CNBC's Jim Cramer shared on Tuesday what he learned from his two days at JPMorgan's healthcare conference. He marveled at the countless uses of generative artificial intelligence in healthcare, but concluded that Wall Street is more concerned with using this new technology for advertising purposes.
Cramer told investors that “Magnificent Seven” members Amazon and Alphabet posted gains on Tuesday after some analysts praised the companies' advertising skills and use of generative AI.
“Could targeting the right consumer really be more important than saving their life?” Cramer asked. “No of course not. But investing is rarely about what's important in a human sense, but rather about making money. And right now, analyzing data more efficiently to target advertising is more important than analyzing data to figure out how to get people to live longer, healthier lives.
But Cramer said he believes there is an opportunity to create a fruitful “interface between technology and healthcare,” pointing to a note from JPMorgan that suggests Nvidia's healthcare business is already worth more than $1 billion . The company's analysts wrote that the tech giant's work will be central to expanding “computer-aided drug discovery.”
Cramer praised the use of generative AI by several pharmaceutical companies. He said he likes Amgen's partnership with Nvidia because the company uses its supercomputers in conjunction with genomic data to advance drug discovery. Roche's CEO told Cramer that AI is helping the company accelerate drug development cycles and reduce their costs. He added that Cencora uses AI to keep track of inventory, while Medtronic uses it to help doctors with colonoscopies.
However, Cramer pointed out that in the eyes of many investors, computer science takes precedence over vital health technology.
“Yes, an Abbott Labs pacemaker is an incredible, life-saving device with electrical technology,” Cramer said. “But the computer science behind an Amazon or YouTube ad is worth a lot more when it comes to the stock market, at least for now.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Amazon, Alphabet and Nvidia.