NXP Semiconductors N.V. NXPI is leaving no stone unturned to expand presence in the booming 5G market in India.
This is evident from the company’s recent partnership with Jio Platforms, the digital arm of a massive India-based conglomerate, Reliance Industries.
Jio Platform will integrate NXP’s Layerscape processors for developing a 5G New Radio O-RAN small cell solution, which is likely to expand use cases of 5G across Industry 4.0, broadband access, and IoT applications like tele-medicine, tele-education, augmented and virtual reality as well as drone-based agricultural monitoring.
NXP Semiconductors’ Layerscape processors utilize Arm 64-bit cores, networking and security offload engines along with high-speed SerDes interfaces, which help them in delivering higher efficiency and performance.
The latest move adds strength to the customer base of NXP Semiconductors. Further, it is likely to boost its reach to telecommunication companies in India, which in turn will drive customer momentum. This will also aid in revenue generation of the company.
NXP Semiconductors N.V. Price and Consensus
NXP Semiconductors N.V. price-consensus-chart | NXP Semiconductors N.V. Quote
5G Market Prospects
We note that the latest move poises NXP Semiconductors well to capitalize on the growth prospects present in India.
Moreover, the company’s growing prospects in 5G technology holds promise for the 5G market.
The 5G market in India is growing rapidly due to sustainable pricing of spectrum, stable policy, and regulatory landscape as well as innovative use cases in various end industries.
According to the Research and Markets report, this market is expected to hit INR 19.1 trillion by 2025, witnessing a CAGR of 96.7% between 2021 and 2025.
NXP Semiconductors’ Portfolio Strength
NXP Semiconductors is making strong efforts to expand the product portfolio and thereby increase the customer base in automotive, industrial & IoT, mobile as well as communication infrastructure markets. The latest collaboration is a step forward in that direction.
The company recently incorporated the Gallium Nitride technology in its multi-chip module platform to boost 5G energy prospects.
In addition, the company launched beta development tools to support new applications for iPhone and Apple Watch.
Moreover, NXP Semiconductors introduced S32G2 vehicle network processors and S32R294 radar processor on Taiwan Semiconductor’s TSM 16 nanometer FinFET technology for automotive processing.
The company also introduced a Trimension Ultra-Wideband platform to help Samsung users locate their personal items.
Further, NXP Semiconductors expanded the EdgeVerse portfolio with i.MX 8ULP, Microsoft Azure Sphere-certified i.MX 8ULP-CS and i.MX 9 applications processors to enhance security as well as energy efficiency.
We believe that these efforts will continue to shape its growth trajectory and sustain momentum in various end-markets served.
Zacks Rank & Stocks to Consider
Currently, NXP Semiconductors carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Monolithic Power Systems MPWR and ON SemiconductorON, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Monolithic Power, and ON Semiconductor are currently projected at 25% and 45.4%, respectively.
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