ISRG Stock To $5,000

Core Viewpoint - Intuitive Surgical (NASDAQ: ISRG) stock is projected to grow nearly 10x in the long term as its robotic surgical business transforms the healthcare sector, similar to Nvidia's stock trajectory in recent years [1] Group 1: Market Potential - Over 300 million surgeries are performed globally each year, and if robotic systems capture half of that market, it would equate to 150 million annual robotic surgeries, significantly higher than ISRG's current performance [2] - Each robotic surgical system performs an average of 250 surgeries annually, indicating that achieving 150 million robotic surgeries would require approximately 600,000 robotic surgery platforms [4] Group 2: Revenue Generation - Each robotic surgery unit generates around $660,000 in annual recurring revenue, leading to a potential total of over$350 billion in recurring revenues if 600,000 units are deployed [4] - If ISRG captures half of the global robotic surgery volume, it could generate annual revenues of approximately $175 billion, resulting in$55 billion in profits at a 32% net margin [6] Group 3: Competitive Advantage - ISRG is ahead of competitors like Medtronic and Johnson & Johnson, with its latest platform, da Vinci 5, already FDA-approved, providing a competitive edge in the market [5] - The da Vinci 5 platform's versatility allows it to perform various types of surgeries, making it a preferred choice for hospitals [5] Group 4: Financial Metrics - ISRG enjoys a high gross margin of close to 70% and net margins around 30%, with potential for further margin improvement as the installed base and recurring revenue grow [6] - The stock has shown volatility, with returns of 32% in 2021, -26% in 2022, and 27% in 2023, indicating a more fluctuating performance compared to the S&P 500 [8]