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 three metrics is most important to the company: procedure growth, system placement or hospital utilization. Cramer responded:
It’s hospital utilization, and what gets me down here is that the stock and earnings are good, but the multiple is too high. And when I say that, we have to go back to How to Make Money in Any Market. My book spends a lot of time on the idea that if the multiple is too high, no matter what the sales and earnings are, it simply won’t go any higher. And that’s happening with Intuitive. It has simply become too expensive per share.
A laptop and a computer monitor show 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 diagnostic and surgical procedures. Polen Capital Management Llc stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Polen Focus Growth Strategy Q4 2025 investor letter:
In the fourth quarter of 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, which maintains a de facto monopoly in robotic soft tissue 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 robotics over time. The barriers to entering its market are high due to decades of proven efficacy and safety, as well as the fact that most surgeons are trained on the company’s Da Vinci robots, whether in medical school or on the job, and continue to innovate and distance themselves from potential entrants. The company recently fully launched its next-generation platform that should accelerate process 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 recognize ISRG’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.