NXP Semiconductors N.V. NXPI has been making all efforts to expand its share in the automotive market.
NXP recently collaborated with TSMC TSM with an aim of using the latter’s 5-nanometer (5nm) technology for its next generation automotive platform.
The company’s automotive design solutions will be combined with TSMC’s 5nm technology to develop robust 5nm processors.
Per the deal, the companies will create a System-on-Chip (SoC) platform in 5nm based on 16nm designs to develop the next generation automotive processors.
These new processors based on TSMC’s 5nm process will be used in varied applications like connected cockpits, high-performance domain controllers, autonomous driving, advanced networking, hybrid propulsion control and integrated chassis management.
Notably, TSMC’s 5nm technology is the world’s most advanced process in volume production. NXP’s adoption of N5P will increase the speed of the processors by about 20% and lead to 40% power reduction compared to the preceding 7nm generation.
Incremental adoption of NXP’s 5nm-based auto processors is expected to boost the top line in the days ahead.
NXP Semiconductors N.V. Price and Consensus
NXP Semiconductors N.V. price-consensus-chart | NXP Semiconductors N.V. Quote
NXP is a leading global automotive supplier in the world. It is one of the market leaders in automotive connectivity, radar, powertrain, body/comfort, connected infotainment and secure networks/gateways.
The company is continuously making efforts to develop an improved 5nm design strategy with an aim of increasing software performance required in future cars.
The latest deal is a testament to the same. By leveraging computing power and power efficiency of the 5nm technology, NXP will be able to meet the requirements for advanced vehicle architectures like integration, power management and compute power.
The growing adoption of NXP’s offerings is expected to strengthen the company’s presence in the automotive market.Moreover, the ongoing digital transformation across the auto vertical holds promise.
We believe that the extended collaborations and strategic product rollouts in the auto market will bolster the company’s financial performance.
Zacks Rank & Stocks to Consider
Currently, NXP carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Wayfair Inc. W and eBay EBAY, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Wayfair and eBay is currently projected at 23% and 12.4%, respectively.
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