NXP Semiconductors (NXPI) AI Stock Analysis

• Market Cap: $51.94B
• Dividend Yield: 1.97%
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.56
• 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: 2,775,185
• 30 Day Avg. Volume: 2,441,653
• 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: 1.28
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 10.09
• Enterprise Value/Ebitda: 18.42
• 1Y Price Target: $251.79
• Price Target Upside: 22.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 65 Neutral
• Price Target: $229.00 ▲(10.96% Upside)

NXP Semiconductors' overall score reflects strong profitability and operational efficiency, tempered by recent revenue declines and high leverage. The earnings call provided a mixed outlook with positive sequential growth but highlighted challenges such as declining margins and inventory issues. Technical indicators suggest weak momentum, and the valuation is moderate, offering limited upside potential.

Positive Factors

Strategic Acquisitions

The acquisitions of Kinara and Aviva Links are expected to significantly contribute to revenue growth by 2028, supporting NXP's strategic focus on intelligent edge systems, which enhances its competitive position in the market.

Industrial and IoT Segment Growth

Strong growth in the Industrial and IoT segment indicates robust demand for NXP's products in these areas, which supports long-term revenue expansion and diversification across multiple sectors.

Innovative Product Development

The new battery management chipset enhances safety and performance in electric vehicles, positioning NXP as a leader in innovative solutions for the growing EV market, which is crucial for long-term growth.

Negative Factors

Year-over-Year Revenue Decline

A decline in year-over-year revenue suggests potential challenges in market expansion or demand, which could impact NXP's growth trajectory if not addressed.

High Leverage

High leverage can strain financial flexibility and increase risk, particularly if market conditions worsen, affecting NXP's ability to invest in growth opportunities.

Operating Margin Decrease

A decrease in operating margin indicates rising costs or pricing pressures, which could affect profitability if not managed effectively over the long term.

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 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	3.61B	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: Negative
• Last Price: 206.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXPI, the sentiment is Negative. The current price of 206.38 is below the 20-day moving average (MA) of 217.95, below the 50-day MA of 223.19, and below the 200-day MA of 210.65, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXPI.

NXP Semiconductors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ON	―	$20.80B	47.44	5.72%	―	-17.93%	-75.83%
MRVL	―	$76.36B	―	-0.75%	0.27%	37.05%	89.40%
TXN	―	$145.84B	29.24	29.60%	3.43%	9.90%	1.65%
NXPI	―	$51.94B	25.14	21.19%	1.97%	-6.81%	-23.16%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	―	$22.07B	43.39	3.00%	1.42%	-17.33%	-76.71%
MCHP	―	$33.50B	―	-2.24%	2.93%	-35.70%	-113.08%

NXP Semiconductors Corporate Events

NXP Semiconductors Reports Q3 2025 Financial Results

NXP Semiconductors N.V. is a global leader in the semiconductor industry, providing innovative solutions across automotive, industrial & IoT, mobile, and communications infrastructure markets. The company is known for its cutting-edge technology and commitment to enhancing the connected world.

NXP Semiconductors’ Earnings Call: Mixed Results and Optimistic Outlook

The recent earnings call for NXP Semiconductors painted a mixed picture of the company’s current standing and future prospects. While there were notable achievements such as positive sequential revenue growth and strong performance in the Industrial and IoT segment, challenges remain with a year-over-year revenue decline, a decrease in operating margin, and underperformance in certain segments. Additionally, inventory levels are still below target, reflecting a cautious market sentiment.

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.

The most recent analyst rating on (NXPI) stock is a Buy with a $248.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.

NXP Semiconductors Completes $1.5 Billion Senior Notes Offering

On August 19, 2025, NXP Semiconductors and its subsidiaries completed a public offering of senior notes totaling $1.5 billion, with varying maturity dates in 2028, 2032, and 2035. The proceeds from this offering are intended to redeem existing notes due in 2026 and may also be used for general corporate purposes, impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (NXPI) stock is a Buy with a $262.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.

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.

The most recent analyst rating on (NXPI) stock is a Buy with a $265.00 price target. To see the full list of analyst forecasts on NXP Semiconductors stock, see the NXPI Stock Forecast page.