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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:
$262.00
▲(14.81% 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
Auto Sector Positioning
NXPI’s auto portfolio is ideally situated to capture robust content gains in the shift to software-defined vehicles, EVs, ADAS.
Market Recovery
NXP sees both core and consumer-oriented industrial markets recovering, evidenced by channel partner backlog and order escalations up 2x Q/Q.
Revenue Guidance
NXPI guided 3Q25 revenue to $3.15 billion, above our estimate and Consensus due to strength from the Auto/Industrial end markets.
Negative Factors
Competition in China
Competition in China from local vendors is an ongoing risk, but NXPI’s China-for-China manufacturing strategy is a mitigant.
Recovery Expectations
Recovery is ongoing, but not as sharp as some expectations, which could affect investor sentiment.
Trade Friction
Trade friction could upend 2H for NXP and peers, but for now cyclical signals point to cautious optimism.

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

NXP Semiconductors Business Overview & Revenue Model

Company DescriptionNXP 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 MoneyNXP 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 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 decline after a peak in late 2023, reflecting broader cyclical challenges. However, the earnings call indicates optimism with expected growth in key segments like Automotive and Industrial & IoT, driven by strategic acquisitions and a recovering cycle. Despite a year-on-year revenue decline, effective inventory management and positive cyclical trends suggest potential for recovery. The OEM and EMS channels face pressure, but the company's strategic focus on growth drivers could mitigate risks.
Data provided by:Main Street Data

NXP Semiconductors Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautiously optimistic outlook with signs of cyclical recovery across core markets, particularly in automotive and industrial segments. Despite a year-on-year revenue decline and challenges in communication infrastructure, NXP's positive revenue guidance and strategic management of inventory and operating expenses suggest a potential turnaround.
Q2-2025 Updates
Positive Updates
Q2 Revenue Surpasses Guidance
NXP's Q2 revenue was $26 million better than the midpoint of guidance, totaling $2.93 billion, despite a 6% decrease year-on-year.
Improved Q3 Revenue Guidance
NXP is guiding Q3 revenue to $3.15 billion, representing an 8% sequential increase and down 3% versus Q3 2024, indicating a return to better than historic seasonal trends.
Positive Cyclical Trends in Core Markets
NXP noted increasingly positive cyclical trends across all focus end markets, with improved order signals and customer backlog levels.
Non-GAAP Operating Margin Exceeds Expectations
Q2 non-GAAP operating margin was 32%, 20 basis points above the midpoint of guidance.
Automotive Segment Stability
Automotive revenue is expected to be flat versus Q3 2024 and up in the mid-single-digit percent range versus Q2 2025.
Industrial & IoT Segment Growth
Industrial & IoT is expected to be up in the mid-single-digit range year-on-year and up in the high single-digit range versus Q2 2025.
Negative Updates
Year-on-Year Revenue Decline
Q2 revenue decreased by 6% year-on-year, reflecting challenges in maintaining previous growth levels.
Non-GAAP Operating Margin Decrease
Non-GAAP operating margin was down 230 basis points year-on-year due to lower revenue and related gross profit fall-through.
Communication Infrastructure Segment Weakness
Communication infrastructure and other segments are expected to be down in the upper 20% range versus Q3 2024.
Continued Inventory Challenges
Channel inventory remained at 9 weeks, below the long-term target of 11 weeks, indicating ongoing distribution challenges.
Company Guidance
During the NXP Q2 2025 earnings call, the company provided guidance for the third quarter, reflecting an emerging cyclical improvement in its core end markets and specific growth drivers. NXP expects Q3 revenue to reach $3.15 billion, representing a 3% decline year-on-year but an 8% sequential increase, surpassing historical seasonal trends. Segment expectations include automotive revenue remaining flat compared to Q3 2024 but increasing in the mid-single-digit percent range compared to Q2 2025. The Industrial & IoT segment is projected to grow in the mid-single-digit range year-on-year and in the high single-digit range sequentially. The mobile segment is anticipated to rise in the low single-digit range year-on-year and jump in the mid-20% range sequentially, while the communication infrastructure and other segments are expected to decline in the upper 20% range year-on-year and remain flat sequentially. The company plans to maintain channel inventory at nine weeks, with the potential for selective increases if the cyclical recovery continues. NXP also highlighted ongoing efforts to align its wafer fabrication footprint with its hybrid manufacturing strategy and emphasized its focus on driving solid profitability and earnings.

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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.12B12.61B13.28B13.21B11.06B8.61B
Gross Profit6.64B7.12B7.55B7.52B6.07B4.24B
EBITDA3.77B4.42B4.90B5.04B3.81B2.35B
Net Income2.15B2.51B2.80B2.79B1.87B52.00M
Balance Sheet
Total Assets25.25B24.39B24.35B23.24B20.86B19.85B
Cash, Cash Equivalents and Short-Term Investments2.87B3.29B4.06B3.62B2.83B2.27B
Total Debt10.73B10.85B11.18B11.16B10.57B7.61B
Total Liabilities15.31B14.85B15.39B15.50B14.09B10.70B
Stockholders Equity9.57B9.18B8.64B7.45B6.53B8.94B
Cash Flow
Free Cash Flow2.12B2.06B2.51B2.67B2.15B1.96B
Operating Cash Flow2.45B2.78B3.51B3.90B3.08B2.48B
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 Price228.20
Price Trends
50DMA
224.02
Positive
100DMA
209.35
Positive
200DMA
210.18
Positive
Market Momentum
MACD
4.58
Negative
RSI
56.09
Neutral
STOCH
68.01
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 228.2 is above the 20-day moving average (MA) of 225.55, above the 50-day MA of 224.02, and above the 200-day MA of 210.18, indicating a bullish trend. The MACD of 4.58 indicates Negative momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 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 0 New Risks

NXP Semiconductors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$59.21B27.4923.11%1.74%-7.53%-21.88%
74
Outperform
$11.12B29.116.61%3.82%-8.24%-48.31%
69
Neutral
$20.28B45.665.72%-17.93%-75.83%
66
Neutral
$24.06B38.303.72%1.16%-22.97%-78.58%
61
Neutral
$35.09B8.26-10.59%1.90%8.56%-9.51%
61
Neutral
$54.20B-0.75%0.37%37.05%89.40%
53
Neutral
$35.08B84.25-2.24%2.88%-35.70%-113.08%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXPI
NXP Semiconductors
228.20
-6.28
-2.68%
MRVL
Marvell
62.31
-8.33
-11.79%
MCHP
Microchip
63.28
-11.42
-15.29%
ON
ON Semiconductor
47.79
-22.74
-32.24%
SWKS
Skyworks Solutions
73.56
-25.15
-25.48%
STM
STMicroelectronics
25.80
-3.64
-12.36%

NXP Semiconductors Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
NXP Semiconductors Executes $1.5 Billion Senior Notes Offering
Neutral
Aug 18, 2025

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.

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.

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: Aug 19, 2025