NXP Semiconductors NVNXPI +2.31%91 Gross Margin % is 56.21% as of Mar. 2026, which is 5% above its 10-year median of 53.38. GuruFocus rates NXPI with a GF Score™ of 91/100 and a GF Value™ of $231.15 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,011 Semiconductors companies, NXP Semiconductors NV ranks better than 88.53% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NXP Semiconductors NV had a gross margin of 56.21% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NXP Semiconductors NV Gross Margin % Related Terms
NXP Semiconductors NV Gross Margin % Historical Data
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The historical data trend for NXP Semiconductors NV's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NXPI vs MPWR, ALAB, CBRS: Gross Margin % Comparison
For the Semiconductors subindustry, NXP Semiconductors NV's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NXP Semiconductors NV Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NXP Semiconductors NV's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NXP Semiconductors NV's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NXP Semiconductors NV (NXPI) has a Gross Margin % of 56.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NXP Semiconductors NV and its competitors. This is near median its historical median of 53.38. Over the past decade, NXP Semiconductors NV's Gross Margin % has ranged from 42.84 to 56.93. According to the industry distribution chart, NXP Semiconductors NV ranks #116 out of 1011 companies in the Semiconductors industry, placing it in the top 11.5%.
Is NXP Semiconductors NV's Gross Margin % too high?
NXP Semiconductors NV's current Gross Margin % of 56.21% is near median its 10-year median of 53.38. Over the past 10 years, this metric has ranged from a low of 42.84 to a high of 56.93. The Semiconductors industry median Gross Margin % is 29.61. NXP Semiconductors NV's value of 56.21% is 89.8% above this industry median. Based on the distribution chart, NXP Semiconductors NV ranks #116 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NXP Semiconductors NV has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NXP Semiconductors NV's Gross Margin % compare to MPWR and ALAB?
According to the Semiconductors industry distribution chart, NXP Semiconductors NV ranks #116 out of 1011 companies for Gross Margin %. This places NXP Semiconductors NV in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. NXP Semiconductors NV's value of 56.21% is 89.8% above this benchmark. Historically, NXP Semiconductors NV's own Gross Margin % has ranged from 42.84 to 56.93 over the past decade. While the company's 10-year median is 53.38 vs. the industry median of 29.61, NXP Semiconductors NV has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NXP Semiconductors NV's current Gross Margin % of 56.21% is 89.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NXP Semiconductors NV and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NXP Semiconductors NV's current Gross Margin % is 56.21%, which is near median its own 10-year median of 53.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NXP Semiconductors NV stock overvalued right now?
Based on GuruFocus' analysis, NXP Semiconductors NV (NXPI) is currently considered Modestly Overvalued. The stock's GF Value™ is $231.15, compared to a current price of $300.84 — trading 30.1% above its estimated fair value. The current Gross Margin % is 56.21%, which is near median its 10-year median of 53.38 and 89.8% above the Semiconductors industry median of 29.61. NXP Semiconductors NV's overall GF Score™ is 91/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NXP Semiconductors NV (NXPI), the current Gross Margin % is 56.21% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NXP Semiconductors NV (NXPI) Overvalued in 2026?
Based on GuruFocus' analysis, NXP Semiconductors NV stock appears to be overvalued.
The current stock price of $300.84 is trading 30.1% above its estimated GF Value™ of $231.15.
GuruFocus considers NXP Semiconductors NV to be Modestly Overvalued.
Key valuation signals for NXPI:
Gross Margin %: 56.21% (near median its 10-year median of 53.38)
GF Value™: $231.15 vs. price of $300.84 (30.1% above fair value)
Industry Position: 89.8% above the Semiconductors median (#116 of 1011)
No single metric tells the full story. See the NXPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
91GF Score
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