In this article, we break down the 5 Best Cheap AI Medicine Stocks to Buy Now. For investors looking for the complete list, you can explore our full report on the 10 Best Cheap AI Medicine Stocks to Buy Now.
5. Butterfly Network Inc. (NYSE:BFLY)
Butterfly Network, Inc. (NYSE: BFLY) takes fifth place as one of the most unusual AI healthcare stocks in the ranking. The company is attempting to replace bulky and expensive traditional ultrasound equipment with portable semiconductor-based imaging systems connected to cloud software and artificial intelligence.
Its handheld ultrasound devices can potentially extend medical imaging beyond specialized radiology departments. Doctors, nurses, emergency responders and medical students can use portable imaging at the point of care. This could be particularly valuable in smaller hospitals, ambulances, rural clinics and developing markets where full-sized imaging systems are difficult to obtain.
The company is also expanding its software and licensing operations. Compass AI is designed to support point-of-care ultrasound programs by helping healthcare institutions manage clinical workflows, quality, documentation and device utilization. The broader Embedded strategy allows partners to incorporate the company’s ultrasound technology into other products.
Second-quarter 2026 revenue increased 39% to $32.6 million, while gross margin expanded to approximately 71%. Software and services revenue reached $16.9 million and represented more than half of total quarterly revenue. This shift matters because recurring software and licensing income can carry more attractive margins than hardware sales. The company ended June with approximately $124.7 million in cash and equivalents. The quarterly filing detailed the revenue mix, losses and available cash.
At approximately $7.36 per share, the stock remains accessible, but its market capitalization approaches $2 billion. That valuation requires substantial future growth. The company also continues to lose money, with a second-quarter net loss of approximately $12.9 million.
The investment thesis depends on portable ultrasound becoming a standard medical tool and software revenue continuing to expand. If the company can convert its technological lead into widespread hospital adoption, the long-term opportunity could be considerable. Failure to achieve profitability would leave shareholders vulnerable to additional financing and dilution.
