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This Healthcare Stock Could Become a Major Artificial Intelligence (AI) Player
ISRGIntuitive(ISRG) The Motley Fool·2025-01-06 11:00

AI Integration in Healthcare - Intuitive Surgical is a leader in robotic-assisted surgery (RAS) and has been incorporating AI into its devices and services [2][3] - The company's da Vinci V system, cleared by the FDA in March, features Force Feedback technology, which could eventually integrate AI-supported analytical insights to improve patient outcomes [4][5] - AI is already used in some instruments, such as staplers, to monitor tissue connections, and in the SimNow simulator to predict surgical outcomes and train physicians [6] Financial Performance and Market Position - Intuitive Surgical's revenue for Q3 was 204billion,a172 04 billion, a 17% increase year over year, with adjusted EPS of 1 84, up 26% year over year [8][9] - The da Vinci 5 system has seen rapid adoption, with 110 of the 379 systems placed in Q3 being the latest model, and it has already been used in 12,000 procedures [8] - The RAS market is underpenetrated, with less than 5% of eligible procedures performed robotically as of 2023, indicating significant growth potential [10] Long-Term Growth Prospects - The demand for RAS procedures is expected to increase due to the aging global population, providing a long runway for growth [10] - Intuitive Surgical's integration of AI into its business could become more critical in the future, but the company's long-term prospects remain strong regardless [11]