We recently published a list of the 10 Best Robotics Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Intuitive Surgical, Inc. (NASDAQ:ISRG) stands against the other robotics stocks held by billionaires.
Robotics Market Outlook
The robotics industry has grown modestly over the past few years. Robotic companies are growing faster than ever, driven by advancements in technology since the emergence of AI. Especially, humanoid robots are rapidly growing in the global market, driven by AI. According to Goldman Sachs’ research, the total addressable market for humanoid robots is projected to cross $38 billion by 2035, a massive upgrade from its previous forecast of $6 billion in 2023.
Read More: 10 Cheap Robotics Stocks To Invest In Now
Morgan Stanley expects the humanoid robot units to reach 40,000 by 2030 and cross 63 million by 2050. Citigroup is even more bullish, anticipating a $7 trillion humanoid robot market by 2050, with 1.19 billion humanoid robots in operation. Adam Jonas from Morgan Stanley expects humanoid robots to be a multi-decade, trillion-dollar opportunity as the adoption could accelerate faster for autonomous vehicles.
In 2023, the new World Robotics report noted around 4.28 million units operating in factories globally, growing by 10% compared to 2022. Annual installations surpassed half a million units for the third consecutive year. Asia remains the hot region for robots, with 70% of all newly deployed robots in 2023 installed in Asia. China, Japan, South Korea, and India are some of the largest robotics markets in the world. China leads the market, recording 276,288 industrial robots installed in 2023, representing 51% of the global installations. The U.S. has the largest robotics market in the region, accounting for 68% of installations in the Americas in 2023.
The U.S. stock market has been under pressure due to tariffs as the broader market has plunged over 4.50% year-to-date. At the same time, Global X Robotics & Artificial Intelligence ETF (BOTZ) and Robo Global Robotics and Automation Index ETF (ROBO), which returned over 11% in 2024, have dropped nearly 10% and 7% year-to-date, respectively. Despite the market facing political headwinds, robotics stocks hold great promise, considering the rising demand for humanoids and automation systems.
A medical technician using surgical robotics to perform minimally-invasive urologic surgery in an operating room.
Our Methodology
To compile our list of the best robotics stocks to buy according to billionaires, we looked for the robotics and automation companies widely held by billionaires. Data for the billionaire holders for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 10 best robotics stocks to buy were ranked in ascending order based on the billionaire investors holding stakes in them. We have also mentioned the number of hedge funds holding each stock as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Intuitive Surgical, Inc. (NASDAQ:ISRG)
No. of Billionaire Investors: 18
No. of Hedge Fund Holders: 95
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a pioneer in robotic-assisted surgery, famously known for its da Vinci Surgical System. The company’s advanced robotics assist minimally invasive procedures, improving surgical precision and patient outcomes. The company has a strong global presence, with its technology widely adopted in hospitals and surgical centers.
Over the years, Intuitive Surgical, Inc. (NASDAQ:ISRG) has expanded beyond the da Vinci system. In 2019, the company launched Ion Robotic Bronchoscopy, which is used in oncology to conduct minimally invasive lung biopsies. In 2024, Ion’s installed base grew by 51% to more than 800 systems. Intuitive Surgical has also released Intuitive Hub, a technology platform that automatically records videos for review and collaboration during surgeries.
On March 18, Baird analyst David Rescott downgraded the price target of ISRG shares from $707 to $600, maintaining an Outperform rating on the shares. Rescott lowered the price target following the change in the company’s model and believes the tariff impact is already priced into the shares. The analyst also notes that the company has several levers to neutralize the headwinds. On the other side, Wells Fargo analyst Larry Biegelsen reiterated a Buy rating on the stock with a price target of $687. Biegelsen was optimistic based on Intuitive Surgical’s recent FDA 510(k) clearance for its SP stapler, which is expected to boost adoption of the SP platform in the U.S. This approval is important for thoracic and colorectal procedures, where Intuitive Surgical projects increased commercial activity.
Overall ISRG ranks 2nd on our list of the Robotics stocks to buy according to billionaires. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
