UBS’ Top Tech Based Disruptive Stocks For 2030: Top 29 Stocks

12. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders In Q2 2024: 67

Intuitive Surgical, Inc. (NASDAQ:ISRG) is the second medical robotics company on our list. UBS expects it to disrupt the healthcare industry through technology, and the premise behind this should be self evident. Intuitive Surgical, Inc. (NASDAQ:ISRG) bread and butter product is its Da Vinci robot lineup. The product has enabled the firm to capture a whopping 57% of the global market to provide it with key brand recognition and competitive advantages. Since medical robots are expensive products, healthcare providers typically prefer staying with one provider due to training costs and error risk. The specialty nature of its product also enables Intuitive Surgical, Inc. (NASDAQ:ISRG) to benefit from recurring revenue in the form of maintenance and after sales service. Its financial health depends on the broader health of the medical industry and spending, and since it’s reliant on one product lineup, Intuitive Surgical, Inc. (NASDAQ:ISRG) has to continually innovate or risk competition. The firm has made some moves on this front this year as it offers 150 upgrades and 10,000 times the computing power over predecessors with its Da Vinci V robot.

Here’s what Intuitive Surgical, Inc. (NASDAQ:ISRG)’s management shared about the DaVinci robot during the Q2 2024 earnings call:

“Just starting with some of the feedback that we’ve discussed before, you look at what customers are immediately appreciating and some of the things you would expect around ergonomics, increases in precision and vision, the head in UI, onscreen graphics and other things. And so taken together, each one of those features are leading to some efficiency gains in particular in sort of console time. And that has been kind of noticed across the customer base. And I think that’s where we’re starting — we’re hearing a little bit about what can that mean in terms of adding a procedure a day, increasing utilization of the system. And so that’s what both our surgeon customers and our executive customers are noticing as a result of their investment in da Vinci 5.

You know, some of the other features, Case Insights, Force Feedback, we’re excited to work with customers and we know that’s going to take time to develop and really quantify some of those impacts. In terms of pushback, today what we are seeing is a little bit what Jamie talked about. We are starting, customers will have to evaluate the value of da Vinci 5. We have these early adopters that are excited about what it can be. And as we move in through our measured launch, we will continue to have to underscore, and reinforce the value that it brings, and communicate that to executives and their teams.”