AI and Robots in Surgery: 3 Stocks Positioned for the Next Medical Revolution

By April 2025, large language models (LLMs) will have demonstrated the potential to provide more accurate medical diagnoses than humans. At Nanjing University of Chinese Medicine, one such study showed a 66.5% to 98% range for triage accuracy. The most recent study published in June at Oxford Academic concluded that “Leading LLMs show remarkable diagnostic accuracy in diverse clinical cases.”

This isn’t surprising given that AI models have the potential to gain more “experience” than all human doctors combined, alongside having instant access and recollection of every data point known to medicine. Together with advancements in hardware platforms to serve as bodies for multimodal LLMs, it is easy to see a future of medicine that is more affordable, less prone to devastating errors, and more consistent in outcomes.

To that end, we are likely to see integration of LLMs with surgical robotics, just as we are seeing integration of Hyundai’s and Tesla’s humanoid robots. According to Grand View Research, the global surgical robots market size should grow at a CAGR of 9.42% from 2025 to 2030, reaching up to $7.42 billion in market value from $4.31 billion in 2024. These surgical robotics stocks are a good starting point for gaining exposure.

Accuray Inc. (NASDAQ: ARAY) – 264% potential upside

For robotics surgery to be widely adopted, an ideal scenario would be to deploy it first with non-invasive methods. Wisconsin-based Accuray makes this possible with stereotactic radiosurgery (SRS), wherein beams of radiation target diseased tissue such as tumors.

Accuray’s latest CyberKnife S7 F system has sub-millimeter radiosurgery accuracy, ideally suited for delicate procedures in the brain and spine regions. The company has deployed over 350 such systems worldwide. In addition to selling advanced radiotherapy systems, Accuray generates revenue with long-term service contracts for maintenance and support.

Moreover, according to the UN’s World Health Organization (WHO), the global cancer rate is expected to increase 77% by 2050. In August, the company reported $127.5 million in revenue ending June 2025, representing a 5% year-over-year decrease.

However, Accuray successfully refinanced its debt, in addition to generating a net loss of $1.6 million for the fiscal year, compared to $15.5 million net loss last FY. Moving forward, the company maintains a $427 million backlog, with a cash balance of $58 million against total current debt of $195.4 million.

Typical for penny stocks, ARAY has high growth potential, currently priced at $1.52 per share. Three analysts placed the average ARAY price target at $5.50, according to WSJ’s forecasting data. The bottom outlook is $4.50 while the ceiling price target for ARAY stock is $7 per share.

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Siemens Healthineers AG (OTC: SMMNY) – 28% potential upside

Spun from parent Siemens in 2017, Siemens Healthineers operates as a subsidiary, with Siemens still having a controlling stake. The company specializes in medical and molecular imaging, ranging from mobile C-arms to robotic X-ray.

More importantly, the company is actively developing endovascular robotics, preparing for a new era of neurovascular procedures related to strokes. In this light, Siemens Healthineers is a solid exposure as it combines robotic-assisted therapy with smart imaging.

Additionally, the company has the most extensive collection of AI patents in medical imaging, having expanded even to AI data centers. Case in point, its supercomputer Sherlock has a computing capacity of 100 petaflops. This means that Siemens Healthineers is one of the best prepared companies for AI-powered workflows in medicine, providing Healthcare IT.

Ending June, the company generated €5.6 billion in revenue, 7.6% up from €5.4 billion in the year-ago quarter. Outside of Germany, Healthineers established long-term contracts in France and the US, having increased its order backlog by 3x since going public in March 2018.

Despite the tariff impact of around €100 million, the company’s adjusted EBIT margin increased by 160 bps year-over-year. Likewise, its free cash flow doubled for the first 9 months of FY25 to €1.9 billion compared to €0.9 billion for the same period last year.

Nearly all analysts are in the buy camp for SMMNY stock, at an average price target of €60.37 against the current price of €47.20 per share. The bottom price target is also above the current price level, at €50, while the ceiling price target for SMMNY stock is €75 per share.

Intuitive Surgical Inc. (NASDAQ: ISRG) – 26.6% potential upside

Lastly, California-based Intuitive Surgical is at the cutting edge of robotic-assisted minimally invasive surgery. Namely, the company generates revenue from its da Vinci Surgical Systems and Ion endoluminal systems in lung biopsy and thoracic oncology.

Because these systems necessitate proprietary consumables, ranging from scalpels to biopsy instruments, the company has a recurring revenue stream. This is in addition to maintenance and repair services through long-term contracts.

Intuitive Surgical’s robotic systems are one of the most widely adopted, with 10,488 installations globally. Given the training needed, this gives the company a solid first-mover advantage in surgery robotics. As far as AI integration goes, Intuitive extensively uses AI for training, in SureForm staplers for real-time precision, and 3D modeling from scans for early cancer detection.

In pre-op planning, the company also uses AI to highlight critical structures via Firefly fluorescence imaging. For Q2 ending June, Intuitive Surgical reported 17% YoY growth in its flagship da Vinci system procedures. This generated $2.44 billion, up 21% from the year-ago quarter, while net income increased 24.5% to $798 million.

With heavy R&D investments, the company developed Case Insights. This AI-powered analytics tool ensures continuous improvement of surgical outcomes, following each procedure. Of course, in the future, this buildup of data to provide feedback to surgeons could be used to train multimodal LLMs as well.

The majority of analysts are bullish on ISRG stock, setting the average price target of $593.78 against the current price of $469.11 per share. The bottom outlook is $440, while the ceiling price target for ISRG stock is $685 per share.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.