NXP Semiconductors N.V. (NXPI Quick QuoteNXPI - Free Report) is enhancing its Ultra-Wideband (UWB) portfolio on the back of its latest launch.

Notably, the company rolled out Trimension NCJ29D6, a fully integrated automotive UWB family that integrates real-time localization with short-range radar, enabling secure car access, child presence detection, intrusion alert and gesture recognition.

Further, NXP Semiconductors unveiled the UWB device, NCJ29D6B, which enhances secure car access via a digital key on a UWB-enabled mobile phone, offering design flexibility, future-proofing, higher radio frequency sensitivity and larger memory size.

Additionally, the company launched NCJ29D6A, a pin-to-pin compatible automotive device, which integrates short-range UWB radar and location features in a single chip, allowing original equipment manufacturers to transform a single UWB-based system into a multi-purpose platform.

NXP Semiconductors is expected to gain solid traction across automotive applications on the back of its latest move.

Growth Prospects

The launch of the UWB devices is in sync with the company’s focus to strengthen its position in the global Ultra-Wideband market.

Per a Mordor Intelligence report, the Ultra-Wideband market is expected to reach $3.45 billion by 2028, witnessing a CAGR of 17.4% between 2023 and 2028.

Per a Zion Market Research report, the global UWB market will reach $6.33 billion by 2030, exhibiting a CAGR of 19.9% during 2023-2030.

Growth prospects in the promising UWB market will likely raise investors’ optimism in the stock.

Notably, NXPI shares have risen 29.1% year to date compared with the industry’s growth of 18.3%.

Growing Focus on the Automotive Market

Apart from the latest move, NXP Semiconductors acquired LaterationXYZ's technology to improve ultra-wideband ranging accuracy to millimeters, marking a milestone in UWB technology development for everyday applications requiring precise location and tracking.

Further, NXP Semiconductors launched S32M2, a purpose-built motor control solution for efficiency improvement in vehicle applications like pumps, fans and trunk openers.

Moreover, this integrated system-in-package solution adds power, analog functions and extensive software libraries to the widely adopted S32K microcontrollers, addressing the emerging software-defined electric vehicle market.

All the above-mentioned endeavors are likely to boost the company’s performance across the automotive end-market, which accounts for the majority of its total revenues.

In third-quarter 2023, automotive end-market revenues increased 5% year over year to $1.89 billion, accounting for 55% of total revenues.

Our model expects fourth-quarter 2023 automotive end-market revenues to be $1.9 billion, indicating growth of 5.2% from the 2022 level.

Strong momentum in the underlined segment will likely aid the company’s overall financial performance in the upcoming days.

However, mounting expenses, supply-chain constraints and sluggish industrial & IoT and mobile markets are concerning.

For fourth-quarter 2023, NXP Semiconductors expects revenues in the range of $3.3-$3.5 billion, indicating a decline of 1% year over year at the midpoint.

Zacks Rank and Stocks to Consider

Currently, the company carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Badger Meter (BMI Quick QuoteBMI - Free Report) , Arista Networks (ANET Quick QuoteANET - Free Report) and Snowflake (SNOW Quick QuoteSNOW - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Badger Meter’s shares have risen 35.2% in the year-to-date period. BMI’s long-term earnings growth rate is 20.39%.

Arista Networks’ shares have rallied 81% in the year-to-date period. ANET’s long-term earnings growth rate is 19.77%

Snowflake’s shares have risen 30.8% in the year-to-date period. SNOW’s long-term earnings growth rate is 64.74%.