Forget Nvidia. Johnson & Johnson and 2 Other AI Stocks Are Beating the Market by 29 Points.

Healthcare and biotech companies are increasingly leveraging AI for drug discovery, leading to faster, cheaper, and more precise results. This practical application of AI in the healthcare sector creates an interesting investment opportunity as the demand for healthcare services is likely to persist. The article discusses three AI-linked healthcare and biotech companies that offer both growth potential and dividends: Merck & Company, Amgen, and Johnson & Johnson.

Merck & Company, a biopharma company, has seen a 42% year-to-date performance, outperforming the S&P 500 by 29 percentage points. The company pays a dividend yield of approximately 2.17% and has a Moderate Buy rating from 28 analysts. Amgen, another biotech firm, has a 34% year-to-date performance, outpacing the market by 21 percentage points and paying a 2.3% dividend yield.

It has a Moderate Buy rating from 35 analysts. Johnson & Johnson, a well-known player in the healthcare industry, has a 28% year-to-date performance, outperforming the S&P 500 by 15 percentage points. The company offers a 2% dividend yield and a Moderate Buy rating from 24 analysts. All three companies have strong AI initiatives and represent a combination of income and growth potential for investors.