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Butterfly Network’s AI breakthrough sends its stock soaring after years of decline

A struggling medtech pioneer roars back to life. How Butterfly Network’s AI innovation turned skepticism into a **stock market today** rally—and what’s next for investors.

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2 min read
In this picture I can see a paper, there are words, numbers and there are images of different types...
In this picture I can see a paper, there are words, numbers and there are images of different types of butterflies on the paper.

Butterfly Network’s AI breakthrough sends its stock soaring after years of decline

Butterfly Network, a medical imaging company based in Burlington, Massachusetts, has made waves with its handheld ultrasound technology. Unlike traditional systems, its devices use semiconductors instead of lead-based stock market today crystals. The company’s innovations have placed it among key players in the growing point-of-care ultrasound market.

Since going public, however, its stock market has struggled—until a recent surge following the announcement of new AI technology.

Butterfly Network designs handheld ultrasound devices that replace multiple probes with a single, tunable unit. Its technology covers a wide frequency range, allowing full-body scans without switching equipment. The company claims this approach will eventually surpass the image quality of traditional piezoelectric systems, with that milestone targeted for late 2026.

The firm has sold 150,000 devices worldwide since launching. Its product line includes two whole-body and two specialised probes, paired with icloud-based software and services. These tools are now used in over 100 countries, generating revenue from hardware, subscriptions, and professional support. Hardware sales alone make up roughly two-thirds of its income.

Despite its progress, Butterfly Network faces stiff competition. Rivals like DRSONO and SIFULTRAS gained traction in 2025, often listed as alternatives to Butterfly’s flagship iQ3 model. The broader ultrasound market, worth around $10 billion in 2024, remains dominated by giants such as GE HealthCare, Siemens, and Philips.

Investor confidence in Butterfly Network has been shaky. Since its public debut, shares plummeted by 88%, hurt by its niche market size and perceptions of lower performance compared to cart-based machines. That trend reversed sharply after the company unveiled Compass AI on November 17, 2025—its share price has since doubled.

Butterfly Network continues to expand its footprint in portable ultrasound technology. With 150,000 devices in circulation and plans to improve image quality by 2026, the company is pushing boundaries in medical imaging. The recent stock market today rally suggests growing optimism around its AI-driven future, though competition and market challenges remain.

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