STMicro to buy part of NXP Semiconductors' sensor business for up to $950 million

Written by Emily J. Thompson, Senior Investment Analyst

NXPI-1.81%

Source: Reuters

Updated: Jul 24 2025

0mins

Source: Reuters

Acquisition Announcement: STMicroelectronics plans to acquire part of NXP Semiconductors' sensor unit for up to $950 million, aiming to enhance its portfolio of MEMS-based electromechanical sensors.
Financial Context: The deal comes as STMicro reported its first quarterly loss in over a decade, attributed to restructuring costs and challenges in the automotive and industrial chip markets.

NXPI

$232.475+Infinity%1D

Analyst Views on NXPI

Wall Street analysts forecast NXPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NXPI is 253.79 USD with a low forecast of 210.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

20 Analyst Rating

15 Buy

5 Hold

0 Sell

Strong Buy

Current: 236.750

Low

210.00

Averages

253.79

High

289.00

Current: 236.750

Low

210.00

Averages

253.79

High

289.00

Morgan Stanley

Overweight

maintain

$293 -> $299

2026-01-16

Reason

Morgan Stanley

Price Target

$293 -> $299

AI Analysis

2026-01-16

maintain

Overweight

Reason

Morgan Stanley raised the firm's price target on NXP Semiconductors to $299 from $293 and keeps an Overweight rating on the shares. Semiconductor distributors have increasingly reported price hikes, inventory builds, lead time extensions, and supply constraints, which supports strong December and March quarter results and "a clearer path to a recovery acceleration," the analyst tells investors.

Mizuho

Outperform

maintain

$265 -> $285

2026-01-09

Reason

Mizuho

Price Target

$265 -> $285

2026-01-09

maintain

Outperform

Reason

Mizuho raised the firm's price target on NXP Semiconductors to $285 from $265 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.

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Truist

Buy

maintain

$254 -> $265

2025-12-19

Reason

Truist

Price Target

$254 -> $265

2025-12-19

maintain

Buy

Reason

Truist raised the firm's price target on NXP Semiconductors to $265 from $254 and keeps a Buy rating on the shares. The firm adjusted price targets in the semiconductor and artificial intelligence group after establishing 2027 estimates. Truist recognizes the challenges of finding the power to run AI infrastructure and getting the funding to pay for it. However, the firm believes AI infrastructure semiconductor stocks "remain cheap" relative to their growth. It sees "more upside pressure" to estimates for the group relative to the diversified analog semis heading into 2026. AI capital expenditure upside will continue in 2026, the analyst tells investors in a research note.

BofA

Vivek Arya

Buy

maintain

$255 -> $265

2025-12-16

Reason

BofA

Vivek Arya

Price Target

$255 -> $265

2025-12-16

maintain

Buy

Reason

BofA analyst Vivek Arya raised the firm's price target on NXP Semiconductors to $265 from $255 and keeps a Buy rating on the shares. The firm is updating its price targets for U.S. Semiconductor stocks under its coverage, the analyst tells investors. BofA views 2026 as a midpoint for an 8 to 10 year journey upgrading traditional IT infrastructure for faster, AI workloads. While stocks may remain choppy amid greater scrutiny of AI returns and hyperscaler cash flows, this should be offset by faster large language model builders and AI factories, the firm adds.

About NXPI

NXP Semiconductors N.V. is a Netherlands-based holding company primarily engaged in the semiconductor industry. The Company through its subsidiaries focuses on the design, development, and manufacturing of semiconductor products used in a wide range of applications across automotive, industrial, mobile, and communication infrastructure markets. NXP Semiconductors discloses its revenue by end-markets. Automotive includes products for vehicle control, safety, infotainment, and electrification; Industrial & Internet of Things (IoT) covers applications in smart home, smart city, and industrial automation. The Company has one reportable segment representing the entity as a whole, it reflects the operating decisions and allocation of resources of the Company.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.