Intuitive Surgical, Inc. (ISRG): A Bull Case Theory

We came across a bullish thesis on Intuitive Surgical, Inc. (ISRG) on PitchStack Investing’s Substack. In this article, we will summarize the bulls’ thesis on ISRG. Intuitive Surgical, Inc. (ISRG)’s share was trading at $513 as of 12^th June. ISRG’s trailing and forward P/E were 76.49 and 67.11 respectively according to Yahoo Finance.

Intuitive Surgical stands as a dominant force in the field of robotic-assisted surgery, leveraging decades of innovation to maintain a commanding 90% market share in this high-growth sector.

The company continues to enhance minimally invasive care through its advanced technologies, most notably the Ion system, which delivers an 83% diagnostic yield for small lung nodules—far surpassing traditional manual methods. This superior performance not only positions Ion for broader adoption in pulmonary care but also adds a meaningful growth vector to Intuitive’s already robust platform.

The widespread acceptance of the company’s systems across hospitals worldwide reinforces its competitive moat, making it exceedingly difficult for new entrants to gain traction. Investors looking for sustained long-term growth may find the current setup compelling: analysts project a 115% stock price increase over the next five years, implying a 17% internal rate of return.

This growth potential is grounded in a combination of expanding procedure volumes, continuous product innovation, and a razor-and-blade business model that ensures recurring revenue through instruments and service. Intuitive’s entrenched position in hospitals, proven clinical efficacy, and ongoing investments in next-generation systems provide a strong foundation for continued leadership in surgical robotics.

As healthcare systems globally prioritize better outcomes and operational efficiency, Intuitive Surgical is uniquely positioned to benefit from this secular shift, offering investors a rare blend of resilience, technological leadership, and upside.

Previously, we covered a bullish thesis on ISRG by The Antifragile Investor in January 2025, focusing on its da Vinci-driven moat, IP edge, and recurring revenue. PitchStack Investing shares this view but emphasizes growth—citing Ion’s clinical advantage, 90% market share, and a 17% IRR forecast. Both see a leader, but one stresses defensibility, the other, accelerating upside.

Intuitive Surgical, Inc. (ISRG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Intuitive Surgical, Inc. (ISRG) at the end of the first quarter which was 95 in the previous quarter. While we acknowledge the risk and potential of ISRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.