We recently published a list of 10 best medical device stocks to buy according to hedge funds. In this article, we will introduce the intuitive Surgical, Inc. We'll see where (NASDAQ: ISRG) plays against other best medical device stocks to buy now.
According to a report by Mordor Intelligence, the medical device market size was $681.57 billion as of 2025. The large industry is expected to grow at a combined annual growth rate of 6.99% between 2025 and 2030, reaching a market size of $95.559 billion. By the end of the forecast period.
This significant growth can be attributed to a variety of megatrends in the healthcare sector. The aging population around the world is one of the major factors affecting the industry. This is especially true in high-income countries such as the United States. This means that as of 2023, approximately 17% of the country's population is over 65 years old. This has led to an increase in the prevalence of chronic diseases and ultimately drives medical demand. device.
This demand is expected to continue growing in the coming decades. According to UN statistics, the number of people over the age of 65 is expected to account for around 16% of the world's population by 2050, which amounts to around 1.5 billion people worldwide. This demographic change is expected to be particularly noticeable in regions such as Europe and North America. The region's population over the age of 65 is expected to reach 26.9% by 2050.
Also Read: 12 Best Hair Care Stocks to Buy According to Hedge Funds and Best Furniture Stocks to Buy Now.
Furthermore, technological advances such as increased use of AI, predictive analytics, and advanced algorithms have transformed into the healthcare technology industry. North America is the largest medical device market, while Asia-Pacific is growing at its fastest.
Another report from Grand View Research estimates that the market size for US medical device manufacturers is approximately $256.2 billion as of 2024. It is expected to grow at a combined annual growth rate of 5.9% between 2025 and 2030. Growth includes an increase in the elderly population, an increase in road and sporting accidents, an increase in the geographical range of key players in the market, and an increase in adoption of minimal invasive procedures in the industry.
According to McKinsey, the healthcare industry is expected to continue to undergo changes in growth dynamics. Health Services and Technology (HST) revenue pool is expected to grow at a combined annual growth rate of 8% between 2023 and 2028, supported by double-digit growth of the software platform and advanced data and analytics It's been done. The sale of innovative technologies such as generation AI to payers and providers further supports this growth.
The story continues
Furthermore, pharmacy services, particularly focused on specialty pharmacies, are expected to see continuous growth. The initiation and increased use of new treatments is expected to be a major factor in this growth. McKinsey estimates that specialized pharmacies will increase revenues at a combined annual growth rate of 8% between 2023 and 2028, expanding EBITDA for managed service providers and specialized pharmacies. Therefore, optimism has been realized across the healthcare industry, including the medical device sector.
We sifted through stock screeners, online rankings and ETFs to compile a list of 20 medical device inventory. Since then, as of the third quarter of 2024, we have selected the top 10 most popular stocks among elite hedge funds. Hedge fund sentiment data was sourced from InsiderMonkey's database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter's strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points (see more here).
Intuitive Surgical, Inc. Is (ISRG) the best automated stock to buy according to hedge funds?
A medical team performing minimally invasive surgery using the Da Vinci surgical system.
Number of hedge fund holders: 82
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provide robot-assisted surgical solutions and invasive care. Its products include the ion inner product type and the da Vinci surgical system. 2024, Intuitive Surgical, Inc. (NASDAQ: ISRG) has expanded its installation system base to 9,902, reflecting 15% growth. It also increased the number of steps carried out by 17%, indicating the global adoption of the technology.
The 2024 fiscal quarter results also showed significant growth, with Da Vinci's procedure rising by 18%. Overall revenue also rose 25% to $2.41 billion, breaking the $2.24 billion consensus. Intuitive Surgical, Inc. (NASDAQ:ISRG) holds a key position in the surgical robot market. According to Grand View Research, the surgical robot market is expected to grow at a combined annual growth rate of 9.5% until 2030. The global market is expected to be worth around $7.4 billion from $4.3 billion last year. The market has the potential to grow over the next few years, supported by rapid advances in medical technology.
Intuitive Surgical, Inc. (NASDAQ:ISRG) management expressed optimism in 2025, hoping for 13%-16% growth in DA Vinci procedures around the world. This optimism is the Food and Drug Administration's intuitive Surgical, Inc. This happens after granting permission to the latest generation of Da Vinci 5 (NASDAQ: ISRG). This is an advanced system that combines more digital interfaces with machine learning capabilities and AI. The company ranks fourth on the list of the 10 best medical device stocks, according to hedge funds.
Baron Health Care Fund, in a Q2 2024 investor letter, Intuitive Surgical, Inc. The following is mentioned about (NASDAQ: ISRG).
“Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the Da Vinci Surgery System, a robotic surgical system used for minimally invasive surgery. Stocks are for the company's new robotic surgical system, Da Vinci 5 It worked well for the excitement of DaVinci5. We offer imaging, forced feedback, and other improvements. We are a market leader in robotic surgery with intuitive durable competitive advantages. We continue to believe that we will continue to be. I think the company has a long runway for growth, as more steps are taken on the company's equipment.”
Overall, ISRG ranks fourth on the list of the best medical device stocks, according to hedge funds. We acknowledge the possibility of ISRG, but our belief is that AI stocks offer higher returns and hold a greater promise to do so within a shorter time frame. there is. If you're looking for AI stocks that are more promising than ISRG, but trade less than five times the revenue, check out our report on the cheapest AI stocks.
Read next: Buy list of AI companies with market capitalizations under $2 billion 20 AI stocks now
Disclosure: None. This article was originally published on Insider Monkey.
