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NXP Semiconductors (NXPI)
NASDAQ:NXPI
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NXP Semiconductors (NXPI) AI Stock Analysis

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NXPI

NXP Semiconductors

(NASDAQ:NXPI)

Rating:76Outperform
Price Target:
$254.00
▲(13.18%Upside)
NXP Semiconductors presents a solid financial foundation with strong profitability, although revenue growth and leverage are concerns. Technical indicators suggest moderate positive momentum, while valuation is fair. The earnings call adds a positive outlook with strategic actions and cyclical recovery potential. Investors should remain cautious but optimistic about future growth drivers.
Positive Factors
Auto and Industrial Market Strength
NXPI guided 3Q25 revenue to $3.15 billion, above our estimate and Consensus due to strength from the Auto/Industrial end markets.
China Market and Destocking
Sustained demand in China and nearly-concluded de-stocking at European customers are seen as constructive for seasonal growth.
Demand and Inventory Health
NXP appears more constructive on demand and inventory health than before, with cyclical signals pointing to cautious optimism.
Negative Factors
Investor Sentiment
Recovery is ongoing, but not as sharp as some expectations, which could affect investor sentiment.
Operating Expenses
NXP's guidance suggests an increase in operating expenses, which might impact profitability.
Tariffs and Trade Tensions
Uncertainty related to tariffs and trade friction could impact future performance and investor confidence.

NXP Semiconductors (NXPI) vs. SPDR S&P 500 ETF (SPY)

NXP Semiconductors Business Overview & Revenue Model

Company DescriptionNXP Semiconductors N.V. (NXPI) is a global semiconductor company headquartered in Eindhoven, Netherlands. It is a leading provider of high-performance mixed-signal and standard product solutions with a focus on automotive, industrial & IoT, mobile, and communication infrastructure markets. NXP's core products include microcontrollers, application processors, connectivity solutions, analog products, radio frequency (RF) power amplifiers, and security controllers. The company leverages its expertise in security, connectivity, and processing to deliver solutions that enable secure connections for a smarter world.
How the Company Makes MoneyNXP Semiconductors generates revenue primarily through the sale of semiconductor products and solutions across various industries. The company's revenue model is based on the design, manufacturing, and marketing of its semiconductor products. Key revenue streams include automotive applications, where NXP provides products for advanced driver assistance systems (ADAS), vehicle networking, and secure car access. In the industrial & IoT sector, NXP offers solutions for smart home devices, industrial automation, and connected devices. The mobile sector contributes to revenue through products for smartphones, wearables, and mobile payment solutions. Additionally, NXP partners with major technology companies and automotive manufacturers, which enhances its product offerings and market reach. The company's ability to innovate and adapt to emerging technologies like 5G and automated driving further supports its revenue generation.

NXP Semiconductors Key Performance Indicators (KPIs)

Any
Any
Revenue by Sales Channel
Revenue by Sales Channel
Analyzes revenue from various sales channels, such as direct sales or distributors, highlighting the company's strategic focus and effectiveness in reaching its customers.
Chart InsightsNXP Semiconductors' revenue from distributors shows a recent downturn after a peak in late 2023, reflecting broader market challenges. OEMs and EMS channels have stabilized but remain below their 2022 highs. The earnings call highlights macroeconomic pressures and a strategic acquisition of Kinara, aimed at bolstering AI capabilities. Despite a year-on-year revenue decline, management sees early signs of recovery with improving backlog levels. The guidance for Q2 2025 suggests slight sequential growth, indicating cautious optimism amid ongoing volatility.
Data provided by:Main Street Data

NXP Semiconductors Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: -1.68%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautiously optimistic outlook. While there are challenges, such as a year-on-year revenue decline and high inventory levels, there are also positive signs of recovery and growth in key segments like Automotive and Industrial & IoT. The company's strategic acquisitions and positive cyclical indicators provide a promising outlook.
Q2-2025 Updates
Positive Updates
Revenue Exceeds Guidance
Revenue was $26 million better than the midpoint of guidance, totaling $2.93 billion for Q2.
Strong Sequential Growth in Key Segments
Automotive is expected to grow in the mid-single-digit range sequentially, and Industrial & IoT is expected to grow in the high single-digit range.
Positive Cyclical Trends Detected
Signals such as growing customer backlog, improved order signals, and increased short-cycle orders indicate the beginning of a new up cycle.
Effective Inventory Management
Channel inventory held steady at 9 weeks, which is below the long-term target of 11 weeks, ensuring competitive positioning.
Successful Strategic Acquisitions
The recent acquisition of TTTech Auto is expected to strengthen NXP's competitive portfolio, despite minimal immediate revenue impact.
Negative Updates
Year-on-Year Revenue Decline
Q2 revenue of $2.93 billion reflects a 6% decrease year-on-year, indicating ongoing challenges.
Non-GAAP Operating Margin Decline
Non-GAAP operating margin in Q2 was 32%, down 230 basis points year-on-year.
Inventory Levels Above Target
Internal days of inventory were at 158 days, above the company's long-term target of 110 days, though a decrease from the previous quarter.
Communication Infrastructure Weakness
The communication infrastructure segment is expected to be down in the upper 20% range year-on-year for Q3.
Company Guidance
During the NXP Second Quarter 2025 Earnings Conference Call, the company provided guidance for the third quarter, reflecting a positive outlook driven by emerging cyclical improvements and company-specific growth drivers. NXP projects Q3 revenue to be $3.15 billion, representing an 8% sequential increase but a 3% year-on-year decrease. The automotive segment is expected to remain flat compared to Q3 2024 but grow in the mid-single-digit range sequentially. Industrial & IoT is anticipated to increase in the mid-single-digit range year-on-year and the high single-digit range sequentially. The mobile segment is forecasted to grow in the low single-digit percent year-on-year and in the mid-20% range sequentially. Meanwhile, communication infrastructure and other categories are expected to decline by the upper 20% range year-on-year and remain flat sequentially. NXP's channel inventory is assumed to stay at 9 weeks, but the company may selectively increase inventory if the cyclical recovery strengthens. The guidance also considers a non-GAAP gross margin of 57% and operating expenses of approximately $735 million, reflecting the recent acquisition of TTTech Auto.

NXP Semiconductors Financial Statement Overview

Summary
NXP Semiconductors shows strong profitability with high gross and net profit margins. However, a decline in revenue growth and increased leverage pose concerns. Effective asset utilization and cash conversion are positive, but decreased operating cash flow suggests potential liquidity challenges.
Income Statement
85
Very Positive
NXP Semiconductors demonstrates strong profitability with a consistent Gross Profit Margin around 54% and a solid Net Profit Margin of approximately 18% in TTM. However, there is a noticeable decline in Total Revenue from the previous year, indicating a challenge in sustaining revenue growth.
Balance Sheet
78
Positive
The company's Debt-to-Equity Ratio is relatively high, indicating significant leverage, with a ratio of approximately 1.15 in TTM. Nevertheless, a strong Return on Equity (ROE) of about 21.6% suggests effective utilization of equity capital. The Equity Ratio stands at 39.3%, reflecting a balanced asset structure.
Cash Flow
80
Positive
NXP shows a healthy Free Cash Flow to Net Income Ratio of 0.93, indicating effective cash conversion. However, the Operating Cash Flow has decreased compared to the prior year, impacting Free Cash Flow growth, which was negative in TTM.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.61B13.28B13.21B11.06B8.61B
Gross Profit7.12B7.55B7.52B6.07B4.24B
EBITDA4.42B4.90B5.04B3.81B2.35B
Net Income2.51B2.80B2.79B1.87B52.00M
Balance Sheet
Total Assets24.39B24.35B23.24B20.86B19.85B
Cash, Cash Equivalents and Short-Term Investments3.29B4.27B3.85B2.83B2.27B
Total Debt10.85B11.18B11.16B10.57B7.61B
Total Liabilities14.85B15.39B15.50B14.09B10.70B
Stockholders Equity9.18B8.64B7.45B6.53B8.94B
Cash Flow
Free Cash Flow2.06B2.51B2.67B2.15B1.96B
Operating Cash Flow2.78B3.51B3.90B3.08B2.48B
Investing Cash Flow-686.00M-1.51B-1.25B-934.00M-418.00M
Financing Cash Flow-2.66B-1.99B-1.62B-1.58B-835.00M

NXP Semiconductors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price224.43
Price Trends
50DMA
214.34
Positive
100DMA
202.28
Positive
200DMA
211.43
Positive
Market Momentum
MACD
3.46
Positive
RSI
53.78
Neutral
STOCH
54.88
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 224.43 is below the 20-day moving average (MA) of 225.56, above the 50-day MA of 214.34, and above the 200-day MA of 211.43, indicating a neutral trend. The MACD of 3.46 indicates Positive momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXPI.

NXP Semiconductors Risk Analysis

NXP Semiconductors disclosed 41 risk factors in its most recent earnings report. NXP Semiconductors reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may engage in acquisitions and other strategic transactions or make investments, or be unable to consummate planned strategic acquisitions, which could adversely affect our results of operations. Q4, 2024
2.
We rely on joint ventures to meet our current and future manufacturing requirements. However, we often do not control these partnerships and joint ventures, and actions taken by any of our partners or the termination of these joint ventures could adversely affect our business. Q4, 2024

NXP Semiconductors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$56.77B26.5523.11%1.81%-7.53%-21.88%
72
Outperform
$24.91B41.357.85%-18.28%-70.98%
71
Outperform
$28.48B27.133.72%0.96%-22.97%-78.58%
70
Outperform
$10.97B28.556.70%3.87%-12.90%-51.90%
69
Neutral
$63.17B-3.54%0.32%21.60%50.00%
64
Neutral
$37.91B84.25>-0.01%2.68%-42.35%-100.12%
57
Neutral
$897.91M11.67-16.27%2.28%10.33%-39.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXPI
NXP Semiconductors
224.43
-18.54
-7.63%
MRVL
Marvell
74.04
10.26
16.09%
MCHP
Microchip
67.81
-14.91
-18.02%
ON
ON Semiconductor
55.44
-12.10
-17.92%
SWKS
Skyworks Solutions
72.34
-36.46
-33.51%
STM
STMicroelectronics
26.73
-6.36
-19.22%

NXP Semiconductors Corporate Events

Shareholder MeetingsStock BuybackDividends
NXP Semiconductors Approves Interim Dividend Announcement
Neutral
Jun 12, 2025

On June 11, 2025, NXP Semiconductors held its annual general meeting where shareholders voted on several resolutions, including the adoption of the 2024 statutory annual accounts and the re-appointment of various board members. The board was also authorized to issue and repurchase shares, and E&Y Accountants B.V. was re-appointed as the independent auditor for 2025. Additionally, on June 12, 2025, the board approved an interim dividend of $1.014 per share, to be paid on July 9, 2025, to shareholders of record as of June 25, 2025.

The most recent analyst rating on (NXPI) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025