NXP Semiconductors N.V. NXPI is reaping the rewards of a robust product portfolio and an expanding customer base. Notably, its shares have surged 23.1% in the past year, thus outpacing the industry’s growth of 16.4%.

In a significant stride, the company has extended its automotive radar one-chip family with the introduction of SAF86xx. This all-encompassing chip integrates a high-performance transceiver, multi-core processor, and MACsec hardware engine to ensure secure data communication.

SAF86xx, an integrated radar System-on-Chip (SOC), streams low-level sensor data at 1 Gbit/s, optimizing ADAS partitioning for software-defined vehicles and facilitating a seamless transition to new architectures through Over-the-Air updates.

This breakthrough launch is set to empower Tier-1 automotive suppliers to craft compact, power-efficient radar sensors that offer extended detection range, reliable detection of small objects, and safety for vulnerable road users.

Industry experts predict that the latest innovation from NXP Semiconductors is likely to gain solid traction among automotive electronics suppliers.

Of particular note, HELLA, a prominent automotive electronics supplier, has signed up to leverage NXP’s SoC family for the development of its 7th-generation radar portfolio, encompassing front, rear, corner, and side variants.

NXP Semiconductors N.V. Price and Consensus

NXP Semiconductors N.V. price-consensus-chart | NXP Semiconductors N.V. Quote

Expanding Efforts in the Automotive Market

Apart from SAF86xx, the company has rolled out Trimension NCJ29D6, a fully integrated automotive Ultra-Wideband (UWB) family. This innovation integrates real-time localization with short-range radar, enabling secure car access, child presence detection, intrusion alert, and gesture recognition.

NXP Semiconductors has also introduced another UWB device, NCJ29D6B, which enhances secure car access via a digital key on a UWB-enabled mobile phone. This offering provides design flexibility, future-proofing, higher radio frequency sensitivity, and a larger memory size.

Notably, the company’s launch of S32M2, a purpose-built motor control solution, is engineered to enhance the efficiency of vehicle applications such as pumps, fans, and trunk openers, making it a significant development.

This integrated system-in-package solution augments power, analog functions, and extensive software libraries to the widely adopted S32K microcontrollers, thereby addressing the emerging software-defined electric vehicle market.

Looking Ahead

The above-mentioned endeavors are poised to elevate the company’s performance in the automotive end-market, which accounts for the lion’s share of its total revenues.

The company’s robust momentum in the automotive end-market is expected to bode well for its overall financial performance in the near term.

The Zacks Consensus Estimate for 2024 total revenues stands at $13.72 billion, signaling year-over-year growth of 3.5%.

The consensus mark for 2024 earnings is pinned at $14.62 per share, indicating year-over-year growth of 4.8%.

Zacks Rank & Stocks to Consider

Presently, the company holds a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Camtek CAMT, BlackLine BL, and Vertiv VRT, each currently boasting a Zacks Rank #1 (Strong Buy). To discover more of today’s Zacks #1 Rank stocks, click here.

While Camtek has delivered a return of 98% in the past year, the long-term earnings growth rate for CAMT is estimated to be 12.26%.

BlackLine has witnessed a decline of 18.1% in the past year. The long-term earnings growth rate for BL is presently forecasted at 50.56%.

Vertiv has experienced an impressive gain of 234.1% in the past year, with the long-term earnings growth rate for VRT projected at 53.86%.