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With a market cap of $53.6 billion, NXP Semiconductors N.V. (NXPI) is a leading provider of high-performance mixed-signal and standard semiconductor solutions, specializing in RF, analog, power management, security, and digital processing. Based in Eindhoven, Netherlands, it operates globally, serving OEMs, contract manufacturers, and distributors across key regions like the U.S., China, and Germany.
Shares of the chipmaker have underperformed the broader market over the past 52 weeks. NXPI stock has declined 9.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.7%. However, shares of NXPI are up 3.5% on a YTD basis, outpacing SPX's 2.2% gain.
In addition, NXP Semiconductors has also lagged behind the Technology Select Sector SPDR Fund's (XLK) 13.2% return over the past 52 weeks.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $3.18 and revenue of $3.1 billion, shares of NXPI fell 1.1% the next day due to weaker-than-expected guidance for Q1 2025. The company projected revenues between $2.7 billion - $2.9 billion, reflecting a 6% - 13% year-over-year decline, which was below investor expectations. Additionally, its forecasted adjusted EPS of $2.39 - $2.79 indicated a sharper-than-expected 17.6% decline, raising concerns about slowing demand. Weakness in key segments like Industrial & IoT and Communication Infrastructure, both missing consensus estimates, further dampened investor sentiment despite the strong automotive performance.
For the current fiscal year, ending in December 2025, analysts expect NXPI's EPS to decline 10.8% year-over-year to $10.29. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 27 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
This configuration is more bullish than three months ago, with 16 “Strong Buy” ratings on the stock.
On Feb. 12, Morgan Stanley analyst Joseph Moore upgraded NXPI to a “Buy” with a $257 price target, citing expected outperformance in automotive semiconductors by 2025 as shipment constraints ease, operational improvements, and a recovering microcontroller market.
As of writing, NXPI is trading below the mean price target of $246.52. The Street-high price target of $300 implies a potential upside of 37.7% from the current price levels.
