becoming an increasingly significant investment sector, with generative AI platforms like ChatGPT triggering a global surge of interest and funding. The AI and machine learning market hit $197.5 billion in end-user spending in 2022, and generative AI is projected to become a $1.3 trillion market by 2032, growing at a compound annual growth rate of 42%, says Bloomberg Intelligence.
Meanwhile, the healthcare sector has been witnessing significant movements in the stock market. A recent Benzinga report highlighted 12 healthcare stocks that were notable movers in the market on Tuesday. These developments underscore the noteworthy impact of AI and technology on the healthcare industry.
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