Intuitive Surgical (ISRG) Soared on Solid Financial Results

Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets products that help physicians and healthcare providers improve the quality of and access to minimally invasive care. The one-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was -8.07%, and its shares gained 10.99% of their value over the last 52 weeks.  On July 30, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $500.51 per share, with a market capitalization of $179.421 billion.

Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its second quarter 2025 investor letter:

"Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive surgical procedures. The stock contributed to performance on solid financial results. Intuitive continues to generate strong procedure growth and is in the early stages of a new product cycle with its da Vinci 5 system. We continue to view Intuitive as a competitively advantaged business with durable moats, including proprietary technology, a strong portfolio of patents, regulatory approvals, a large installed base of robotic systems, a growing base of customers trained on its platform, and a robust balance sheet. We believe the company has a long runway for growth driven by the continued adoption and expansion of robotic surgery."

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the first quarter, which was 95 in the previous quarter. Intuitive Surgical, Inc.'s (NASDAQ:ISRG) reported total revenue of $2.44 billion in the second quarter of 2025, representing 21% growth over the prior year. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared the list of stocks Jim Cramer weighed in. In the previous quarter, Baron Health Care Fund noted that Intuitive Surgical, Inc. (NASDAQ:ISRG) faced a stock decline due to investor rotation and tariff concerns. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.