Stereotaxis STXS reached a significant milestone last Wednesday when NVIDIA NVDA took its name for the NVIDIA Connect program. Following the news, Stereotaxis' stock jumped more than 15%, reflecting strong investor confidence in the company’s AI-driven growth trajectory. At a time when the market is hypervigilant about anything linking AI giant NVIDIA, this news came as a breakthrough for STXS.
This collaboration, highlighted at NVIDIA's GTC conference, aims to integrate artificial intelligence into surgical robotics, potentially enhancing Stereotaxis' technological capabilities.
STXS Stock Following NVDA Alliance Announcement
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How Does the NVDA Collaboration Synergize With Steriotaxis?
Stereotaxis is advancing its robotic systems with AI-powered automation, data integration and decision support, all of which can be significantly enhanced by NVIDIA’s industry-leading frameworks, software development kits and GPU-accelerated computing. This partnership also strengthens the interventional laboratory ecosystem by integrating AI-powered medical imaging and analytics, ultimately leading to improved clinical outcomes and a more intelligent, connected operating room environment.
Additionally, joining the NVIDIA Connect program provides Stereotaxis with access to cutting-edge AI tools and a broader network of industry collaborations, accelerating its pipeline.
Healthcare big names like IQVIA and Illumina are already using NVIDIA AI to speed drug discovery enhanced genomic research and create advanced health care services with generative and Agentic AI. With AI fast becoming a key factor in health advancements (read: NVIDIA's AI Speeds Up MedTech's Digital Boom: 3 Stocks in Focus), this latest partnership could open doors for Stereotaxis to expand into predictive analytics, remote surgery capabilities and enhanced preoperative planning.
A High Piotroski-Score Stock Scales Up STXS Target Price
The Piotroski Score is a financial health indicator ranging from 0 to 9. This score is used to assess a company’s fundamental strength based on profitability, leverage, liquidity and operating efficiency. NVIDIA’s perfect Piotroski Score of 9 signals that it is in strong financial health, making it a reliable technology partner for companies like Stereotaxis.
Going by an investing.com report, a prominent broker recently maintained a Buy rating for STXS with a $5.00 price target. This indicates an upside of 134.7% from the stock’s last closing price.
Also, the average short-term price target signifies a 111.3% upside from the stock’s last closing price.
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Four-Pillar Strategy Bodes Well Too
Under the company’s first pillar of simplified robot installation, the GenesisX system has received CE Mark and is awaiting FDA clearance in the United States. The first GenesisX installation and use in Europe is planned for the summer of 2025, with a broader commercial launch expected later in the year. As part of the second pillar of building a catheter ecosystem — the MAGIC ablation catheter was recently approved in Europe, with initial sales expected to generate $1 million per quarter by year-end. FDA approval is anticipated in the second half of 2025 and the MAGIC Sweep high-density mapping catheter has been submitted for regulatory approval in both Europe and the United States with decisions expected in the third quarter of 2025.
Within the third pillar of expanding endovascular applications, the company has submitted its first vascular catheter, EMAGIN, for FDA and European approval. This move signals an entry into stroke, cancer, and cardiovascular markets, with long-term potential to multiply Stereotaxis’ addressable market. Within the fourth pillar of AI and connectivity solutions, the SynX digital surgery platform will be introduced in April 2025. Regulatory approvals are expected by midyear, supporting a freemium SaaS business model.
Long-Term Snags Remain
Stereotaxis has faced key structural limitations in the past, including a lack of proprietary catheters and a robot that was difficult to adopt.
Further, despite reporting a 39% year-over-year revenue increase in the fourth quarter of 2024, Stereotaxis' full-year revenues remained flat at $26.9 million, signaling underlying growth challenges. The company does not expect significant revenue growth in 2025, particularly in system sales, which are often volatile due to long sales cycles and hospital budget constraints. The company currently expects a commercial breakout not before 2026 as new solutions gain traction in electrophysiology and vascular interventions.
Expensive Valuation
In terms of valuation, Steriotaxis’ forward 12-month price-to-sales (P/S) is 4.4X, a premium to the market's average of 4.3X. The company is also trading at a premium to its competitor, Merit Medical Systems MMSI. MMSI currently trades at a forward 12-month P/S of 3.9X. This suggests that investors may be paying a higher price relative to STXS’ expected sales growth.
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Our Take
The global surgical robot systems market was valued at $11.48 billion in 2024 and is expected to witness a CAGR of 12.4% from 2025 to 2030. Stereotaxis is strategically positioning itself as a leader in robotic endovascular surgery, targeting this vast, underpenetrated market. The NVDA deal is set to significantly enhance Stereotaxis' technological capabilities. With multiple product launches planned for 2025, the company anticipates a commercial breakthrough in 2026 as its new solutions gain traction in electrophysiology and vascular interventions. However, slow revenue growth and limited 2025 prospects are limiting this Zacks Rank #3 (Hold) stock’s near-term prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains, providing a better entry point.
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