That may not seem to fit the pattern of investing in tech operators. But Nvidia CEO Jensen Huang sees an important intersection between the healthcare field and AI. <\/p>\n
At a January conference, Nvidia announced it was forming an AI co-innovation lab with Eli Lilly. Over five years, both companies plan to jointly invest up to $1 billion in the lab’s infrastructure and research. <\/p>\n For the collaboration, Eli Lilly will bring its medical expertise, while Nvidia will contribute its AI know-how to expedite drug research. “AI is transforming every industry, and its most profound impact will be in life sciences,” Huang said in Nvidia’s press release. <\/p>\n With that as a reference point, there’s a natural fit for Nvidia to invest in Generate Biomedicines. <\/p>\n Combining AI and machine learning with healthcare <\/p>\n Generate Biomedicines uses AI and machine learning<\/a> to accelerate drug development and deliver novel medical solutions. <\/p>\n For instance, drug candidate GB-0895 is designed to help treat asthma and could reduce treatment frequency from once a month to just twice a year. Phase 3 trials for GB-0895 as a treatment for severe asthma are currently underway. <\/p>\n As Nvidia looks to show its chips can be used for more than just powering chatbots, healthcare is a natural fit. Its hardware could be involved in everything from processing clinical trial data to drug discovery to robotic-assisted surgery. <\/p>\n Should you follow Nvidia’s investing lead? <\/p>\n Nvidia’s May 13F filing showed that as of the end of the first quarter, it owned just over 833,000 shares of Generate Biomedicines, a stake valued at $10.4 million. For a company with a $4.9 trillion market cap, that may not seem like a significant investment. To be fair, it’s not, but it’s still a smart investment by Nvidia. <\/p>\n There’s a lot of promise in using AI in the healthcare sector, but there are also plenty of risks, along with even more unknowns. With a relatively small investment, however, Nvidia can give Generate Biomedicines more financial wiggle room to commercialize its drug pipeline. <\/p>\n If Generate Biomedicines can commercialize its drugs, even though Nvidia’s stake is small, it would be a financial win for Huang’s company. But even more importantly, it would be a proof point of how AI powered by Nvidia’s chips is helping uncover medicines that go on to be commercialized. <\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in Nvidia, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $395,679!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 929% \u2014 a market-crushing outperformance compared to 211% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 11, 2026. <\/p>\n Jack Delaney<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly, Intel, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. AI’s role in the future of healthcare <\/p>\n