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We have recently compiled a list of the Top 10 Artificial Intelligence (AI) Stocks to Buy According to Financial Media. In this article, we will analyze how Intuitive Surgical, Inc. (NASDAQ:ISRG) stacks up against other AI stocks recommended by financial media.
CEO says AI will ‘continue to add value’
Artificial Intelligence (AI) has become a technology that most people are increasingly familiar with. AI is infiltrating almost every aspect of life, from the advertisements we see on social media apps to the self-driving cars that many consumers are switching to. It is not an exaggeration to say that AI has become an integral part of the everyday lives of everyone using technology today. Considering the widespread use and application of AI technology, this area of the market has become an interesting area to invest in today.
With the recent release of earnings from major tech companies, many investors are wondering what role AI plays in tech markets today and how it will evolve. On August 2, Databricks CEO Ali Ghodsi appeared on CNBC’s “The Exchange” to discuss this very development. Here are some of his comments:
“I think what’s happening is two things. On the one hand, the macroeconomy, which has been quite turbulent for a long period of time, and it seems to be now coming to an end, as we see it in the labor market and people are seeing it in inflation and the 10-year interest rates going down and so on. On the other hand, we see AI. People are very excited, they know it’s going to absolutely change the entire world, and the hyperscalers have made huge investments in AI. But we as a company have been investing in data and AI for the last 10 years, and you know we see steady revenue growth and customers getting value from it, but there’s been a huge deployment of capital… I think AI is going to be amazing, it’s going to continue to deliver value.”
Ghodsi’s comments shed light on the current market view on AI, namely that it is an area of technology that cannot be ignored and should be invested in as much as possible. However, in light of this market view, many investors may be starting to question whether the massive amounts of investment being made in AI are justified or whether we are simply in what some might call an “AI bubble” that is definitely going to burst. However, given the immense value that can be found in AI, many investors believe that such massive capital deployments are in fact justified.
The West Coast Smartphone Giant: AI Stock or Not?
Given the above, it is not surprising that several big tech companies are part of the rat race to invest in and develop AI technologies. However, a notable absence from most of the lists of the best AI stocks to buy being made by financial media journalists is Apple. Many investors are starting to take note of the fact that it is lagging behind other big tech companies that are rapidly developing AI technology. On August 6, Walter Piecyk of Lightshed Partners shared his take on the smartphone maker’s AI moves on CNBC’s “Squawk Box.”
“I signed up as a developer for the latest development or the latest version of iOS 18. I’ve been using the smart series, not much better… Obviously, there’s a lot of work that’s going to be done between now and when this formally launches. I just don’t think this will have a huge impact this year or next year.”
Investors could benefit more by going for more AI-focused investments. For this reason, we have put together a list of the best AI stocks to buy according to financial media, in order to provide insight into companies that are actually doing a good job in the AI sector today. Our list includes some of the best AI companies to invest in. The best AI stocks to buy, according to analysts and some of the Companies offering the best AI SEO tools in 2024 too.
Our methodology
We selected AI stocks that were on the best AI stocks lists of several financial news reporters, including Forbes, Motley Fool, Nasdaq, US News, and NerdWallet. We then selected and ranked the stocks based on the number of hedge funds that have stakes in them, from lowest to highest, using Insider Monkey’s hedge fund data for Q1 2024.
Why do we care about the stocks that hedge funds are piling into? The reason is simple: Our research has shown that we can beat the market by mimicking the best hedge funds’ top stock picks. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points.See more details here).
A medical team performs minimally invasive surgery using a da Vinci surgical system.
Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of hedge fund holders: 79
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a Sunnyvale, California-based healthcare equipment provider. The company focuses on improving robotic surgery procedures with artificial intelligence. In July 2023, the company launched its first AI-powered digital tool, Case Insights, to enable surgeons to study their procedure data and tailor their approaches to improve performance for future patients. Following the launch of this product, the company’s CEO Gary Guthart noted that Intuitive Surgical, Inc.’s (NASDAQ:ISRG) AI technologies could help shorten surgeon training times and could also improve the efficiency of surgical programs to reduce costs. Considering the revolutionary ideas that Intuitive Surgical, Inc. (NASDAQ:ISRG) is leading in the field of medical AI, this stock is worth owning for AI investors looking for a unique play in the market.
In the first quarter, there were 79 hedge funds with positions in Intuitive Surgical, Inc. (NASDAQ:ISRG), with a total holding value of $6.4 billion. ARK Investment Management He was the company’s largest shareholder, with 33,280 shares.
Baron Funds mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2024 earnings release to investors. letter:
“Intuitive Surgery, Inc. (NASDAQ:ISRG) makes the da Vinci Surgical System, a robotic surgical system used for minimally invasive procedures. The stock performed well due to enthusiasm for the company’s new robotic surgical system, the da Vinci 5, which offers enhanced imaging, force feedback, and other improvements. We continue to believe that Intuitive has durable competitive advantages and will remain the market leader in robotic surgery. We believe the company has a long way to go for growth as more procedures are performed with the company’s equipment.”
General ISRG ranks tenth on our list of the best AI stocks to buy according to financial media. You can visit Top 10 Artificial Intelligence (AI) Stocks to Buy According to Financial Media to see the other AI stocks that are on hedge funds’ radar. While we recognize ISRG’s potential as an investment, our conviction lies in the belief that AI stocks hold more promise for generating higher returns and doing so in a shorter time frame. If you’re looking for an AI stock that holds more promise than ISRG but is trading at less than 5x earnings, check out our report on the stock. The cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.