Merck, Amgen, and Johnson & Johnson are AI-linked healthcare stocks that beat the S&P 500 this year.
Merck leads with a 42% gain, and Amgen and JNJ rose 34% and 28%.
All pay dividends and hold Moderate Buy ratings.
What happened
Merck & Company, Amgen, and Johnson & Johnson are highlighted as AI-linked healthcare stocks that have outperformed the S&P 500 this year. Merck stock is up 42% year to date, beating the market by about 29 percentage points. Amgen is up 34%, beating the market by around 21 points, and Johnson & Johnson is up 28%, outperforming by 15 points.
Why it matters
These companies combine AI-driven drug discovery and medical technology with steady dividends, offering income and growth outside the usual AI trade. Healthcare demand is seen as permanent, making these businesses durable. Merck partners with Google Cloud for AI, Amgen uses NVIDIA tech to predict protein properties, and Johnson & Johnson runs the Polyphonic AI Fund for Surgery.
What to watch
Each stock pays a forward annual dividend and holds a Moderate Buy rating from analysts. Merck pays $3.40 per share (about 2.17% yield), Amgen pays $10.08 per share (about 2.3%), and Johnson & Johnson pays $5.36 per share (about 2%). Amgen is trading close to its high target price, while Merck and JNJ have potential upside.
Ask the AI about this article →
The article uses Barchart's stock screener to find biotech and healthcare companies that combine AI exposure with dividends and analyst support. The screen required stocks to beat the S&P 500 by at least 1% year to date, have a forward dividend yield of 1% or higher, at least 12 analysts covering them, and a Moderate to Strong Buy rating. Five companies matched, but the piece focuses on the top three by outperformance.
Merck's AI push includes a Google Cloud partnership for research and operations, while Amgen uses NVIDIA technology to predict protein properties for faster drug discovery. Johnson & Johnson's AI fund targets surgical workflow optimization. These initiatives tie the companies to practical AI applications in healthcare, from drug pipelines to operating rooms.
All three stocks are rated Moderate Buy by analysts, with Amgen trading near its high target price, suggesting limited upside. Merck and JNJ retain modest upside per their targets. The article positions these companies as durable investments because healthcare demand is unlikely to disappear, offering a mix of innovation and income for investors seeking AI exposure outside tech giants.
For example, today's edition would include:
AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.
Free · takes 30 seconds · unsubscribe anytimeWhat is AIToday? →
Ask AI anything about this article. Q&As are published on this page for other readers too.
Marvell Technology reported record fiscal Q2 2027 revenue of $2.739 billion, up 37% year over year, and raised…
Mastercard CEO Michael Miebach discussed the company's new Agent Pay protocol and its recent acquisition of BV…
Visa reported strong fiscal Q3 2026 results, expanded its open-source AI cybersecurity framework (Visa Vulnera…
Nvidia's earnings on Wednesday shifted the narrative, showing its advantage extends beyond GPUs to the systems…
NVIDIA reported $96.2 billion in revenue for fiscal Q2 2027, up 106% year over year, with Data Center revenue…
Intel expanded its partnership with Kasm Technologies to support compliant, local AI workloads on Intel Xeon 6…
