NXP Semiconductors (NASDAQ:NXPI) Stock, Quote.Headers.trade-ideas

NXP Semiconductors

NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.

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Nvidia stock gets top headlines for the week with second-quarter earnings coming Wednesday. An analyst breaks out the top semiconductor stocks.

Nvidia Stock, Semiconductor Sector Split Between AI Winners And Losers: Analyst Says &#39;Stick With AI First And Foremost&#39;

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Taiwan Semiconductor broke ground on its first European plant in Dresden with 10 billion euros in funding, aiming to produce chips for auto and industrial sectors.

Taiwan Semiconductor&#39;s $11B German Fab Kicks Off with Major Industry Support

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TSM plans $11B plant in Germany with Infineon, NXP, Bosch. To start production late 2027. TSM dedicates $29.62B to supply AI chips; stock up 90%.

Taiwan Semiconductor Expands to Europe with $11B Chip Plant in Germany: Report

NXP Semiconductors NV

<a href="https://press.aboutamazon.com/aws/2024/9/nxp-semiconductors-selects-aws-to-drive-the-next-era-of-semiconductor-innovation" title="https://press.aboutamazon.com/aws/2024/9/nxp-semiconductors-selects-aws-to-drive-the-next-era-of-semiconductor-innovation">https://press.aboutamazon.com/aws/2024/9/nxp-semiconductors-selects-aws-to-drive-the-next-era-of-semiconductor-innovation</a>

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'NXP Semiconductors Selects AWS to Drive the Next Era of Semiconductor Innovation' - Amazon

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Shares of semiconductor and chip stocks are trading higher following Wednesday's rate cut, which has lifted growth stocks and rate-sensitive sectors such as tech.

Shares of semiconductor stocks are trading higher amid strong recent economic data and in possible sympathy with Nvidia following CEO Jensen Huang's recent comments on demand and after Vice President Harris spoke of investment in American-based companies to win the technology race during the Presidential Debate.

NXP Semiconductors (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) has outperformed the market over the past 10 years by 1.93% on an annualized basis producing an average annual return of 12.63%. Currently, NXP Semiconductors has a market capitalization of $58.74 billion. 
Buying $1000 In NXPI: If an investor had bought $1000 of NXPI stock 10 years ago, it would be worth $3,367.42 today based on a price of $230.59 for NXPI at the time of writing.
<h3>NXP Semiconductors's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726090249_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning NXP Semiconductors Stock In The Last 10 Years

NXP Semiconductors N.V.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) today announced the Trimension&#xAE; SR250, the industry's first single-chip solution that integrates on-chip processing capabilities with both short-range UWB radar and secure ranging. This is the next leap forward in NXP's work to enable a world that anticipates and automates, enabling a wide variety of new user experiences based on location, presence or motion detection across consumer or industrial IoT applications.
The Trimension SR250 combines low-power short-range UWB radar operating at 6-8.5 GHz, secure ranging and angle-of-arrival (AoA) calculations to enable new use cases based on UWB mapping, human or object detection and secure positioning. This allows it to deliver convenience, efficiency, safety and privacy features in a smart home, such as turning lights or TVs on or off based on presence, enabling secure home access capabilities, or even monitoring the safety of an elderly person living alone without intrusive cameras. It also supports safety, security and productivity applications in industrial environments, being capable of tracking location for workers, goods or assets, access control, collision avoidance, danger zone detection and more.

NXP's New Chip Combines UWB Radar and Secure Ranging for Smarter, Safer Homes and Workplaces

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Shares of semiconductor, hardware and AI-linked stocks are trading lower as the sector continues to pull back. Chip stocks may also be down in sympathy with Broadcom, which fell after reporting earnings.

Vanguard International Semiconductor Corporation (VIS, TPEx 5347) and NXP Semiconductors N.V. ((NXP, NASDAQ:<a href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) today announced that they have obtained all necessary approvals from relevant authorities and injected capital to officially establish the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) joint venture. The company will now proceed with the planned construction of VSMC's first 300mm wafer manufacturing facility. &nbsp;
VIS and NXP announced on June 5 this year plans to establish the VSMC joint venture in Singapore to build a 300mm wafer fab with a total investment of approximately $7.8 billion.

Vanguard and NXP Secure Approval for $7.8B 300mm Wafer Fab Joint Venture

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Shares of semiconductor stocks are trading lower amid overall market weakness. A drop in the price of NVIDIA may weigh down the sector.

Shares of chip stocks are trading higher in possible sympathy with Marvell, which rose after strong Q2 financial results.

consistent with NXP&#39;s historic policy of returning excess cash flow to shareholders, the board of directors has also approved an additional $2 billion authorization to its existing share repurchase program. The new $2 billion share repurchase authorization is in addition to the approximately $726 million currently remaining for repurchase under the existing share repurchase authorization.

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NXP Semiconductors Approves Share Repurchase Authorization Of An Addition $2B To Its Existing Share Repurchase Program

Shares of semiconductor and chip stocks are trading higher in possible reaction to NVIDIA's earnings report. NVIDIA fell despite better-than-expected financial results.

With NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) earnings in focus this week, analysts highlight key trends including the rise of artificial intelligence, strong demand from China, and geopolitical restrictions as crucial drivers for <a href="https://www.benzinga.com/topic/semiconductors">the semiconductor industry.</a>
Nvidia Earnings: Analysts expect Nvidia to report revenue of $28.7 billion for the second quarter, compared to $13.5 billion reported in last year's second quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082624&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>
The company has beaten revenue estimates in eight straight quarters and nine of the last 10 quarters.
Analysts see Nvidia reporting second-quarter earnings per share of 64 cents compared to 27 cents in last year's second quarter. The company has beat earnings estimates from analysts in six straight quarters and eight of the last 10 quarters.
Cantor Fitzgerald analyst C.J. Muse calls Nvidia one of the top picks for the second half of 2024 ahead of the earnings report.
"Stick with AI first and foremost," Muse said of the semiconductor sector.
Muse said when it comes to semiconductor companies and AI, "you either have it or you don't."
"2Q continued to show a divergence between the haves and have-nots, with anything AI-related thriving, while other areas remain in the cyclical doldrums."
The analyst sees China demand showing relative strength, which could be a positive for Nvidia and the sector. Geopolitical tentions that are at the forefront of investor concerns appear to have a minimal impact on the companies based on results and guidance, the analyst said.
Muse said the delay of Nvidia's Blackwell is a real concern, but not on the level some are expecting.
"A 1-2 month delay makes little to no difference to our thesis on the name. Demand remains robust and supply remains tight."
Muse said the Blackwell concerns being overdone makes Nvidia's valuation "too cheap to ignore."
Read Also: <a href="https://www.benzinga.com/top-stories/24/08/40534794/nvidia-is-next-weeks-top-stock-market-strategist-says-why-best-long-term-idea-is-just-buy-nvidia-and">Nvidia Is Next Week&#8217;s Top Stock, Market Strategist Says: Why Best Long-Term Idea Is &#8216;Just Buy Nvidia And Put It Away&#8217;</a>
Other Semiconductor Picks: Muse highlights Nvidia as a top winner in the semiconductor sector for the second half of 2024 alongside Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>), NXP Semiconductors (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>), ASML Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Teradyne Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) as top picks.
Broadcom, Micron, Teradyne and Marvell Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) are highlighted as likely outperformers for the AI theme according to the analyst.
"Spending patterns remain robust and we see no slowdown over the mid-term given criticality of investments. This group saw some of the greatest pullbacks during the recent SOX rollercoaster," Muse said of NVDA, AVGO, MU, MRVL and TER as AI picks.
The analyst mentions Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) as a potential value pick with its book value attractive, but not enough catalysts to drive upside for the stock.
"One would have to believe risk/reward is biased higher, and this will be an argument many make here."
Muse said this is the cheapest Intel has traded on a book value basis over the last three decades. "At the same time, the company is facing meaningful structural headwinds today and a still very uphill battle to regain its footing," Muse adds.
NVDA Price Action: Nvidia shares are down 3% to $126.90 on Monday, versus a 52-week trading range of $39.23 to $195.95. Nvidia stock is up over 150% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082624&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="995" height="505" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143.png" alt="" class="wp-image-514297" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143.png 995w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143-300x152.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26140932/Screenshot-143-768x390.png 768w" sizes="(max-width: 995px) 100vw, 995px" /></a></figure>
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40524164/nvidia-earnings-more-important-than-jerome-powells-jackson-hole-speech-for-wall-str">Nvidia Earnings &#8216;More Important&#8217; Than Jerome Powell&#8217;s Jackson Hole Speech For Wall Street, Says Expert: &#8216;Not Even Going To Tell You What He&#8217;s Going To Do After That…&#8217;</a></li>
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Photo: Shutterstock

Nvidia Stock, Semiconductor Sector Split Between AI Winners And Losers: Analyst Says 'Stick With AI First And Foremost'

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Shares of semiconductor stocks are trading higher amid overall market strength following Fed Chair Powell's comments about the economy and future rate cuts.

NXP Semiconductors (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) has outperformed the market over the past 10 years by 3.75% on an annualized basis producing an average annual return of 14.57%. Currently, NXP Semiconductors has a market capitalization of $65.47 billion. 
Buying $1000 In NXPI: If an investor had bought $1000 of NXPI stock 10 years ago, it would be worth $3,849.10 today based on a price of $257.01 for NXPI at the time of writing.
<h3>NXP Semiconductors's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724270420_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 10 Years Ago, You Would Have $3,800 Today

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) broke ground in eastern Germany on its first European plant, marking the construction of the 10 billion euros ($11 billion) fab in Dresden. The state subsidies will fund close to half of the total expenditure.
The EU approved Germany&#8217;s 5 billion euro subsidy for the Dresden fab, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-19/amd-to-acquire-server-maker-zt-systems-in-4-9-billion-deal?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> European Commission President&nbsp;Ursula von der Leyen at the event.
Taiwan Semiconductor has a 70% stake in the plant, which will produce chips for the automotive and industrial sectors.
Taiwan Semiconductor Chief C.C. Wei&nbsp;attended the event jointly with von der Leyen, German Chancellor Olaf Scholz, and the chiefs of&nbsp;Infineon Technologies AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/IFNNF#OTC">IFNNF</a>),&nbsp;NXP Semiconductors NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>), and&nbsp;Robert Bosch GmbH, which each hold a 10% stake in the venture, the Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-breaks-ground-on-first-Europe-chip-fab-with-eye-on-auto-sector" rel="noreferrer noopener">reports</a>.
<a target="_blank" href="https://www.benzinga.com/government/24/08/40463824/taiwan-semiconductor-expands-to-europe-with-11b-chip-plant-in-germany-report" rel="noreferrer noopener">In August 2023</a>, Taiwan Semiconductor, Bosch, Infineon, and NXP Semiconductors initiated the European Semiconductor Manufacturing Company (ESMC). Bosch&#8217;s Christian Koitzsch headed ESMC.
EMSC is considering hiring close to 2,000 employees. Taiwan Semiconductor proposes sending hundreds of engineers to Dresden over the next three to five years.
Scholz&#8217;s government plans to spend 20 billion euros in investment to drive&nbsp;domestic chip production, including&nbsp;the Taiwan Semiconductor plant, and 10 billion euros in aid for a planned Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) plant in Magdeburg.
<h2 class="wp-block-heading">Will Taiwan Semiconductor Stock Go Up?</h2>
When trying to assess whether or not Taiwan Semiconductor will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $217.5 on Taiwan Semiconductor. The Street high target is currently at $250.0 and the Street low target is $170.0. Of all the analysts covering Taiwan Semiconductor, 8 have positive ratings, no one has neutral ratings and no one has negative ratings.
In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/TSM/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Taiwan Semiconductor have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Taiwan Semiconductor is 69.18% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Taiwan Semiconductor, visit <a href="https://www.benzinga.com/quote/TSM">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action: TSM stock traded lower by 0.23% at $171.65 at the last check on Wednesday.
Photo via Shutterstock

Taiwan Semiconductor's $11B German Fab Kicks Off with Major Industry Support

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) looks to break ground on its first European 12-inch plant in Dresden, Germany, worth 10 billion euros ($11 billion)&nbsp;&nbsp;in partnership with&nbsp;Infineon Technologies AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/IFNNF#OTC">IFNNF</a>),&nbsp;NXP Semiconductors NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) and&nbsp;Robert Bosch GmbH, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/videos/2024-08-20/chip-giant-tsmc-to-help-build-11-billion-german-plant-video?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
The facility, with an initial monthly capacity of 40,000 wafers, plans to launch 28 nm or 22 nm planar CMOS (complementary metal-oxide-semiconductor) technology and 16 nm or 12 nm FinFET (fin field-effect transistor) processes, TechNode <a target="_blank" href="https://technode.com/2024/08/19/tsmc-to-break-ground-on-first-european-12-inch-plant-in-dresden-germany-tomorrow/" rel="noreferrer noopener">cites</a> Economic Daily News.
In August 2023, Taiwan Semiconductor, Bosch, Infineon, and NXP Semiconductors formed the European Semiconductor Manufacturing Company (ESMC), with each firm holding a 10% stake.
Also Read: <a target="_blank" href="https://www.benzinga.com/m-a/24/08/40437227/taiwan-semiconductor-acquires-tainan-facility-for-531m-plans-major-expansion" rel="noreferrer noopener">Taiwan Semiconductor Acquires Tainan Facility For $531M, Plans Major Expansion</a>
The German plant will operate under ESMC and will likely start by late 2027.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/20045553/newplot-16.png" alt="" class="wp-image-503023" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/20045553/newplot-16.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/20045553/newplot-16-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Taiwan Semiconductor, a key supplier of Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), remains dedicated to its objective of supplying artificial intelligence chips, boosting its <a target="_blank" href="https://www.benzinga.com/m-a/24/08/40437227/taiwan-semiconductor-acquires-tainan-facility-for-531m-plans-major-expansion" rel="noreferrer noopener">capital expenditure to&nbsp;$29.62 billion</a>.
Meanwhile, separate reports indicate the semiconductor industry is battling multiple constraints, such as escalating geopolitical tensions between the U.S. and China, <a target="_blank" href="https://www.benzinga.com/news/24/08/40336403/taiwan-semiconductors-ai-growth-trajectory-could-hit-a-bump-from-workforce-challenges-report" rel="noreferrer noopener">workforce shortage</a>, and a groundwater crisis, as it expands its geographies beyond Taiwan.
Taiwan Semiconductor is amid attempts to preserve groundwater in Japan by flooding unused paddy fields to evade concerns surrounding its ambitious chip factories in Kumamoto prefecture, the Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Technology/Water-pressure-TSMC-others-tackle-groundwater-worries-in-Kumamoto" rel="noreferrer noopener">reports</a>.
Taiwan Semiconductor stock gained 90% in the last 12 months. Investors can gain exposure to the stock through SPDR MSCI ACWI ex-US ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CWI#NYSE">CWI</a>) and SPDR NYSE Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XNTK#NYSE">XNTK</a>).
Price Action: TSM shares traded lower by 0.63% at $174.35 at the last check on Tuesday.
Photo by Ivan Marc via Shutterstock

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Shares of semiconductor stocks are trading higher amid overall market strength as stock rebound following upbeat US economic data, which could be alleviating recession worries.

NXP Semiconductors&#39; (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nxpi#NASDAQ">NXPI</a>) shares have lost 12.2% in a month against the industry, the Zacks Computer &amp; Technology sector and the S&amp;P 500 index&#39;s declines of 14.2%, 10% and 5.4%, respectively.
The NXPI stock is also currently trading below its 50-day moving average, indicating a bearish trend.
The company has been suffering from broad-based inventory digestion by its key customers, which makes its near-term prospects foggy. Due to inventory corrections, it also reported weak second-quarter 2024 results, wherein both earnings and revenues declined 6.7% and 5% on a year-over-year basis, respectively.
Growing macroeconomic uncertainties, high inflation and rising geo-political tensions are other headwinds for the company.
<h3>NXPI Shares Trading Below 50-Day SMA</h3>
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Image Source: Zacks Investment Research
NXP Semiconductors faces stiff competition from other well-established players in the semiconductor space, including Analog Devices (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adi#NASDAQ">ADI</a>), Infineon Technologies, Intel (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>), Mediatek, Microchip, NVIDIA, Qualcomm, Renesas Electronics, STMicroelectronics and Texas Instruments (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/txn#NASDAQ">TXN</a>). This poses a serious threat to its market position and huge pricing pressure on it.
Nevertheless, NXPI&#39;s strong portfolio of semiconductor products, including microcontrollers, application processors, communication processors, connectivity chipsets, analog and interface devices, RF power amplifiers, security controllers and sensors, is expected to boost its long-term prospects in the automotive, industrial &amp; Internet of Things (IoT), mobile and communication infrastructure end-markets.
<h3>One-Month Price Performance</h3>
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Image Source: Zacks Investment Research
Given the combination of risks and rewards, the critical question arises: should investors buy, hold or sell NXP Semiconductors shares now?
<h3>Mega Industry Trends Drive Long-Term Growth</h3>
The semiconductor industry has been staging a solid rebound on growing demand and the optimism surrounding artificial intelligence. NXPI is well-positioned to capitalize on this trend on the back of its portfolio strength.
Growing preference for smart and connected electronic equipment, and increased use of high-performance edge and media devices and low-power IoT nodes are expected to continue driving the demand for NXP Semiconductors&#39; wide range of sensors, processors, connectivity and secure solutions. Also, increasing demand for connected devices and smart home products is likely to boost the company&#39;s prospects in the industrial and IoT market over the long haul.
The growing proliferation of automobile electrification is a positive. Thanks to this, electric vehicle makers are increasingly adopting NXP Semiconductors&#39; electrification solutions and radar systems. EV OEMS are also introducing software-defined vehicle solutions that are driving demand for its high-performance processes.
Solid demand for technologically advanced products with increased safety, dependability, comfort and efficiency bodes well for NXPI&#39;s automotive business. The company&#39;s strong investments to expand its analog and interface product offerings to capitalize on the increasing electronic content in automobiles, remain noteworthy.
The solid adoption of 5G and growing demand for cloud solutions present a significant opportunity for NXPI. The rising requirement for better digital communication capabilities and digital content is another positive. NXP Semiconductors is well-poised to capitalize on this trend on the back of its strength in RF power for base stations, and robust communication processors and wireless connectivity solutions.
These favorable trends, along with a strong product portfolio, are expected to drive NXPI&#39;s top-line growth in the long haul. The Zacks Consensus Estimate for 2025 revenues is pegged at $13.97, indicating year-over-year growth of 8.1%.
<h3>Inventory Correction &amp; Geo-Political Tensions Hurt Near-Term Prospects</h3>
NXP Semiconductors is facing significant challenges in two of its key markets &mdash; automotive and communication infrastructure.
In second-quarter 2024, it witnessed a 7% year-over-year fall in its automotive revenues, which accounts for the majority of the total revenues. Increased inventory correction by direct Tier 1 customers was the primary factor behind this.
NXPI also witnessed a year-over-year decline of 23% in its communication infrastructure revenues. This was also due to broad-based inventory correction.
From a channel perspective, the company&#39;s distribution inventory was 1.7 months in the second quarter. It continues to operate well below its long-term target of 2.5 months of inventory in the channel.
In the second half of 2024, NXP Semiconductors expects the inventory digestion process at select direct Tier 1 auto customers to extend. It anticipates shipment to be below the automotive end demand, which, in turn, makes its prospects in the automotive market bleak for 2024.
For third-quarter 2024, NXPI expects automotive revenues to be down in the low-single-digit percent range from the year-ago quarter&#39;s reported level.
Moreover, escalating tensions between the United States and China do not bode well for the semiconductor companies. Stricter export policies in China are acting as major headwinds.
<h3>Downward Estimate Revision at a Glance</h3>
The macro challenges surrounding the near-term prospects of NXPI Semiconductors are expected to hurt its financial performance in 2024. This is reflected in the downward estimate revision.
For third-quarter 2024, NXPI expects revenues of $3.150-$3.350 billion, indicating a year-over-year fall of 5% at the mid-point. The Zacks Consensus Estimate for the same is pegged at $3.25 billion, suggesting a year-over-year decline of 5.3%.
The company anticipates non-GAAP earnings of $3.21-$3.63 per share. The consensus mark for the same stands at $3.44, indicating a year-over-year fall of 7%. The estimate has been revised downward by 5.2% over the past 30 days.
For 2024, the Zacks Consensus Estimate for revenues is pegged at $12.92 billion, suggesting a year-over-year dip of 2.7%.
The consensus mark for 2024 earnings is pegged at $13.58 per share, indicating a year-over-year decline of 3.1%. The estimate has moved south by 3% over the past 30 days.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/46/74345.jpg?v=1582675112" style="border-style:solid; border-width:1px" />
Image Source: Zacks Investment Research
Moreover, NXPI has a Value Score of F and a Growth Score of C at present, which is hard to ignore.
<h3>Conclusion</h3>
Given the combination of stretched valuations, intense competition, declining sales growth, macroeconomic headwinds and downward estimate revision, selling the NXPI stock now appears to be a prudent move.
Currently, NXP Semiconductors carries a Zacks Rank #5 (Strong Sell).
<a href="https://www.zacks.com/stock/news/2322138/nxp-semiconductors-nxpi-dips-12-2-in-a-month-should-you-hold-or-sell?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2322138">To read this article on Zacks.com click here.</a>

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NXP Semiconductors (NXPI) Forecast

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