{"id":492766,"date":"2026-06-24T05:30:23","date_gmt":"2026-06-24T05:30:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/492766\/"},"modified":"2026-06-24T05:30:23","modified_gmt":"2026-06-24T05:30:23","slug":"this-healthcare-stock-trades-at-a-richer-valuation-than-nvidia-could-it-also-deliver-bigger-long-term-returns-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/492766\/","title":{"rendered":"This Healthcare Stock Trades at a Richer Valuation Than Nvidia. Could It Also Deliver Bigger Long-Term Returns?"},"content":{"rendered":"\n<p class=\"yf-1fy9kyt\">Nvidia (NASDAQ: NVDA) is at the forefront of the worldwide artificial intelligence (AI) revolution now unfolding. Investors have rewarded the stock, affording it a lofty price-to-earnings ratio of 31x. That number looks small compared to Intuitive Surgical&#8217;s (NASDAQ: ISRG) 50x P\/E. Here&#8217;s why investors could be shocked by the potential offered by Intuitive Surgical, which actually looks cheap compared to its own history right now.<\/p>\n<p>         Artificial intelligence is changing the world    <\/p>\n<p class=\"yf-1fy9kyt\">There&#8217;s no question about it, <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8d55b9c9-8d33-45c8-9b66-0b5243bcc073\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:AI is already having a profound impact;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;AI is already having a profound impact&quot;}\" class=\"link \">AI is already having a profound impact<\/a> on the world. And the poster child for the AI revolution taking shape is Nvidia, a company that makes high-powered computer chips. At the end of the day, AI is just a fancy computer program, so chips are very important. Nvidia is doing very well right now as a business, as companies work to build out their AI capabilities.<\/p>\n<p class=\"yf-1fy9kyt\">Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a &#8220;Double Down&#8221; signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same &#8220;Total Conviction&#8221; signal is flashing for a company 1\/100th the size of Nvidia.\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=40c1a256-9993-49ac-9053-b3e63657959d&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-dd-total-conviction%3Faid%3D11123%26source%3Disaediica0000074%26ftm_cam%3Dsa-dd-4%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D19375&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8d55b9c9-8d33-45c8-9b66-0b5243bcc073\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Continue \u00bb;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Continue \u00bb&quot;}\" class=\"link \">Continue \u00bb<\/a><\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/06\/3eccc59333f595746ebda00ae3d4456a.jpeg\" alt=\"A hand building a puzzle vertically.\" loading=\"eager\" height=\"600\" width=\"960\" class=\"yf-lglytj  loaded\"\/> Image source: Getty Images.      <\/p>\n<p class=\"yf-1fy9kyt\">However, technology changes quickly, and the industry is highly competitive. Nvidia is at the top right now, but that&#8217;s no guarantee it will remain there. While it could remain the industry leader, it could also be displaced if another chipmaker leapfrogs its chip technology.<\/p>\n<p class=\"yf-1fy9kyt\">Intuitive Surgical is a leader in a vital market that addresses something that doesn&#8217;t change very quickly: the human body. And while its P\/E ratio is 50x, far higher than Nvidia&#8217;s, <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/healthcare\/medical-device-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8d55b9c9-8d33-45c8-9b66-0b5243bcc073\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:the medical device maker;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;the medical device maker&quot;}\" class=\"link \">the medical device maker<\/a> is actually cheaper than it has been. Its five-year average P\/E ratio is nearly 70%. Here&#8217;s why you may want to buy Intuitive Surgical while it still looks cheap relative to its own history.<\/p>\n<p>         What does Intuitive Surgical do?    <\/p>\n<p class=\"yf-1fy9kyt\">Intuitive Surgical is a leader in surgical robotics. Robotic surgery is less invasive and offers better outcomes, which is driving strong demand. The number of surgeries performed with one of Intuitive Surgical&#8217;s da Vinci surgical robots rose 17% year over year in the first quarter of 2026. That&#8217;s notable because the number of da Vinci robots operating worldwide increased by only 12%.<\/p>\n<p class=\"yf-1fy9kyt\">That said, the real story with Intuitive Surgical isn&#8217;t actually the robots it sells. They only account for around 25% of the company&#8217;s top line. The rest comes from the services, instruments, and accessories that support da Vinci robots. These are annuity-like income streams, since da Vinci robots require maintenance and regular parts replacement. And, equally important, every new da Vinci robot put into service increases the opportunity from what amounts to the company&#8217;s parts and services business.<\/p>\n<p>    Story Continues  <\/p>\n<p class=\"yf-1fy9kyt\">There&#8217;s another growth opportunity, as well, because surgical robots are still a fairly new healthcare technology. Healthcare is highly regulated, and medical devices must be approved for specific applications. Thus, Intuitive Surgical&#8217;s growth will also be bolstered by expanded use cases for the da Vinci system. For example, in late 2025, the company announced that the FDA had &#8220;cleared the da Vinci Single Port (SP) surgical system for use in inguinal hernia repair, cholecystectomy, and appendectomy procedures.&#8221;<\/p>\n<p>       Why Intuitive Surgical could be bigger than Nvidia   <\/p>\n<p class=\"yf-1fy9kyt\">Once Nvidia sells a chip, it is basically done with that sale. When Intuitive Surgical sells a new surgical robot, it increases the company&#8217;s annuity-like income stream from parts and services sales. And since the human body changes at a glacial pace, da Vinci robots won&#8217;t be obsolete in a few months or years, like an AI chip might be.<\/p>\n<p class=\"yf-1fy9kyt\">While Intuitive Surgical is more expensive than Nvidia, there is a significant long-term opportunity (including the potential to increasingly incorporate AI into the da Vinci platform). Given the discount from Intuitive Surgical&#8217;s historical valuation, now could be a good time to jump on this growth stock for more aggressive investors.<\/p>\n<p>     Should you buy stock in Intuitive Surgical right now?   <\/p>\n<p class=\"yf-1fy9kyt\">Before you buy stock in Intuitive Surgical, consider this:<\/p>\n<p class=\"yf-1fy9kyt\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=883e3d1b-0c3e-428e-9dc0-6cbe8e4a9777&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001181%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18781&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8d55b9c9-8d33-45c8-9b66-0b5243bcc073\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;10 best stocks&quot;}\" class=\"link \">10 best stocks<\/a> for investors to buy now\u2026 and Intuitive Surgical wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1fy9kyt\">Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $417,305!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,293,148!*<\/p>\n<p class=\"yf-1fy9kyt\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 936% \u2014 a market-crushing outperformance compared to 209% for the S&amp;P 500.\u00a0Don&#8217;t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n<p class=\"yf-1fy9kyt\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=883e3d1b-0c3e-428e-9dc0-6cbe8e4a9777&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001181%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D18781%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DIntuitive%2520Surgical&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8d55b9c9-8d33-45c8-9b66-0b5243bcc073\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;See the 10 stocks \u00bb&quot;}\">See the 10 stocks \u00bb<\/a><\/p>\n<p class=\"yf-1fy9kyt\">*Stock Advisor returns as of June 21, 2026. <\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/www.fool.com\/author\/2110\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Reuben Gregg Brewer;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Reuben Gregg Brewer&quot;}\" class=\"link \">Reuben Gregg Brewer<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical and Nvidia. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;disclosure policy&quot;}\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1fy9kyt\"><a href=\"https:\/\/www.fool.com\/investing\/2026\/06\/21\/this-healthcare-stock-trades-at-a-richer-valuation\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:This Healthcare Stock Trades at a Richer Valuation Than Nvidia. Could It Also Deliver Bigger Long-Term Returns?;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;This Healthcare Stock Trades at a Richer Valuation Than Nvidia. Could It Also Deliver Bigger Long-Term Returns?&quot;}\" class=\"link \">This Healthcare Stock Trades at a Richer Valuation Than Nvidia. Could It Also Deliver Bigger Long-Term Returns?<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia (NASDAQ: NVDA) is at the forefront of the worldwide artificial intelligence (AI) revolution now unfolding. Investors have&hellip;\n","protected":false},"author":2,"featured_media":492767,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[132880,134,527,61547,111,139,1042,69],"class_list":["post-492766","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-da-vinci-robot","tag-health","tag-healthcare","tag-intuitive-surgical","tag-new-zealand","tag-newzealand","tag-nvidia","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/492766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=492766"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/492766\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/492767"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=492766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=492766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=492766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}