
NXP Semiconductors (NXPI) Stock Forecast & Price Target
NXP Semiconductors (NXPI) Analyst Ratings
Bulls say
NXP Semiconductors has demonstrated a strong year-over-year growth of 4% in its China business for CY24, driven by increased content in automotive applications, which positions the company favorably for long-term growth in this sector. The firm is benefiting from a stable macro environment, with key automotive drivers such as Battery Management Systems (BMS), radar, and high-end processors showing accelerated growth, while the automotive market sees increasing unit sales rates (SAAR) and heightened xEV penetration. Furthermore, margin expansion is anticipated through ongoing manufacturing and portfolio optimizations, with gross margins projected to reach 60% by 2027, contributing to a robust financial outlook.
Bears say
NXP Semiconductors is projecting a significant revenue decline in 1Q25, forecasting a 9% quarter-over-quarter drop to $2,825 million, which is $25 million below previous estimates. Additionally, the company's guidance for gross margins indicates a downward trend, with the 1Q25 gross margin expected to be 56.3%, slightly below initial projections and reflecting a 130 basis points sequential decrease driven by price concessions and lower revenue fall-through. Revenue from both the Industrial & IoT segment and Communication Infrastructure & Other segments fell short of expectations, with respective quarter-over-quarter declines of 8.3% and 9.3%, highlighting continued weaknesses in macroeconomic conditions and customer inventory management.
This aggregate rating is based on analysts' research of NXP Semiconductors and is not a guaranteed prediction by Public.com or investment advice.
NXP Semiconductors (NXPI) Analyst Forecast & Price Prediction
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