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NXP Semiconductors (NXPI) Boosts Portfolio Via New Integration

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NXP Semiconductors N.V. (NXPI - Free Report) has incorporated Gallium Nitride (GaN) technology in its multi-chip module platform to boost 5G energy prospects.

Notably, the integration has boosted the efficiency of multi-chip modules to 52%. Further, the combination of laterally-diffused metal-oxide semiconductor and GaN in one device that provides 400 MHz bandwidth has enhanced the performance of the underlined modules.

Further, the company has leveraged silicon germanium technology for the multi-chip modules for 5G infrastructure. This has enhanced amplifier performance by boosting monitoring process.

The new portfolio will help radio frequency developers in minimizing the size and weight of radio units, which in turn will reduce the cost of deployment of 5G across cellular towers and rooftops.

This will indirectly expand NXP Semiconductors’ reach to mobile network operators. Moreover, the recent move has strengthened its product portfolio.

5G Infrastructure Market Prospects

We believe, the latest move poises NXP Semiconductors well to expand presence in the booming 5G market. Moreover, the company’s growing prospects in 5G technology — which holds promise — is likely to instill investor optimism in the stock further.

Coming to price performance, NXP Semiconductors has returned 28.4% on a year-to-date basis, outperforming the industry’s rally of 13.4%

The 5G infrastructure market is rapidly growing in recent times owing to increasing demand for consumer mobile bandwidth, connectivity for Internet of Things (IoT) and sensor devices for various applications.

According to a report by Mordor Intelligence, this particular market is likely to hit $54 billion by 2026, witnessing a CAGR of 53% between 2021 and 2026.

Additionally, a report by Fortune Business Insights reveals that the market is expected to hit $80.1 billion by 2027, registering a CAGR of 71% from 2020 to 2027.

NXP’s Portfolio Strength

NXP Semiconductors is making strong efforts to expand its product portfolio for automotive, industrial & IoT, mobile, and communication infrastructure markets. The latest move is a step forward in that direction.

In addition, the company recently introduced beta development tools to support new applications for iPhone and Apple Watch.

Moreover, it introduced a Trimension Ultra-Wideband platform to help Samsung users locate their personal items.

Also, NXP Semiconductors expanded the EdgeVerse portfolio with i.MX 8ULP, Microsoft Azure Sphere-certified i.MX 8ULP-CS and i.MX 9 applications processors to enhance security as well as energy efficiency.

Further, the company’s EdgeLock 2GO IoT service platform for safe deployment and management of IoT devices and services remains noteworthy.

We believe that these efforts will continue to shape its growth trajectory and sustain momentum in various end markets.

Zacks Rank & Stocks to Consider

Currently, NXP Semiconductors carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Microchip Technology Incorporated (MCHP - Free Report) , Monolithic Power Systems (MPWR - Free Report) and MACOM Technology Solutions(MTSI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Microchip, Monolithic Power, and MACOM are currently projected at 15.3%, 25% and 37%, respectively.

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