Investors remain extremely upbeat about the outlook for artificial intelligence (AI) stocks, despite fears of an AI bubble. The likely reason is the expectation that these complex computer programs will creep into all aspects of life. It is already happening, but there are still plenty of things AI isn't doing that it probably could. One of those things is performing surgery.
If you see the opportunity for AI surgery, you aren't alone. The technology is already being used to assist human doctors. Here are two AI surgery plays that could let you get ahead of the trend: Intuitive Surgical (ISRG 2.87%) and Medtronic (MDT 1.79%).
Image source: Getty Images.
Intuitive Surgical is the focused option
If you think AI surgery will be a huge advance for the healthcare sector, then a pure-play surgical robotics company could be the right choice for you. Intuitive Surgical is a pioneer in the space and is 100% focused on making surgical robots. In 2025, the company installed 1,721 of its da Vinci surgical robots, up from 1,526 in 2024, a nearly 13% increase. The total number of surgical robots in place at the end of 2025 was 11,106, an increase of 12% year over year.
NASDAQ: ISRG
Key Data Points
Demand for surgical robots among patients is strong, with the number of surgeries performed with a da Vinci system up 18% year over year in 2025. The company expects the number of surgeries performed in 2026 to rise as much as 15%. However, when it comes to artificial intelligence, the big story is the FDA approval of an AI tool to help surgeons make real-time adjustments when performing lung surgery. In other words, AI is already in the mix.
It isn't a huge leap to think that the data created by da Vinci surgical robots could be harnessed to train AI. Nor is it a stretch to envision a da Vinci robot performing surgery on its own. If you are an aggressive growth investor, you might want to buy Intuitive Surgical before that advance takes place. However, you need to go in with the understanding that the stock's valuation is quite high, with a price-to-earnings ratio of 67.
Medtronic is the diversified choice
If you'd prefer more diversification and a lower P/E, you might want to consider Medtronic. Medtronic is one of the world's largest medical device companies, with products across cardiovascular, neuroscience, diabetes, and surgical robotics. That said, the diabetes division is set to be spun off soon. On the valuation front, Medtronic's P/E ratio is 27, which is high, but far more reasonable than 67.
Medtronic isn't quite as far along in the rollout of its surgical robot as Intuitive Surgical. However, all the AI opportunities for Intuitive Surgical's da Vinci system also exist for Medtronic's Hugo system. There's one feature of a Medtronic investment that you won't get with Intuitive Surgical: a dividend.
NYSE: MDT
Key Data Points
Medtronic's dividend yield is 2.8% and it has increased its dividend for 48 consecutive years. The S&P 500 index is only yielding 1.1% right now. If you are a dividend growth investor, Medtronic could be a great fit for your portfolio.
Notably, Medtronic's diabetes spin-off could be a business catalyst. The move is being made to help improve the company's profitability and growth profile. In other words, you might want to make your investment decision sooner rather than later here.
Getting ahead of the AI opportunity
To be clear, AI isn't quite to the point where it is performing surgery. However, you can be sure that companies are working to get it there. If, more likely when, AI is performing surgery, Intuitive Surgical and Medtronic are likely to be deeply involved, given their existing surgical robot technology. Buying now could get you in the door before AI surgery takes off.
