NEW YORK (TheStreet) -- Shares of Microsoft (MSFT - Get Report) were increasing in mid-morning trading on Tuesday as the technology giant is creating artificial intelligence (AI) technology that can help with cancer treatment.
The Redmond WA-based company's project, called Hanover, processes medical information and helps predict which drugs and which combinations are most effective, Bloomberg reports.
Hanover will focus on finding combinations that treat acute myeloid leukemia, a type of cancer that's recently experienced stagnant research growth.
Targeted therapies have seen some success among cancer patients, but researchers note that a combination of targeted drugs could keep cancer from coming back, according to Bloomberg. Hanover could help identify what drug combinations are the most effective.
Hanover is based on machine learning technology, which several other competitors like IBM's (IBM) Watson Oncology and Alphabet's (GOOGL) Google unit are also harnessing. The technology enables computers to analyze data for insights without being programmed by humans.
One of the biggest setbacks for machine learning technology is confirming that health insurance companies cover the wide range of drug combinations, Bloomberg notes.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Microsoft as a Buy with a ratings score of B+. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, notable return on equity, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, the team feels they are unlikely to have a significant impact on results.You can view the full analysis from the report here: MSFT