We recently published a list of Top 10 AI Stocks That Are Being Monitored By Wall Street. In this article, we are going to take a look at where Intuitive Surgical, Inc. (NASDAQ:ISRG) stands against other top AI stocks that are being monitored by Wall Street.
As the global tech sector was catching up to the disruption caused by DeepSeek’s r1 AI model, Chinese e-commerce giant Alibaba announced its brand new Qwen 2.5 AI model on the first day of the Lunar New Year. The Qwen 2.5 is pre-trained on large-scale multilingual and multimodal data and rivals DeepSeek’s AI model.
“Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” the group’s cloud unit on its official WeChat account.
The latest Chinese AI model release also sent US firms scrambling to innovate and stay ahead of the competition. OpenAI CEO Sam Altman recently teased several “exciting new features” coming to ChatGPT and a new ChatGPT Gov tool to bolster ties with the US government.
The rise of advanced, cost-effective Chinese AI models has introduced volatility in US stocks as analysts rampantly rerate companies and shift outlooks based on the rapidly evolving tech landscape.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A medical team performing minimally invasive surgery with a da Vinci Surgical System.
Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 82
Intuitive Surgical, Inc. (NASDAQ:ISRG) designs and builds cutting-edge robotic-assisted surgical systems. The company uses AI to refine its robotic systems, including the da Vinci Surgical System, to help surgeons carry out minimally invasive surgeries with higher precision for improved patient outcomes. Intuitive Surgical (NASDAQ:ISRG) also uses AI in real time to help clinicians predict patients’ risk of developing surgical complications with higher accuracy.
On January 29th, Wells Fargo analyst Larry Biegelsen noted Intuitive Surgical, Inc.’s (NASDAQ:ISRG) lawsuit win yesterday versus emerging competitor Surgical Instrument Service, which might translate to a win for the company in the class action lawsuit, given that the cases are similar and are being heard by the same judge. Surgical Instrument Service accused Intuitive Surgical, Inc. (NASDAQ:ISRG) of breaching antitrust law by illegally preventing its customers from purchasing the company’s “repaired” EndoWrists. The analysts believe the case is vital because it is a preview of the substance in the bigger class action case, considering that the case moves forward. Based on yesterday’s positive outcome, the brokerage retained its “Overweight” rating for Intuitive Surgical, Inc. (NASDAQ:ISRG) with a $687 stock price target.
Overall, ISRG ranks 5th on our list of top AI stocks that are being monitored by Wall Street. While we acknowledge the potential of ISRG as an investment, 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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Disclosure: None. This article is originally published at Insider Monkey.
