DexCom Inc. DXCM recently announced the launch of a proprietary Generative AI (GenAI) platform, making Dexcom the first Continuous Glucose Monitoring (CGM) manufacturer to integrate GenAI into glucose biosensing technology.
In addition to offering practical insights to support the improvement of metabolic health, the new Dexcom GenAI platform is likely to examine trends in individual health data to uncover a clear correlation between lifestyle decisions and blood glucose levels. Dexcom leveraged Google Cloud’s cutting-edge Vertex AI platform and Gemini models as the foundation to build its proprietary GenAI platform.
Stelo, the first over-the-counter glucose biosensor cleared by the FDA in the United States, is the first Dexcom product to use GenAI-enabled technology to produce weekly insights. This week, consumers began to reap the benefits of Stelo's Weekly Insights feature upgrade.
GenAI-powered messaging complements Stelo's current Weekly Insights by providing users with additional contextualized sleep, exercise, nutrition advice, recommendations, and education within the Stelo app. Dexcom's proprietary platform establishes a foundation for future GenAI advancements across its product portfolio, empowering millions of users to take control of their health.
Likely Trend of DXCM Stock Following the News
Following the announcement, shares of the company moved north 1.8% to $77.80 on yesterday’s closing. In the year-to-date period, DXCM shares have lost 37.3% against the industry’s rise of 5.4%. The S&P 500 has gained 28.3% in the same time frame.
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Likely Benefits of the Proprietary Gen AI Platform to DXCM
Dexcom can benefit greatly from incorporating Gen AI into glucose biosensing, especially in improving the accuracy and customization of diabetes treatment. The platform can evaluate enormous volumes of glucose data in real-time by utilizing cutting-edge artificial intelligence, spotting patterns and trends that were previously hard to spot.
Users can make well-informed decisions regarding their food, activity, and medicine thanks to the extremely accurate glucose readings and projections they receive. Furthermore, Gen AI can tailor alerts and suggestions according to each person's glucose sensitivity, improving blood sugar regulation and lowering the chance of problems.
Better accessibility and user experience are two other significant advantages of applying Gen AI to glucose biosensing. The platform facilitates successful collaboration between users, caregivers, and healthcare providers by distilling complex glucose data into easily comprehensible insights.
Additionally, it facilitates continuous learning, which allows the system to provide more intelligent and trustworthy advise over time by adjusting to each user's unique glucose patterns. Moreover, this technology can expedite Dexcom's product development, facilitating quicker innovation and the production of glucose monitoring devices that are more effective. Through the application of Gen AI, Dexcom is establishing a new benchmark in treating diabetes by providing consumers with more intelligent, quick, and user-friendly tools.
DXCM’s Recent Product Updates & Partnership
Dexcom has been at the forefront of innovation in diabetes management, with several recent updates showcasing its commitment to improving glucose monitoring. In August 2024, Dexcom launched the Dexcom Stelo, an over-the-counter CGM specifically designed for individuals with Type 2 diabetes not requiring insulin and those managing prediabetes.
Stelo offers real-time glucose tracking via a smartphone app, eliminating the need for a prescription and making advanced glucose monitoring more accessible. Priced at $99 for a pack of two 15-day sensors, Stelo aims to bridge the gap in diabetes care for underserved populations, reflecting Dexcom’s focus on affordability and user convenience.
In addition to product launches, Dexcom continues to refine its existing offerings. A recent update to the Dexcom G6 app introduced an iOS widget, allowing users to view their glucose readings directly from their home screens without opening the app. This small yet impactful feature enhances convenience, ensuring critical health data is always within reach.
Dexcom’s focus on iterative improvements demonstrates its commitment to meeting user needs through continuous innovation. Collectively, these advancements position Dexcom as a leader in diabetes care, with a clear focus on accessibility, user engagement, and cutting-edge technology.
In November, Dexcom partnered with Oura, integrating its CGM devices with the Oura Smart Ring, a wearable health tracker. This collaboration enables users to monitor their glucose levels alongside other health metrics like sleep and activity, providing a holistic view of their well-being. The integration is expected to enhance the user experience by offering actionable insights into how lifestyle factors impact glucose levels, helping users make better-informed decisions about their health. This partnership reflects Dexcom’s push toward creating interconnected healthcare ecosystems that leverage wearable technology for comprehensive health management.
Favorable Industry Prospects for DXCM
Per a report by Grand View Research, the global generative AI in the healthcare market was valued at $1.28 billion in 2022 and is projected to witness a CAGR of 36.7% from 2023 to 2030, reaching approximately $14.77 billion by 2030.
This growth is driven by advancements in deep learning and natural language processing, increasing demand for personalized treatment, and rising healthcare data volumes.
DXCM’s Zacks Rank & Stocks to Consider
DXCM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and AxoGen AXGN.
Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 49.4% compared with the industry’s 6.7% growth year to date.
Accuray, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.
ARAY’s shares have lost 32.2% against the industry’s 6.7% growth year to date.
AxoGen, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 252% for 2025. It delivered a trailing four-quarter average earnings surprise of 91.11%.
AXGN’s shares have risen 111% year to date compared with the industry’s 6.7% growth.
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