Core Insights - The article highlights three stocks that have significantly outperformed the market over the past decade: Intuitive Surgical, Nvidia, and Axon Enterprise, with returns ranging from 887% to over 22,120% [2][4][8]. Intuitive Surgical - Intuitive Surgical specializes in robotic-assisted surgical systems, enhancing surgical precision and patient outcomes [3]. - Over the past decade, Intuitive Surgical's shares have increased by more than 887%, with notable underperformance in 2019 and 2022 [4]. - The company has a market capitalization of $202 billion and a gross margin of 66.37%, with projected growth of around 17% in da Vinci procedures this year [6]. - Despite a high price-to-earnings (P/E) ratio of 75, the stock is considered a promising long-term investment due to its innovative products [7]. Nvidia - Nvidia, a leading chipmaker, has achieved returns exceeding 22,120% over the past decade and is currently the most valuable company globally [8]. - The stock has risen 34% this year, with only two years of underperformance against the S&P 500 in 2018 and 2022 [8]. - Nvidia has a market capitalization of $4,364 billion and a gross margin of 70.05%, with significant free cash flow of over $77 billion [10][11]. - The stock trades at a P/E ratio of 44, which is considered high but justifiable given its growth potential in the AI sector [9]. Axon Enterprise - Axon Enterprise, known for its body cameras and less-lethal weapons, has seen its valuation rise by 2,860% over the past decade [12]. - The company had off years in 2015 and 2017 but generated positive returns in 2022 amid market turmoil [12]. - Axon has a market capitalization of $43 billion and a gross margin of 60.31%, but it trades at a high P/E ratio of 171, indicating potential overvaluation [14][13]. - The stock is currently down 10% this year, and while it has strong growth prospects, it is advised to be cautious due to its high valuation [15].

Market Overview - President Trump's comments on China's hostility regarding rare earth metals led to a significant market reaction, with the Nasdaq Composite index dropping 3.96% by the end of the day on October 10, 2025 [2] - The average stock in the S&P 500 index is trading at 22.3 times forward earnings estimates, a level not seen since late 2021 before a bear market [3] Company Analysis: Intuitive Surgical - Intuitive Surgical is the first company to market a robot-assisted surgical system, with over 11,000 systems installed globally, maintaining its position as the largest in the industry [5] - The stock price of Intuitive Surgical has decreased by 29% from its all-time high earlier this year, but it has appreciated approximately 18,790% since its IPO [5] - The company reported a 14% year-over-year increase in procedure volume in Q2, contributing to a 21% rise in revenue compared to the previous year [8] - Intuitive Surgical's stock is currently trading at a high multiple of 53.6 times forward-looking earnings, which may present a more attractive valuation during a market downturn [9] Company Analysis: Vertex Pharmaceuticals - Vertex Pharmaceuticals specializes in treatments for cystic fibrosis, with its stock rising 1,820% over the past 20 years due to its unique position in the market [10] - The company has significantly improved the median survival age for cystic fibrosis patients, with many expected to live to age 65 or older [11] - Vertex's first treatment, Kalydeco, was approved in 2012, and the company has since developed a three-drug combination, Alyftrek, which addresses a broader range of CFTR mutations [13] - Vertex's shares are trading at a relatively low multiple of 22.7 times forward-looking earnings estimates, making it an attractive option for investors [14]