In today's video, I continue my series on high-growth artificial intelligence. I have done my best to find the highest-growth companies in a variety of sectors with disruptive growth trends. Last time, I discussed how Square is leveraging artificial intelligence and machine learning to improve Cash App and combat deepfake AI. Today, I'm providing stock analysis on what I consider to be the best robotic surgery company, Intuitive Surgical (ISRG -0.55%).
Intuitive Surgical was hurt by the COVID-19 pandemic, but the company has been firing on all cylinders in 2021. This makes it not only a recovery play, but also a solid long-term investment. Intuitive Surgical reported earnings in July, and it announced shipment of 328 new da Vinci Surgical Systems, an increase of 84% compared to the same quarter last year. It grew its install base to 6,335 systems as of June 30, 2021, an increase of 10% versus the same quarter in 2020. This means many of the systems shipped have not been installed, which could create accelerated growth in the coming quarters.
Intuitive Surgical has a healthy balance sheet, and the company has performed over 8.5 million surgical procedures since its inception in 1995. It has a first-mover edge in the robotic surgery field, which provides the company with a tremendous competitive advantage, especially when you consider the AI portion of the business, which improves as it receives and evaluates more data, like Tesla's (TSLA 12.06%). Perhaps most importantly, Intuitive Surgical's business thrives off its recurring revenue model. In fact, over 75% of its revenue is recurring, which is explained in the video.
To top things off, Intuitive Surgical recently announced a 3-for-1 stock split, and shares are expected to start trading on a split-adjusted basis on Oct. 5th. Of course, you do not typically buy a stock solely because of a stock split. If you cut a pizza into eight slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts and psychological considerations, and I think the company looks attractive here as a long-term investment.
In the video below, I provide concise, deep-dive analysis into Intuitive Surgical's business and provide opinions on the stock. Please watch for more information, and don't forget to subscribe to the channel and take a look at the entire AI video series.
*Stock prices used in the below video were during the trading day of Sept. 23, 2021. The video was published on Sept. 23, 2021.
