10 Worst Small Cap AI Stocks To Buy According to Short Sellers

4. Procept Biorobotics Corp. (NASDAQ:PRCT)

Short % of Shares Outstanding As of August 30: 11.59%

Market Capitalization as of September 14: $4.31 billion

Number of Hedge Fund Holders: 21

Procept Biorobotics Corp. (NASDAQ:PRCT) develops, manufactures, and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for minimally invasive urologic surgery, initially focused on treating benign prostatic hyperplasia. Its robotic platform utilizes advanced AI algorithms to enhance precision, minimize tissue damage, and improve surgical outcomes.

Revenue growth in Q2 2024 was driven by strong US system sales, increased utilization of existing systems, and record international revenues. The company ended this quarter with 400 US systems installed, a 72% increase year-over-year. The US monthly utilization grew by 15%. Overall, Q2 ended with a 61.17% revenue improvement year-over-year.

Despite recent challenges, the market for hospital capital investments is improving. Procept Biorobotics Corp. (NASDAQ:PRCT) is talking to hospital CFOs, who are now more open to investing in its robotic system. Growing patient demand and motivated urologists drive hospitals to prioritize this technology to remain competitive. The company’s disruptive technology can help hospitals build strong BPH practices without relying on specialists.

The prostate cancer expansion gained attention at the AUA (American Urological Association), with growing interest in Aquablation therapy. The company is enrolling patients in PRCT002, its first IDE study for prostate cancer. It has received positive coverage policies from Blue Cross Blue Shield of Arkansas and Louisiana, covering roughly 1.5 million lives.

Additionally, procedure growth is driven by new surgeons performing procedures and high surgeon retention rates (exceeding 90%). This allows the company’s team to focus on training new surgeons. The company’s strategic initiatives, including new product development, partnerships, and market expansion, are expected to strengthen its market position.

NCG Small Cap Strategy stated the following regarding PROCEPT BioRobotics Corporation (NASDAQ:PRCT) in its Q2 2024 investor letter:

“PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is a medical device company that has developed and is on the market with a robotic therapy for the treatment of BPH (benign prostatic hyperplasia). We believe PRCT has significant growth opportunity by not only taking share in the existing BPH market but by expanding the number of BPH patients treated each year and expanding into new indications, such as prostate cancer treatment, over time.”