5 big analyst AI moves: Nvidia guidance warning; Snowflake, Palo Alto upgraded
On Tuesday, UBS analyst Francois-Xavier Bouvignies confirmed a Buy rating on NXP Semiconductors NV (NASDAQ:NXPI) with a consistent price target of $265.00, well above the current price of $181.99. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $170 to $301. Bouvignies provided insights following the company’s quarterly financial results, noting that NXP’s non-GAAP EBIT for the first quarter of 2025 was slightly above market expectations and anticipates that the consensus estimate for the full year 2025 EBIT would remain largely unchanged.
NXP Semiconductors reported first-quarter revenues of $2.835 billion, which represented a 9% decrease year-over-year and quarter-over-quarter, aligning with consensus estimates. Breaking down the revenue by segment, the company’s automotive revenue fell short of expectations by 1%, showing a 7% decline year-over-year and a 6% drop compared to the previous quarter. Conversely, mobile revenue exceeded expectations by 4%, despite a year-over-year decrease of 3% and a 15% fall from the last quarter.
The company’s Industrial & IoT revenues also did not meet consensus forecasts, being 1% lower, with an 11% year-over-year decrease and a 2% reduction from the previous quarter. However, Communication Infrastructure revenues were a bright spot, surpassing expectations by 6%, although they still fell by 21% year-over-year and 23% from the previous quarter.
Inventory metrics indicated a rise in days inventory outstanding (DIO) to 169 days, up from 151 days in the prior quarter and 144 days in the first quarter of 2024. Channel inventory stood at 9 weeks, an increase from 8 weeks in the fourth quarter of 2024 and 7 weeks in the first quarter of 2024. These inventory levels reflect changes in stock management and supply chain dynamics over the past year.
In other recent news, NXP Semiconductors reported first-quarter revenue of $2.84 billion, an 8.9% decrease from the previous quarter, but its Non-GAAP earnings per share (EPS) slightly exceeded expectations at $2.66. The company also provided guidance for the June quarter with a revenue midpoint forecast of $2.90 billion, indicating a 2.0% sequential increase. Stifel analysts maintained a Hold rating on NXP with a $170 price target, while Truist Securities reiterated a Buy rating with a $258 target, noting the company’s earnings slightly surpassed their forecasts. Cantor Fitzgerald, however, adjusted its price target from $250 to $225, citing potential challenges in the current quarter and a cautious outlook due to tariff-related uncertainties. Evercore ISI maintained an Outperform rating with a $237 target, despite noting that NXP’s key business areas underperformed against management’s guidance. The company announced CEO Kurt Sievers will retire by the end of 2025, with Rafael Sotomayor set to succeed him. Sotomayor, currently Executive Vice President, will assume the role of President and later CEO, highlighting a well-structured leadership transition. This leadership change comes amid a challenging period, with NXP navigating below-expected performance in automotive and Industrial/IoT markets.
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