NXP Semiconductors (NXPI) AI Stock Analysis

• Market Cap: $56.77B
• Dividend Yield: 1.81%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.53
• Revenue Growth: -7.53%
• EPS Growth: -21.88%
• Country: US
• Employees: 33,100
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 2.72
• Shares Outstanding: 252,628,700
• 10 Day Avg. Volume: 2,942,829
• 30 Day Avg. Volume: 2,388,706
• PEG Ratio: -2.95
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.94
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 22.63
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $254.04
• Price Target Upside: 13.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 76 Outperform
• 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 Business Overview & Revenue Model

Company Description

NXP 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 Money

NXP 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.61B	13.28B	13.21B	11.06B	8.61B
Gross Profit	7.12B	7.55B	7.52B	6.07B	4.24B
EBITDA	4.42B	4.90B	5.04B	3.81B	2.35B
Net Income	2.51B	2.80B	2.79B	1.87B	52.00M
Balance Sheet
Total Assets	24.39B	24.35B	23.24B	20.86B	19.85B
Cash, Cash Equivalents and Short-Term Investments	3.29B	4.27B	3.85B	2.83B	2.27B
Total Debt	10.85B	11.18B	11.16B	10.57B	7.61B
Total Liabilities	14.85B	15.39B	15.50B	14.09B	10.70B
Stockholders Equity	9.18B	8.64B	7.45B	6.53B	8.94B
Cash Flow
Free Cash Flow	2.06B	2.51B	2.67B	2.15B	1.96B
Operating Cash Flow	2.78B	3.51B	3.90B	3.08B	2.48B
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 Price: 224.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	76 Outperform	$56.77B	26.55	23.11%	1.81%	-7.53%	-21.88%
ON	72 Outperform	$24.91B	41.35	7.85%	―	-18.28%	-70.98%
STM	71 Outperform	$28.48B	27.13	3.72%	0.96%	-22.97%	-78.58%
SWKS	70 Outperform	$10.97B	28.55	6.70%	3.87%	-12.90%	-51.90%
MRVL	69 Neutral	$63.17B	―	-3.54%	0.32%	21.60%	50.00%
MCHP	64 Neutral	$37.91B	84.25	>-0.01%	2.68%	-42.35%	-100.12%
Sector *	57 Neutral	$897.91M	11.67	-16.27%	2.28%	10.33%	-39.65%

NXP Semiconductors Corporate Events

NXP Semiconductors Approves Interim Dividend Announcement

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.