NXP Semiconductors (NXPI) Boosts UWB Portfolio With New Devices
NXP Semiconductors N.V. NXPI is enhancing its Ultra-Wideband (UWB) portfolio on the back of its latest launch.
Notably, the company rolled out Trimension NCJ29D6, a fully integrated automotive UWB family that integrates real-time localization with short-range radar, enabling secure car access, child presence detection, intrusion alert and gesture recognition.
Further, NXP Semiconductors unveiled the UWB device, NCJ29D6B, which enhances secure car access via a digital key on a UWB-enabled mobile phone, offering design flexibility, future-proofing, higher radio frequency sensitivity and larger memory size.
Additionally, the company launched NCJ29D6A, a pin-to-pin compatible automotive device, which integrates short-range UWB radar and location features in a single chip, allowing original equipment manufacturers to transform a single UWB-based system into a multi-purpose platform.
NXP Semiconductors is expected to gain solid traction across automotive applications on the back of its latest move.
NXP Semiconductors N.V. Price and Consensus
NXP Semiconductors N.V. price-consensus-chart | NXP Semiconductors N.V. Quote
Growth Prospects
The launch of the UWB devices is in sync with the company’s focus to strengthen its position in the global Ultra-Wideband market.
Per a Mordor Intelligence report, the Ultra-Wideband market is expected to reach $3.45 billion by 2028, witnessing a CAGR of 17.4% between 2023 and 2028.
Per a Zion Market Research report, the global UWB market will reach $6.33 billion by 2030, exhibiting a CAGR of 19.9% during 2023-2030.
Growth prospects in the promising UWB market will likely raise investors’ optimism in the stock.
Notably, NXPI shares have risen 29.1% year to date compared with the industry’s growth of 18.3%.
Growing Focus on the Automotive Market
Apart from the latest move, NXP Semiconductors acquired LaterationXYZ's technology to improve ultra-wideband ranging accuracy to millimeters, marking a milestone in UWB technology development for everyday applications requiring precise location and tracking.
Further, NXP Semiconductors launched S32M2, a purpose-built motor control solution for efficiency improvement in vehicle applications like pumps, fans and trunk openers.
Moreover, this integrated system-in-package solution adds power, analog functions and extensive software libraries to the widely adopted S32K microcontrollers, addressing the emerging software-defined electric vehicle market.
All the above-mentioned endeavors are likely to boost the company’s performance across the automotive end-market, which accounts for the majority of its total revenues.
In third-quarter 2023, automotive end-market revenues increased 5% year over year to $1.89 billion, accounting for 55% of total revenues.
Our model expects fourth-quarter 2023 automotive end-market revenues to be $1.9 billion, indicating growth of 5.2% from the 2022 level.
Strong momentum in the underlined segment will likely aid the company’s overall financial performance in the upcoming days.
However, mounting expenses, supply-chain constraints and sluggish industrial & IoT and mobile markets are concerning.
For fourth-quarter 2023, NXP Semiconductors expects revenues in the range of $3.3-$3.5 billion, indicating a decline of 1% year over year at the midpoint.
Zacks Rank and Stocks to Consider
Currently, the company carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Snowflake SNOW. While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter’s shares have risen 35.2% in the year-to-date period. BMI’s long-term earnings growth rate is 20.39%.
Arista Networks’ shares have rallied 81% in the year-to-date period. ANET’s long-term earnings growth rate is 19.77%
Snowflake’s shares have risen 30.8% in the year-to-date period. SNOW’s long-term earnings growth rate is 64.74%.
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