What Makes Intuitive Surgical (ISRG) an Investment Bet?

Sands Capital, an investment management company, released its “Sands Capital Global Growth Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies across the globe. Global equities fell in the first quarter, as per the MSCI ACWI. The strategy underperformed the benchmark amid the weakness. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Global Growth Fund highlighted stocks such as Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets products that help physicians and healthcare providers improve the quality of and access to minimally invasive care. The one-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was 4.02%, and its shares gained 33.63% of their value over the last 52 weeks. On June 5, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $558.06 per share with a market capitalization of $200.02 billion.

Sands Capital Global Growth Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2025 investor letter:

“Intuitive Surgical, Inc. (NASDAQ:ISRG) is the leader in robotic surgical systems. The company’s da Vinci Robotic Surgical Systems enable surgeons to perform minimally invasive surgeries with a greater level of precision than traditional surgery. Intuitive Surgical holds a monopoly position within its industry, and we believe its position is well protected by its leading-edge technology and broad patent portfolio, as well as the high costs of switching systems. Going forward, we expect the company’s competitive position to transition from being the monopoly provider of robotics—a niche surgical category—to the dominant provider of robotics in a broader array of surgical procedures. Given the company’s technological leadership in the large and growing robotic surgical market, we expect the company will continue to grow at above-average rates over our investment horizon.”

Intuitive Surgical, Inc. (ISRG): Among Billionaire Ken Fisher’s Healthcare Stock Picks with Massive Upside Potential

A medical team performing minimally invasive surgery with a da Vinci Surgical System.

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the first quarter, which was 95 in the previous quarter. In the first quarter of 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported revenue of $2.25 billion, a 19% increase over last year. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared Baron Health Care Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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