CNBC’s Jim Cramer on Tuesday shared what he learned from two days at the JPMorgan Healthcare Conference. Although he marveled at the myriad uses of generative artificial intelligence in healthcare, he concluded that Wall Street was more interested in using the new technology for advertising.
Cramer told investors that Amazon and Alphabet, members of the “Magnificent Seven,” posted profit gains on Tuesday after some analysts praised the companies’ advertising capabilities and use of generative AI. He said he had raised his
“Is targeting the right consumers really more important than saving a consumer’s life?” Kramer asked. “No, of course not. But we rarely think about what investing is about in a human sense. It’s about making money. And at the moment, for targeted advertising Analyzing data more efficiently is more valuable than analyzing data to figure out how to guide people to live longer, healthier lives. ”
But Cramer believes there are ways to create a fruitful “intersection of technology and health care,” citing a JPMorgan memo that suggests Nvidia’s health care business is already worth more than $1 billion. He said that The tech giant’s efforts are central to the expansion of “computer-aided drug discovery,” the company’s analysts wrote.
Kramer praised the use of generative AI by some pharmaceutical companies. He said he likes the partnership between Amgen and Nvidia, which combines supercomputers with genomic data to enhance drug discovery. Roche’s CEO told Kramer that AI is helping the company speed up its drug development cycle and reduce costs. He added that Cencora uses AI to track inventory, while Medtronic uses AI to assist doctors during colonoscopies.
But Kramer suggested that computer science has taken precedence over critical medical technology in the minds of many investors.
“Yes, the Abbott Labs pacemaker is an amazing electrotechnical device that saves lives,” Kramer said. “But the computer science behind Amazon and YouTube ads is much more valuable when it comes to the stock market, at least for now.”
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Disclaimer CNBC Investing Club Charitable Trust owns stock in Amazon, Alphabet, and Nvidia.
