Is Intuitive Surgical, Inc. (ISRG) A Good Stock To Buy Now?

Is ISRG a good stock to buy? We came across a bullish thesis on Intuitive Surgical, Inc. on MTC’s Substack. In this article, we will summarize the bulls’ thesis on ISRG. Intuitive Surgical, Inc.’s share was trading at $483.46 as of March 16th. ISRG’s trailing and forward P/E were 59.99 and 47.39 respectively according to Yahoo Finance.

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Intuitive Surgical, Inc. (ISRG) stands as a defining force in modern medical technology, having pioneered and scaled robotic surgery into a dominant global platform with approximately 70% market share, a 12,000-system installed base, and a business model generating nearly 85% recurring revenue. The company’s leadership is anchored in its da Vinci ecosystem, including the recently launched da Vinci 5, which delivers step-change improvements in computing power and introduces force feedback technology, alongside established systems like Xi, X, and SP that serve a broad range of surgical specialties.

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Complementing this portfolio is the Ion platform, expanding Intuitive Surgical’s reach into minimally invasive diagnostics, particularly lung cancer detection. Its razor-and-blade model drives durable economics, with high-margin instruments and accessories contributing the majority of revenue and creating long-term, non-discretionary demand tied to procedure volumes, which exceeded 3 million annually.

The company operates in a robotic surgery market expected to grow from roughly $16 billion in 2026 to over $50 billion by 2035, supported by increasing adoption across general surgery and international markets, where penetration remains relatively low. While Intuitive Surgical has already achieved meaningful penetration in urology and gynecology, significant whitespace remains, particularly in general surgery, representing a substantial volume expansion opportunity.

Its competitive position is reinforced by high switching costs, deep surgeon training integration, a vast patent portfolio, and a powerful data moat built on millions of procedures, enabling continuous innovation and AI-driven advancements. Although competition from players like Medtronic and Johnson & Johnson is intensifying, Intuitive Surgical’s entrenched ecosystem, scale advantages, and proven clinical outcomes position it to sustain leadership and capture a disproportionate share of this expanding market, offering a compelling long-term growth and rerating opportunity.

Previously, we covered a bullish thesis on Intuitive Surgical, Inc. (ISRG) by Kontra Investment Xchange in December 2024, which highlighted its leadership in robotic surgery, rising procedure volumes, and expanding installed base. ISRG’s stock price has depreciated by approximately 10.80% since our coverage, driven by weaker-than-expected 2026 procedure growth guidance and margin pressure, despite strong underlying demand. MTC shares a similar view but emphasizes on its dominant market share, recurring revenue model, and expanding platform ecosystem.

Intuitive Surgical, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 109 hedge fund portfolios held ISRG at the end of the fourth quarter which was 99 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 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.

Disclosure: None.