NXP Semiconductors (NXPI) Valuation After Radio Power Exit, Chandler Closure and Fresh Analyst Upgrades

NXP Semiconductors (NXPI) is back in focus after fresh Wall Street optimism coincided with a strategic pivot, as the company winds down its radio power business and plans to close its Chandler facility.

See our latest analysis for NXP Semiconductors.

Set against a 1 month share price return of 18.25 percent and a solid 1 year total shareholder return of 9.65 percent, the latest restructuring and upbeat semiconductor backdrop suggest momentum is quietly rebuilding rather than fading.

If the Chandler move has you rethinking where the next wave of chip growth might come from, it could be worth exploring high growth tech and AI stocks as potential beneficiaries of the same AI and data center tailwinds.

With analysts still lifting price targets and the stock already up strongly this month, the key question now is simple: Is NXP still trading below its true potential or has the market already priced in the next leg of growth?

Most Popular Narrative: 12.4% Undervalued

With NXP Semiconductors last closing at $226.27 versus a narrative fair value near $258, the current setup points to potential upside if long term forecasts are realized.

The analysts have a consensus price target of $258.19 for NXP Semiconductors based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $289.0, and the most bearish reporting a price target of just $210.0.

Read the complete narrative.

Curious what kind of revenue path, margin uplift, and earnings power would need to materialize to justify that target, especially with built-in disagreement across forecasts?

Result: Fair Value of $258.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition from China and only modest end demand recovery could squeeze margins, stall auto restocking, and challenge the upbeat earnings trajectory.

Find out about the key risks to this NXP Semiconductors narrative.

Another Lens on Value

Our SWS DCF model paints a cooler picture, suggesting NXP is trading roughly 4 percent above its fair value of $216.94 at the current $226.27 share price. If cash flows are already priced in, how much of the upside case is really left on the table?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NXP Semiconductors for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 913 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own NXP Semiconductors Narrative

If you have a different view or want to dig into the numbers yourself, you can build a fresh take in just a few minutes: Do it your way.

A great starting point for your NXP Semiconductors research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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