NXP Semiconductors

Methodology

NXP's automotive and industrial semiconductor focus creates more earnings stability than consumer electronics chips, though auto production cycles and industrial demand impact results. Electric vehicle and ADAS content growth provide long-term visibility. The calculation works reasonably well when normalizing for automotive production cycles and focusing on content-per-vehicle trends.

Methodology

NXP typically trades at moderate PEG ratios reflecting steady automotive semiconductor growth offset by cyclical production volumes. The metric should account for electrification and connectivity content increases beyond unit volume growth. Compare to automotive semiconductor peers like Infineon while considering NXP's market positions in secure connectivity and processing.

Methodology

NXP offers a meaningful dividend with management committed to consistent capital returns alongside strategic investments. The dividend adds significant value to total returns for this automotive semiconductor leader. PEGY better reflects total return potential combining automotive electrification growth with reliable income generation.