Todd Vierra and Rob Telson like it!
Despite macroeconomic headwinds and supply chain constraints,
NXP Semiconductors reported healthy Q2 2022 revenues at $3.31 billion, an increase of 27.6% YoY and 5.6% QoQ. Major revenue drivers for this quarter were the
#automotive and
#industrial segments.
Key Takeaways:
NXP’s
#automotive segment captured almost 52% of the total revenue and stood at $1.7 billion, rising 35.7% YoY and 10% QoQ respectively. Supply-demand mismatch persists within the automobile industry but the content within cars is increasing due to increased digitization and growing penetration of xEVs, which is where NXP benefits a lot.
The industrial and
#iot segment grew by 25% YoY to reach $713 million. Use cases for smart and connected applications, like within homes or factories, are evolving and leveraging the potential of IoT. Its broad portfolio includes scalable
#compute platforms along with collaborations with multiple cloud players like AWS, Azure, and Baidu, which allows for differentiated software enablement and services.
During these uncertain times, the company is banking on its NCNR orders to provide its customers with supply assurances. For 2023, NCNR orders are already more than what the company can supply. Therefore, NXP is focused on de-risking its existing backlog for potential double/stale orders and improving supply capabilities.
For the third quarter, the target is to achieve 20% YoY growth at $3.425 billion. The automotive and industrial segments will take the center stage again to provide a safe landing going forward with respect to demand.
For more insights, refer to the link below
https://lnkd.in/dQ4wBvsX