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NXP Semiconductors (NXPI) Boosts Customer Base With VinFast

NXP Semiconductors N.V. NXPI is forming partnerships on the back of its robust portfolio of solutions.

This is evident from the fact that the company recently collaborated with a Vietnam-based automotive company, VinFast.

VinFast will use NXPI’s processors, semiconductors, sensors and system solutions for the development of automotive projects.

With the recent alliance, NXP Semiconductors aims to support VinFast in building smarter, cleaner and connected electric vehicles.

The latest move has naturally added strength to NXPI’s customer base. This is expected to contribute to its revenues in the near term.

NXP Semiconductors N.V. Price and Consensus


NXP Semiconductors N.V. Price and Consensus
NXP Semiconductors N.V. Price and Consensus

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

Growing Clientele

Apart from the recent selection by VinFast, the U.S. Department of Commerce’s National Institute of Standards and Technology has chosen NXPI’s specialized security algorithm to counter quantum threats.

Taiwan-based original design manufacturer, Compal Electronics, selected NXP Semiconductors’ Layerscape and Layerscape Access family of processors to enhance the latter’s 5G Integrated Small Cell solution.

Foxconn group’s subsidiary, Foxconn Industrial Internet, selected NXP i.MX 8 QuadMax and radar solutions for developing a digital cockpit solution.

Moreover, NXPI is experiencing strong customer engagements for S32 family of automotive processors and microcontrollers for its use in vehicles. This is a positive for the company.

We believe that the growing customer momentum will continue to help NXPI win the confidence of the investors in the near and long terms.

Shares of NXPI have lost 28% in the past year compared with the Computer and Technology sector’s decline of 33.9%.

Portfolio Strength

The increasing number of customers highlight the efficiency and reliability of NXPI’s portfolio of advanced technology offerings.

The company recently introduced the next-generation of automotive radar one-chip IC family named SAF85xx for advanced driver assistance systems and autonomous driving systems.

NXPI also unveiled i.MX 95 family processors, which are useful for advanced applications in automotive, industrial, networking and connectivity.

NXP Semiconductors released a S32K39 series of automotive microcontrollers optimized for electric vehicle control applications.

Though NXPI’s strengthening product portfolio remains a positive, the coronavirus pandemic-induced supply-chain constraints and mounting expenses continue to be major headwinds.

Zacks Rank & Stocks to Consider

Currently, NXP Semiconductors carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Computer & Technology sector are Arista Networks ANET, Agilent technologies A and Asure Software ASUR. While Arista Networks and Asure Software sport a Zacks Rank #1 (Strong Buy) at present, Agilent carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks has lost 14.5% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.

Agilent has gained 1.7% in the past year. A’s long-term earnings growth rate is projected at 10%.

Asure Software has returned 35.8% in the past year. The long-term earnings growth rate for ASUR is projected at 23%.

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