Buy 3 AI-Powered Medical Stocks to Strengthen Your Portfolio in Q4

Sep 24, 2026 1:22 PM · YahooFinance

Rising demand for precision and personalized medicine has significantly augmented the need for artificial intelligence (AI)-enabled medical devices to deliver highly individualized diagnostics and treatments.

Over the past several months, generative AI in the medical devices industry has moved from experimental to operational use. Applications include generating synthetic medical images, simulating disease progression, creating potential drug molecules and simulating their effects, to accelerate the long and costly drug development process.

Here, we recommend three medical devices stocks with a favorable Zacks Rank to invest in for the rest of 2026. Despite a volatile September, these stocks have provided more than 5% returns in the past month beating the S&P 500 index's 1.2% return.

These stocks are: Intuitive Surgical Inc. ISRG, Tempus AI Inc. TEM and Thermo Fisher Scientific Inc. TMO. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks in the past month.

Image Source: Zacks Investment Research

Intuitive Surgical is increasingly embedding AI and digital tools into its robotic ecosystem. ISRG operates in the robotic surgery market for soft tissue procedures, where adoption is supported by the shift toward minimally invasive care. The company's platforms include the da Vinci surgical system and the Ion endoluminal system.

ISRG continues to add digital capabilities that can improve training, workflow and hospital program management. The first phase of more than 100 da Vinci 5 updates targets telepresence, simulation-based training and care-team workflow.

ISRG also executed its first My Intuitive+ renewals, covering telepresence, simulation and AI-driven case insights, and no customer in the initial cohort opted out. These tools can increase the utility of the installed base and reinforce customer engagement.

Intuitive Surgical has an expected revenue and earnings growth rate of 16.7% and 20.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 2.6% over the last 60 days.

ISRG has an expected revenue and earnings growth rate of 12.5% and 11.6%, respectively, for the next year. The Zacks Consensus Estimate for next year's earnings has improved 0.1% over the last 30 days.

Tempus AI is a technology company advancing precision medicine through the practical application of AI principally in healthcare. TEM provides AI-enabled precision medicine solutions to physicians so that they can deliver personalized patient care, and parallel facilitates for the discovery, development and delivery of optimal therapeutics.

TEM's AI applications include analyzing patient data, generating clinical notes, identifying care gaps, and assisting with treatment decisions, particularly in oncology and cardiology. TEM integrates data including phenotypic, morphologic, and molecular data from different sources to provide a more comprehensive view of a patient's condition.

Tempus AI has an expected revenue and earnings growth rate of 25.5% and 55.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 22.9% over the last 60 days.

TEM has an expected revenue and earnings growth rate of 24.4% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next year's earnings has improved more than 100% over the last 60 days.

Thermo Fisher Scientific is expanding AI capabilities across its software portfolio and using AI within its PPI Business System to improve productivity, quality and customer responsiveness. TMO integrates AI into drug development, helping researchers identify and eliminate ineffective drug candidates faster and shorten clinical trial cycle times through its partnership with Open AI.

TMO is also strengthening customer collaboration through its new U.S. Bioprocess Design Center and a precision health partnership in Singapore that combines Olink proteomics with the Orbitrap Astral platform. The commercial engine supports adoption by linking new technologies with a broad customer base and integrated service offering.

Thermo Fisher Scientific has an expected revenue and earnings growth rate of 7.3% and 9.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year's earnings has improved 0.4% over the last 60 days.

TMO has an expected revenue and earnings growth rate of 5.1% and 9.5%, respectively, for the next year. The Zacks Consensus Estimate for next year's earnings has improved 0.3% over the last 60 days.

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