Nvidia (NASDAQ: NVDA) is the talk of the stock market these days. The artificial intelligence (AI) stock has hit a $3 trillion valuation and it looks unstoppable. But the danger in jumping aboard that bandwagon is that sooner or later, the excitement stops, and you may find out you bought shares near or at the peak.
Investors have fallen into trouble with exciting growth stocks in the past, buying COVID stocks, meme stocks, metaverse stocks, and other thematic stocks only to see those investments falter. Maybe Nvidia will prove to be the exception, but there are arguably better valued growth stocks to buy right now.
One healthcare stock that looks promising if you’re a long-term investor is Intuitive Surgical (NASDAQ: ISRG). You’re still investing in next-gen technologies, and this is a magnificent stock that could have plenty more room to run in the future.
The company’s newest system is AI-ready
Intuitive Surgical makes robotic-assisted surgical systems. This year, it unveiled its latest iteration, the da Vinci 5. It features realistic 3D imaging, improved depth perception, improved ergonomics, and has more than 150 design innovations it believes will help improve efficiency and throughput for its users.
The company’s transformative systems have the potential to revolutionize the healthcare industry by making surgery less invasive, quicker, and more accurate. It can help surgeons save time while leading to better outcomes for patients. The new system also has significantly more computing power than its predecessor, as it can benefit from developments in AI and machine learning.
In March, the Food and Drug Administration (FDA) provided the da Vinci 5 system with the necessary 510(k) clearance. And the company already placed eight of the systems during the first quarter.
Procedure growth continues to be strong
A key metric for Intuitive investors is the number of procedures used on its surgical systems. It’s an important metric that helps to gauge the growing popularity of the systems and it’s also a source of revenue for the business. Intuitive makes between $800 and…
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