NXP Semiconductors (NXPI) AI Stock Analysis

• Market Cap: $57.82B
• Dividend Yield: 1.82%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.59
• Revenue Growth: -6.81%
• EPS Growth: -23.16%
• Country: US
• Employees: 33,100
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.11
• Shares Outstanding: 251,674,470
• 10 Day Avg. Volume: 2,874,428
• 30 Day Avg. Volume: 2,770,161
• PEG Ratio: -2.31
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 4.21
• P/FCF Ratio: 25.81
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 10.09
• Enterprise Value/Ebitda: 18.26
• 1Y Price Target: $252.16
• Price Target Upside: 12.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 11.78
• Revenue Forecast (FY): $12.23B

• Rating: 70 Neutral
• Price Target: $251.00 ▲(12.44% Upside)

NXP Semiconductors' overall stock score reflects strong profitability and operational efficiency, supported by positive technical indicators. However, high leverage, premium valuation, and challenges in revenue growth and inventory management pose risks. The company's strategic focus on Industrial and IoT markets, along with recent acquisitions, provides a positive outlook for future growth.

Positive Factors

Strategic Acquisitions

The acquisitions of Kinara and Aviva Links are expected to significantly boost NXP's revenue by 2028, enhancing its position in intelligent edge systems.

Industrial and IoT Segment Growth

Strong growth in the Industrial and IoT segment indicates robust demand and positions NXP well in expanding markets, supporting long-term revenue growth.

Leadership Transition

The appointment of Rafael Sotomayor as CEO signals continuity in strategic direction and leadership, potentially fostering stability and sustained growth.

Negative Factors

High Leverage

High leverage could strain NXP's financial flexibility, posing risks to cash flow and limiting the ability to invest in growth opportunities.

Year-over-Year Revenue Decline

A decline in year-over-year revenue suggests challenges in market expansion or demand, potentially impacting long-term growth prospects.

Operating Margin Decrease

A decrease in operating margin indicates potential cost pressures or inefficiencies, which could affect profitability and operational efficiency over time.

NXP Semiconductors Business Overview & Revenue Model

Company Description

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. The company's product solutions are used in a range of applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Malaysia, and internationally. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.

How the Company Makes Money

NXP Semiconductors generates revenue primarily through the sale of semiconductor products and solutions. The company has several key revenue streams, including automotive semiconductors, which cater to the growing demand for advanced driver-assistance systems (ADAS) and electric vehicle (EV) technologies; secure identification and payment solutions; and connectivity solutions for IoT devices. NXP also benefits from strategic partnerships with leading technology firms and automotive manufacturers, enhancing its market reach and product offerings. Additionally, the company invests in research and development to innovate and expand its product portfolio, which supports long-term revenue growth.

NXP Semiconductors Financial Statement Overview

Summary

NXP Semiconductors demonstrates strong profitability and operational efficiency, with robust margins and effective equity utilization. However, recent revenue decline and high leverage could pose risks. Cash flow management appears stable but shows signs of pressure, necessitating careful monitoring of cash generation and debt levels.

Income Statement

NXP Semiconductors has shown strong profitability with a consistent gross profit margin around 55-57% and a net profit margin improving to 17.7% in the TTM. However, revenue growth has been negative recently, indicating potential challenges in market expansion or demand. The EBIT and EBITDA margins remain robust, reflecting efficient operational management.

Balance Sheet

The company maintains a relatively high debt-to-equity ratio of 1.12 in the TTM, indicating significant leverage, which could pose risks if not managed carefully. Return on equity has decreased to 22.9% in the TTM, but remains strong, suggesting effective use of equity to generate profits. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

Operating cash flow to net income ratio has decreased to 0.55 in the TTM, suggesting less cash generation from operations relative to net income. Free cash flow growth has been negative, reflecting potential cash management challenges. However, the free cash flow to net income ratio remains healthy at 0.87, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.04B	12.61B	13.28B	13.21B	11.06B	8.61B
Gross Profit	6.59B	7.12B	7.55B	7.52B	6.07B	4.24B
EBITDA	3.64B	4.42B	4.90B	5.04B	3.81B	2.35B
Net Income	2.06B	2.51B	2.80B	2.79B	1.87B	52.00M
Balance Sheet
Total Assets	26.35B	24.39B	24.35B	23.24B	20.86B	19.85B
Cash, Cash Equivalents and Short-Term Investments	3.95B	3.03B	4.06B	3.62B	2.83B	2.27B
Total Debt	12.23B	10.85B	11.18B	11.16B	10.57B	7.61B
Total Liabilities	15.93B	14.85B	15.39B	15.50B	14.09B	10.70B
Stockholders Equity	10.04B	9.18B	8.64B	7.45B	6.53B	8.94B
Cash Flow
Free Cash Flow	2.07B	2.06B	2.51B	2.67B	2.15B	1.96B
Operating Cash Flow	2.26B	2.78B	3.51B	3.90B	3.08B	2.48B
Investing Cash Flow	-1.67B	-686.00M	-1.51B	-1.25B	-934.00M	-418.00M
Financing Cash Flow	140.98M	-2.66B	-1.99B	-1.62B	-1.58B	-835.00M

NXP Semiconductors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 223.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Positive. The current price of 223.23 is above the 20-day moving average (MA) of 212.66, above the 50-day MA of 210.78, and above the 200-day MA of 208.72, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 46.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXPI.

NXP Semiconductors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXN	78 Outperform	$161.34B	32.39	29.60%	3.10%	9.90%	1.65%
MRVL	76 Outperform	$71.30B	29.44	18.04%	0.28%	44.95%	―
ON	73 Outperform	$21.95B	69.59	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$57.82B	28.22	21.19%	1.82%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.10B	45.60	3.00%	1.30%	-17.33%	-76.71%
MCHP	54 Neutral	$35.62B	-141.70	-2.85%	2.76%	-23.36%	-131.15%

NXP Semiconductors Corporate Events

NXP Semiconductors Declares Q4 2025 Interim Dividend

On November 19, 2025, NXP Semiconductors announced that its board of directors approved an interim dividend of $1.014 per ordinary share for the fourth quarter of 2025, to be paid on January 7, 2026. This decision reflects the board’s confidence in NXP’s strong capital structure and its ability to sustain long-term growth and robust cash flow, highlighting the company’s commitment to returning capital to shareholders.

NXP Semiconductors Announces CEO Retirement and Successor

NXP Semiconductors announced the voluntary retirement of CEO Kurt Sievers on October 28, 2025, with Rafael Sotomayor appointed as his successor. The company reported third-quarter 2025 revenue of $3.17 billion, highlighting a sequential improvement across all regions and end markets, despite a 2% year-on-year decline. NXP also made strategic moves, including the sale of its MEMS sensors business and the acquisition of Aviva Links, to strengthen its position in the automotive and industrial markets.