Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. A caller asked which of the three metrics is most important for the company: procedure growth, system placements, or hospital utilization. Cramer replied:
It’s hospital utilization, and what gets me down here is that the stock, the earnings are good, but the multiple is too high. And when I say that, you have to go back to How to Make Money in Any Market. My book spends a lot of time about the idea that, you know what, if the multiple’s too high, it doesn’t matter what the sales are and the earnings [are], it’s just not going to be able to go higher. And that’s going on with Intuitive. It’s just gotten too expensive per share.
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
Intuitive Surgical, Inc. (NASDAQ:ISRG) designs and manufactures robotic systems and instruments that enable minimally invasive surgical and diagnostic procedures. Polen Capital Management Llc stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Polen Focus Growth Strategy’s Q4 2025 investor letter:
In Q4 2025, we initiated a new position in Intuitive Surgical, Inc. (NASDAQ:ISRG) and sold our positions in Netflix and Workday. We initiated a 2.25% position in Intuitive Surgical who maintain a de facto monopoly in soft tissue robotic surgery globally. They have become the standard of care in many surgical modalities while there are many more open and laparoscopic surgeries that can be converted to robotic over time. The barriers to entering their market are large based on decades of proven efficacy and safety, as well as the fact most surgeons are trained on the company’s Da Vinci robots either in medical school or on the job, and they continue to innovate and distance themselves from potential entrants. The company recently fully launched its next generation platform that should lead to accelerating procedure growth and revenue growth for years. Current results show this acceleration, and we see clear business momentum and a reasonable valuation considering this is an accelerating monopoly.
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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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