NXP Semiconductors (NXPI) AI Stock Analysis

• Market Cap: $56.91B
• Dividend Yield: 1.78%
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.48
• Revenue Growth: -7.53%
• EPS Growth: -21.88%
• Country: US
• Employees: 33,100
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.72
• Shares Outstanding: 252,114,600
• 10 Day Avg. Volume: 2,543,161
• 30 Day Avg. Volume: 2,372,429
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 5.27
• Enterprise Value/Gross Profit: 9.62
• Enterprise Value/Ebitda: 16.96
• 1Y Price Target: $255.35
• Price Target Upside: 12.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 76 Outperform
• Price Target: $262.00 ▲(15.08% Upside)

NXP Semiconductors shows strong financial performance and positive technical momentum, supported by optimistic earnings guidance. However, valuation concerns and revenue challenges temper the outlook. Investors should watch for continued cyclical improvements and strategic execution.

Positive Factors

Automotive Segment Stability

Stability in the automotive segment indicates resilience in a key market, driven by ongoing trends in vehicle safety and automation.

Industrial & IoT Segment Growth

Growth in the Industrial & IoT segment reflects strong demand for NXP's solutions in automation and smart technologies, supporting long-term revenue.

Strong Profitability

Consistent profitability margins indicate effective cost management and pricing power, enhancing financial stability and shareholder value.

Negative Factors

Declining Revenue

A decline in revenue suggests potential difficulties in market demand or competitive pressures, impacting long-term growth prospects.

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, affecting long-term financial health.

Communication Infrastructure Weakness

Weakness in the communication infrastructure segment could hinder overall growth, as it represents a significant part of NXP's business.

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 its semiconductor products, which are crucial for various applications in automotive, industrial, and consumer electronics. The company has a diversified revenue model, with key revenue streams coming from automotive semiconductors, including microcontrollers and sensors, which are essential for vehicle safety and automation. In addition, NXP earns significant income from its secure identification and mobile payment solutions, which are widely used in smartphones and contactless payment systems. Strategic partnerships with major technology firms and automotive manufacturers enhance its market presence and contribute to revenue stability. NXP also benefits from ongoing trends in electrification and automation within the automotive sector, which drive demand for its innovative semiconductor solutions.

NXP Semiconductors Financial Statement Overview

Summary

NXP Semiconductors maintains strong profitability with a Gross Profit Margin of 54% and a Net Profit Margin of 18%. However, challenges include a decline in Total Revenue and increased leverage with a high Debt-to-Equity Ratio of 1.15. Cash flows are robust but show a decline in operating cash, suggesting potential liquidity concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.12B	12.61B	13.28B	13.21B	11.06B	8.61B
Gross Profit	6.64B	7.12B	7.55B	7.52B	6.07B	4.24B
EBITDA	3.77B	4.42B	4.90B	5.04B	3.81B	2.35B
Net Income	2.15B	2.51B	2.80B	2.79B	1.87B	52.00M
Balance Sheet
Total Assets	25.25B	24.39B	24.35B	23.24B	20.86B	19.85B
Cash, Cash Equivalents and Short-Term Investments	2.87B	3.29B	4.06B	3.62B	2.83B	2.27B
Total Debt	10.73B	10.85B	11.18B	11.16B	10.57B	7.61B
Total Liabilities	15.31B	14.85B	15.39B	15.50B	14.09B	10.70B
Stockholders Equity	9.57B	9.18B	8.64B	7.45B	6.53B	8.94B
Cash Flow
Free Cash Flow	2.12B	2.06B	2.51B	2.67B	2.15B	1.96B
Operating Cash Flow	2.45B	2.78B	3.51B	3.90B	3.08B	2.48B
Investing Cash Flow	-1.26B	-686.00M	-1.51B	-1.25B	-934.00M	-418.00M
Financing Cash Flow	-867.02M	-2.66B	-1.99B	-1.62B	-1.58B	-835.00M

NXP Semiconductors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.66
• 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 227.66 is above the 20-day moving average (MA) of 225.61, above the 50-day MA of 223.20, and above the 200-day MA of 209.39, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 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	$56.91B	26.68	23.11%	1.78%	-7.53%	-21.88%
SWKS	74 Outperform	11.97B	32.38	9.41%	3.48%	-8.24%	-48.31%
MRVL	69 Neutral	69.05B	-632.12	-0.77%	0.30%	37.05%	89.40%
ON	68 Neutral	20.83B	47.53	5.87%	―	-17.93%	-75.83%
STM	67 Neutral	25.89B	41.78	3.66%	1.19%	-22.97%	-78.58%
MCHP	55 Neutral	35.54B	-198.05	-2.16%	2.76%	-35.70%	-113.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NXP Semiconductors Corporate Events

NXP Semiconductors Executes $1.5 Billion Senior Notes Offering

On August 12, 2025, NXP Semiconductors and its affiliates executed an underwriting agreement with several underwriters for the public offering of senior notes totaling $1.5 billion, with different maturity dates in 2028, 2032, and 2035. The proceeds from this offering are intended to redeem existing senior unsecured notes due in 2026, with any remaining funds to be used for general corporate purposes, potentially impacting the company’s financial strategy and market positioning.

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.