GE HealthCare and NVIDIA join forces for AI imaging

SAN JOSE, Calif. - GE HealthCare (NASDAQ: GEHC), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $37.7 billion and annual revenue of $19.7 billion, announced a collaboration with NVIDIA to innovate in the field of autonomous medical imaging, focusing on X-ray and ultrasound technologies. This partnership aims to alleviate the strain on healthcare professionals due to staff shortages and increasing diagnostic demands. According to InvestingPro analysis, the company currently trades at attractive valuations relative to its near-term earnings growth potential.

The collaboration, unveiled at GTC 2025, will leverage NVIDIA’s Isaac for Healthcare platform, designed to enhance artificial intelligence (AI) applications in medical imaging. GE HealthCare seeks to utilize NVIDIA’s technology to automate imaging processes and reduce the workload on radiology staff. With an EBITDA of $3.6 billion and a "GOOD" Financial Health Score from InvestingPro, the company appears well-positioned to invest in technological advancement.

GE HealthCare, a leader in medical technology, has a history of introducing groundbreaking imaging solutions, including the first handheld ultrasound. The company has topped the FDA’s list of AI-enabled device authorizations for three consecutive years, with 85 authorizations. This new venture with NVIDIA promises to continue this tradition by developing AI-driven X-ray and ultrasound systems.

The partnership’s initial focus will be on autonomous X-ray systems, aiming to streamline workflows and allow care teams to concentrate on direct patient care. The use of synthetic data generation is expected to assist in simulating various scenarios, thus automating tasks typically performed by technologists.

In the realm of ultrasound, the collaboration seeks to address the high incidence of work-related musculoskeletal disorders among sonographers by exploring autonomous systems that could minimize physical strain and improve workflow.

Both companies have a history of collaboration, with GE HealthCare previously utilizing NVIDIA technology in the development of its SonoSAMTrack research model, which demonstrated high accuracy in image segmentation.

NVIDIA’s vice president of healthcare, Kimberly Powell, emphasized the potential of AI and physical AI to expand access to advanced imaging systems globally. The partnership is set to begin with the two most widely used diagnostic modalities: X-ray and ultrasound.

While the press release contains forward-looking statements, these are subject to risks and uncertainties that could affect the actual outcomes of the collaboration. The information provided is based on a press release statement from GE HealthCare Technologies Inc. For deeper insights into GE HealthCare’s financial health, growth prospects, and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.

In other recent news, GE HealthCare reported its fourth-quarter sales at $5.32 billion, aligning with consensus estimates and marking a 2% increase year-over-year. The company’s earnings per share (EPS) exceeded expectations, reaching $1.45 compared to the anticipated $1.26. Analysts from Jefferies and Citi have responded positively, raising their price targets for GE HealthCare to $110, while maintaining a Buy rating. Stifel also adjusted its price target to $104, highlighting strong organic order growth and a record backlog of $19.8 billion. GE HealthCare’s management provided guidance for 2025, projecting 2-3% organic growth and operating margin expansion of 40-50 basis points.

In addition to financial performance, GE HealthCare introduced its Genesis portfolio, a suite of cloud-based imaging solutions aimed at enhancing healthcare efficiency. The Genesis suite, deployed on Amazon Web Services, is part of the company’s digital transformation initiatives, with a goal of tripling cloud-enabled products by 2028. According to BTIG, the healthcare sector, including GE HealthCare, is showing strong performance within the S&P 500. Analyst observations suggest GE HealthCare is a ’pre-breakout candidate’ in the sector. These developments reflect GE HealthCare’s strategic focus on innovation and operational growth.

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