The healthcare sector is experiencing a significant rally, with the XLV ETF up 1.80%, driven by a continued rotation of institutional money into the sector. A Goldman Sachs report today noted that hedge fund bullish bets on U.S. healthcare stocks are approaching a five-year high, citing artificial intelligence breakthroughs and favorable financing as key drivers. This positive sentiment is further bolstered by recent M&A activity, such as Eli Lilly's $2.8 billion acquisition of AtaiBeckley, and corporate initiatives like Healthcare Triangle's new AI-focused subsidiary, Purpose Health, underscoring the transformative potential of AI in the industry.