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NXP Semiconductors N.V. (NXPI), valued at $55.2 billion by market cap, is a leading provider of high-performance mixed signal and standard semiconductor solutions. Headquartered in the Netherlands, the company’s products serve diverse industries, including automotive, wireless infrastructure, lighting, industrial, mobile, consumer, and computing.
Shares of the chipmaker have underperformed the broader market over the past 52 weeks. NXPI has gained 8.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.4%. In 2024, shares of NXPI are down 5.5%, lagging behind SPX's 23.1% gain on a YTD basis.
Zooming in further, NXPI has also struggled to keep up with the S&P Semiconductor SPDR's (XSD) 14.2% returns over the past 52 weeks and marginally in 2024.
NXP Semiconductors shares fell by more than 3% on Nov. 11, contributing to the broader decline in chip stocks.
Moreover, the company posted its Q3 earnings on Nov. 4, and its shares plunged more than 5% in the following trading session. While its adjusted EPS of $3.45 surpassed the market’s expectations, its revenue of $3.25 billion was in line with Street forecasts. For the upcoming quarter ending in December, NXP anticipates earnings of $2.93 per share, with revenue expected to range between $3 billion and $3.2 billion.
For the current fiscal year, ending in December, analysts expect NXPI's EPS to decline 10.5% year over year to $11.37. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, missing on another occasion.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” seven “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 15 analysts giving it a “Strong Buy” rating.
On Nov. 12, Loop Capital initiated coverage of NXP Semiconductors with a “Buy” rating and a $300 price target. The firm noted that while NXP, like other automotive-focused semiconductor companies, has been a consensus short since late 2023 due to inventory reductions by automotive tier-ones, the stock remains a strong pick. Despite cyclical headwinds, Loop Capital believes NXP is well-positioned to benefit from the fast-growing automotive sector, making it a favorable choice for investors focused on automotive growth trends.
The mean price target of $264.35 represents a premium of 21.8% from NXPI's current levels. The Street-high price target of $315 implies an impressive potential upside of 45.1%.
