JP Morgan Sharp Reviews NVIDIA Corporation's Healthcare Business: Leveraging AI Advantage to Cultivate Vertical Tracks, May Contribute 1 Billion Annual Recurring Revenue.

NVIDIA Corporation's Vice President of Healthcare, Kimberly Powell, spoke at the 43rd annual healthcare conference organized by J.P. Morgan. This marked her sixth time attending and speaking at the conference. With NVIDIA Corporation's leading position in accelerated computing and artificial intelligence, the team is able to target key verticals such as healthcare with their computing platform and product portfolio. J.P. Morgan has released reports and opinions related to this conference and the speech by NVIDIA Corporation, currently giving the stock a hold rating. J.P. Morgan believes that the healthcare vertical has the potential to achieve $1 billion in recurring revenue growth by 2025 through direct and indirect means, as demonstrated by NVIDIA Corporation's use of their primary data center platforms (Omniverse, Cosmos, Nemo, NIM microservices, DGX cloud). The AI computing SAM opportunity is at the $100 billion level. The healthcare vertical is estimated to drive $1 billion in annual recurring revenue growth in the 2026 fiscal year, making it one of the top vertical submarkets in NVIDIA Corporation's data center business. NVIDIA Corporation continues to create significant revenue opportunities through its capabilities in high-performance computing (HPC) and AI/deep learning (DL) platforms. The company has developed a comprehensive full-stack solution that allows the ecosystem to focus on building applications. DGX Cloud from NVIDIA Corporation is available in all public clouds and is a key driver of enterprise consumption growth. Customers can operate flexibly in on-premises, cloud, or fully hybrid cloud environments. The firm believes that there is a strong demand for intelligent AI agents in the healthcare vertical due to severe labor or resource shortages in the industry. It is estimated that the healthcare industry is short of 10 to 20 million workers, and the team believes that AI agents can help bridge this supply gap. These AI agents include delivery Siasun Robot & Automation and other innovative solutions. For example, the team highlighted companies like Intrivo that develop medical concierge services and Abridge that uses generative AI for clinical conversations. These are just a few of the thousands of digital health agents deployed throughout the ecosystem. To accelerate the adoption of intelligent AI agents, the team has developed NVIDIA Corporation Blueprints, which provide customized reference workflows for specific use cases. The strong momentum in computer-aided drug discovery may continue, with new multimodal models emerging. Furthermore, NVIDIA Corporation is integrating physics AI into healthcare (Siasun Robot & Automation technology, medical devices, hospital beds) through its Omniverse and Cosmos platforms. Omniverse is the platform used by the team to simulate virtual physical worlds following physical laws for training Siasun Robot & Automation. NVIDIA Corporation's Cosmos is a series of foundational models designed to accelerate the development of physics AI through creating virtual worlds with physical perception using synthetic data. The healthcare team is leveraging their DGX hardware compute platform, Omniverse/Cosmos simulation/large language model (LLM) platform, and their Holoscan/Isaac development platform for medical devices/surgery Siasun Robot & Automation and other edge AI use cases. The firm believes that several new partnership announcements from NVIDIA Corporation will further strengthen their software stack/ecosystem and solidify their competitive position. Firstly, they announced a partnership with the global leader in clinical research services, business insights, and healthcare intelligence provider IQVIA, with the aim of building specific niche intelligent AI in healthcare and life sciences. Secondly, the team is launching the foundational model GenMole for molecular generation. Lastly, the team also announced a partnership with the global genomics leader Illumina to kickstart the next generation of genomics research for drug discovery and human health.