1. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Billionaires: 18
Dollar Value of Billionaire Holdings: $5,019,379,171
Intuitive Surgical, Inc. (NASDAQ:ISRG) leads in robotic-assisted surgery with its da Vinci system, improving precision in complex procedures. The company earns revenue through system sales, along with ongoing income from instruments, accessories, and service contracts. Its “razor-and-blades” model generates steady income from recurring sales after the initial system sale.
Significant growth was also shown in Intuitive Surgical, Inc. (NASDAQ:ISRG) fiscal Q4 2024 statistics, with Da Vinci treatments rising by 18%. Additionally, overall revenue surpassed the forecast of $2.24 billion, rising by 25% to $2.41 billion. The market for surgical robotics is dominated by Intuitive Surgical, Inc. (NASDAQ:ISRG). Grand View Research projects that until 2030, the surgical robots industry will expand at a compound annual growth rate of 9.5%. By then, the global market is expected to be valued at approximately $7.4 billion, up from $4.3 billion the previous year. The market has room to expand in the upcoming years and decades thanks to the quick development of medical technology.
The management of Intuitive Surgical, Inc. (NASDAQ:ISRG) has voiced optimism for 2025, projecting a 13%–16% increase in da Vinci procedures globally. As one of the best biotech stocks, this optimism follows the Food and Drug Administration’s approval of the company’s latest-generation da Vinci 5, a sophisticated system that blends AI and machine learning with a more digital interface.
Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 investor letter:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to excitement about the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We think the company has a long runway for growth as more procedures are performed with the company’s equipment.”
Overall, Intuitive Surgical, Inc. (NASDAQ:ISRG) ranks first among the 15 best biotech stocks to buy according to billionaires. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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