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Barchart
Barchart
Kritika Sarmah

Is NXP Semiconductors Stock Underperforming the S&P 500?

With a market cap of $50.3 billion, NXP Semiconductors N.V. (NXPI) offers various semiconductor products in the United States and internationally. Headquartered in Eindhoven, the Netherlands, the company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors and more.

Companies worth $10 billion or more are generally described as "large-cap stocks." NXPI fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the semiconductor industry. With over 33,00 employees, the company markets its products to various original equipment manufacturers, contract manufacturers, and distributors worldwide.

 

However, it is not all sunshine and rainbows for NXPI as the stock is down 29.1% from its 52-week high of $296.08, achieved on Jul. 17 last year. Shares of NXPI have slumped marginally over the three months, compared to the S&P 500 Index’s ($SPX) 3.3% rise.

www.barchart.com 

Over the long term, NXPI is up 1% on a YTD basis, and the shares are down 21.1% over the past 52 weeks. By contrast, $SPX has gained 1.5% in 2025 and 12.8% over the past year.

NXPI has been trading below its 200-day moving average since February-end but above its 50-day moving average since mid-May.

www.barchart.com 

On Apr. 28, NXPI shares grew 1.4% following the release of its Q1 results. The company’s revenue came in at $2.84 billion, surpassing Wall Street forecasts of $2.83 billion. However, its adjusted EPS of $2.17 failed to meet the Wall Street expectations marginally. Additionally, NXPI expects its adjusted EPS to range from $2.46 to $2.86, and expects revenue in the range of $2.8 billion to $3 billion for its fiscal second quarter.

In the semiconductor arena, its rival, Microchip Technology Incorporated (MCHP), has outperformed the stock on a YTD basis, with its shares surging 12.8%. However, MCHP has lagged behind the stock, with its shares declining 31.2% over the past year.

Analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 27 analysts in coverage, and the mean price target of $232.37 suggests a premium of 10.6% to its current levels.

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