- NXP has limited scope for driving substantially higher revenue or margins in the near-term, with Q4'21 margins already above interim three-year targets.
- Content growth opportunities within the auto sector may still be underrated, and NXP is likewise well-positioned for industrial (automation, intelligent edge IoT) and mobile (UWB) growth.
- With customers building inventory and demand likely to slow later in 2022, there is still a risk of a more significant sector-wide correction in 2023/24.
- Even with that near-term risk, NXP shares look undervalued, as high single-digit long-term revenue growth and long-term margin leverage can support a meaningfully higher share price today.
For further details see:
NXP Semiconductors Has Already Sold Off Ahead Of Potentially Rockier Demand