Should You Hold Intuitive Surgical (ISRG)?

Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets continued their upward trajectory in the third quarter, with the S&P 500 Index rising 8.12%. A combination of improving economic conditions, solid corporate earnings, and growing expectations for monetary easing drove the strong performance. Against this backdrop, Class A shares of the Fund outperformed the Russell 3000 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Spectra 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 32.04%, and its shares gained 7.29% of their value over the last 52 weeks. On November 10, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $576.20 per share, with a market capitalization of $204.261 billion.

Alger Spectra Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its third quarter 2025 investor letter:

"Intuitive Surgical, Inc. (NASDAQ:ISRG) develops advanced surgical systems that help physicians perform less invasive procedures across a range of specialties. The company complements its systems with instruments, services, and training that support consistent use and outcomes over time. We believe Intuitive Surgical benefits from a strong business model, deep clinical expertise, and a large installed base that encourages ongoing adoption. Shares detracted during the quarter as procedure growth trends moderated and investors grew cautious about spending by hospitals amid a more uncertain macro backdrop. Additional pressure came from concerns around competitive dynamics and the timing of new system placements. While these factors weighed on sentiment, we continue to believe in Intuitive Surgical’s strong market position and ability to benefit from the ongoing shift toward minimally invasive care."

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 107 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the second quarter, up from 106 in the previous quarter. In the third quarter of 2025, Intuitive Surgical, Inc.’s (NASDAQ:ISRG) revenue grew 23% to $2.5 billion. 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 Baron Health Care Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 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.