Nvidia recently made significant announcements regarding partnerships with Johnson & Johnson and GE Healthcare, leveraging generative AI in surgery and enhancing medical imaging. These developments, along with the introduction of numerous AI-powered healthcare tools at the 2024 GTC AI conference, underline the importance of medicine for Nvidia's future revenue growth in non-tech sectors. Raj Joshi, a technology analyst and senior vice president at Moody's Ratings, emphasizes Nvidia's popularity due to its facilitation of previously complex tasks, saving time, money, and resources. He acknowledges the potency of healthcare in various sectors such as biotechnology, chemicals, and drug discovery. Nvidia's shares have risen by nearly 100% year-to-date, demonstrating the untapped potential investors recognize in the biotech industry. AI has the capacity to expedite drug discovery processes and repurpose drugs for alternate applications when initially developed treatments fail to yield desired outcomes. Arda Ural, EY Americas health and life sciences industry market leader, supports the belief that AI's impact on the pharmaceutical, medtech, and biotech industries is more rooted in tangible outcomes rather than mere hype. Ural points out the significantly higher interest among biotech CEOs in integrating generative AI into their companies compared to other technologies they have encountered throughout their careers. According to Ural, drug development is a high-risk, time-consuming, and expensive process, often taking at least a decade from concept to clinical studies. EY's survey revealed that 41% of biotech CEOs are actively exploring practical uses of generative AI, a substantially higher adoption rate compared to previous experiences. Nvidia's dedication to healthcare is evident in its ongoing efforts.

During a quarterly earnings call in February, Nvidia mentioned multiple ways in which its technology is being adapted for the medical field. Companies like Recursion Pharmaceuticals and Generate: Biomedicines are leveraging Nvidia's AI infrastructure through hyperscale or GPU specialized cloud providers to advance their biomedical research. Colette Kress, Nvidia's chief financial officer, highlights the impact of digital biology and generative AI in revolutionizing drug discovery, surgery, medical imaging, and wearable devices in the healthcare sector. Nvidia has amassed a wealth of expertise in healthcare over the past decade, evident in the development of the NVIDIA Clara healthcare platform and NVIDIA BioNeMo, a generative AI service for computer-aided drug discovery. Nvidia's strategic investments are also significant, as the company allocated $50 million to Recursion for its drug discovery projects last year. Recursion utilizes Nvidia's cloud platform to train its AI models using biological and chemical data. Collaborations with Roche's Genentech and Schrödinger further emphasize Nvidia's commitment to developing new medications and optimal treatment protocols through effective drug discovery processes.