Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 15 Jun 2026
NXPI· Technology
NXP Semiconductors
NXP Semiconductors shows solid margins but struggles with valuation and returns, raising questions about its long-term durability.
Buffett fit
Partial fit
Owner
59
Durability
65
Management
86
Price
16
Score updated 23 Oct 2026 · analysis from 15 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned NXP outright, I would focus on maintaining strong , which has grown at 17.91% YoY, while ensuring the company can reinvest effectively.
The full reasoning comes with a free account.
Looking ahead 10 years, the key risk for NXP is technological disruption in the semiconductor space, as new entrants could erode market share.
The full reasoning comes with a free account.
NXP has reduced its share count by 1.7% over the last five years, indicating a commitment to returning capital to shareholders.
The full reasoning comes with a free account.
The current yield of 2.99% is well below the 8-10% target, indicating that the stock is overvalued at $304.86.
The full reasoning comes with a free account.
Free account
Read the full NXP Semiconductors analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 31.8% is in the top quintile for the sector.
- 2 growth of 17.91% YoY indicates strong cash generation.
- 3Net margin of 21.0% is well above the sector average of 15.3%.
- 4Share count has decreased by 1.7% over the last five years, showing commitment.
Concerns
5- 1 of 30.6 is significantly above the target range, implying overvaluation.
- 2 of 13.2% is below the sector top-quintile cutoff of 13.4%.
- 3 of 54.9% is below the sector top-quintile cutoff of 61%.
- 4Valuation score of 16 indicates significant pricing risk.
Price history
$238+18.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
NXP Semiconductors generates revenue through a diverse range of semiconductor products, including microcontrollers and wireless connectivity solutions, with a total revenue of $12.27B. Their products serve multiple sectors like automotive and IoT, ensuring a broad customer base. The company has a strong of $2.42B, indicating healthy unit economics.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Technology
Free weekly email
Liked the read on NXPI? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of NXP Semiconductors
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in