Healthcare could be one of the largest future opportunities for NVIDIA (NVDA), according to TD Cowen analysts on Monday.
The firm hosted NVIDIA's VP of Healthcare Kimberly Powell at its 44th Annual Health Care Conference, with the focus on the "significant opportunity" to leverage AI across healthcare verticals, including drug discovery, medical devices and imaging, and digital health.
According to TD Cowen, Nvidia (NASDAQ:NVDA)'s management described the digital transformation of the healthcare industry as one of the largest and most data-intensive opportunities in tech.
"In fact, the company estimates health care already exceeds $1B in revenue (both direct and indirect) and that the market opportunity could be tens of billions ($) over time," the bank wrote.
"While this computing TAM would obviously not all accrue to NVIDIA, in our view, the company is extremely well-positioned to capture significant value over time as both R&D and CapEx dollars in the massive global health care industry migrate toward generative AI computing," they added.
TD Cowen argues that NVIDIA has significant opportunities in drug discovery, MedTech, and next-gen digital health. The company's approach to healthcare is "emblematic of its strong position across genAI verticals."