NXP Semiconductors N.V. (NXPI Quick QuoteNXPI - Free Report) is continuously witnessing strong customer momentum on the back of its robust portfolio offerings. Its shares have gained 21.7% in the past year, outperforming the industry’s growth of 15.4%.

The company’s latest partnership with Honeywell (HON Quick QuoteHON - Free Report) holds testimony to the aforesaid fact.

Notably, NXP Semiconductors and Honeywell signed a Memorandum of Understanding (MoU) at CES 2024 to enhance commercial buildings' energy control and sensing capabilities.

With this collaboration, Honeywell plans to integrate NXP Semiconductors’ strong neural network-enabled chipset capabilities and industrial-grade applications processors into its building management systems (BMS) to enhance building efficiency.

Further, NXPI’s robust product portfolio of i.MX 8M applications processors and i.MX RT crossover microcontrollers will enhance Honeywell’s real-time analytics and decision-making in on-site BMS equipment for managing critical building systems.

Expanding Customer Base

Apart from Honeywell, NXP Semiconductors also signed a MoU with Indian automotive and farm business Mahindra & Mahindra Ltd. to jointly explore the electric and connected vehicle landscape.

With the collaboration, Mahindra leverages NXP's automotive system solutions, including zonal controllers, electrification, advanced vehicle networking and secure car access technologies, to enhance safety, eco-friendliness and customer satisfaction.

HELLA, a leading automotive electronics supplier, will also leverage NXP's robust product portfolio. It will use NXP’s System-on-Chip (SOC) family to develop its 7th-generation radar portfolio, including front, rear, corner and side variants.

Strengthening Portfolio: Key Catalyst

The company’s growing efforts to strengthen its overall portfolio are expected to drive growth in its customer base in the days ahead.

Notably, the company extended its automotive radar one-chip family with the SAF86xx, which integrates a high-performance transceiver, multi-core processor and MACsec hardware engine for secure data communication.

Further, this 1 Gbit/s integrated radar enables Tier-1 automotive suppliers to develop compact, power-efficient radar sensors.

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

NXP Semiconductors also unveiled another 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.

Moreover, an expanding clientele and strong product portfolio will likely aid the company’s overall financial performance in the upcoming period.

The Zacks Consensus Estimate for 2024 total revenues is pegged at $13.72 billion, indicating year-over-year growth of 3.5%.

The consensus mark for 2024 earnings is pegged at $14.62 per share, indicating year-over-year growth of 4.8%.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET Quick QuoteANET - Free Report) and Apple (AAPL Quick QuoteAAPL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Arista Networks have returned 116.7% in the past year. The long-term earnings growth rate for ANET is pegged at 19.77%.

Shares of Apple have gained 36.8% in the past year. The long-term earnings growth rate for AAPL is currently projected at 11.03%.