Is Qualcomm a Better Buy Than NXP Semiconductors?

NXPI: NXP Semiconductors logo
NXPI
NXP Semiconductors

NXP Semiconductors fell -11% during the past week. You may be tempted to buy more or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Qualcomm gives you more. Qualcomm (QCOM) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs NXP Semiconductors (NXPI) stock, suggesting you may be better off investing in QCOM

  • QCOM’s Last 12 Months revenue growth was 5.2%, vs. NXPI’s 2.4%.
  • In addition, its Last 3-Year Average revenue growth came in at 3.3%, ahead of NXPI’s -1.4%.
  • QCOM’s LTM margin is higher: 25.6% vs. NXPI’s 25.5%.

These differences become even clearer when you look at the financials side by side. The table highlights how NXPI’s fundamentals stack up against those of QCOM on growth, margins, momentum, and valuation multiples.

Trefis: NXPI Stock Insights

Valuation & Performance Overview

NXPI QCOM Preferred
Valuation
P/EBIT Ratio 22.5 17.9 QCOM
Revenue Growth
Last Quarter 12.2% -3.5% NXPI
Last 12 Months 2.4% 5.2% QCOM
Last 3 Year Average -1.4% 3.3% QCOM
Operating Margins
Last 12 Months 25.5% 25.6% QCOM
Last 3 Year Average 26.8% 26.0% NXPI
Momentum
Last 3 Year Return 63.2% 71.3% QCOM

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.

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See detailed fundamentals on Buy or Sell QCOM Stock and Buy or Sell NXPI Stock. Below we compare market return and related metrics across years.

Historical Market Performance

2021 2022 2023 2024 2025 2026 Total [1] Avg Best
Returns
NXPI Return 45% -29% 48% -8% 6% 38% 105% <===
QCOM Return 22% -39% 35% 8% 14% 21% 52%
S&P 500 Return 27% -19% 24% 23% 16% 8% 97%
Monthly Win Rates [3]
NXPI Win Rate 75% 25% 58% 25% 50% 67% 50%
QCOM Win Rate 58% 33% 50% 33% 50% 33% 43%
S&P 500 Win Rate 75% 42% 67% 75% 67% 50% 62% <===
Max Drawdowns [4]
NXPI Max Drawdown -19% -40% -24% -28% -37% -25% -29%
QCOM Max Drawdown -25% -44% -25% -33% -29% -32% -31%
S&P 500 Max Drawdown -5% -25% -10% -8% -19% -9% -13% <===

[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 6/10/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read QCOM Dip Buyer Analyses and NXPI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Still not sure about NXPI or QCOM? Consider a portfolio approach.

The Best Investors Think In Portfolios

Single stocks swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.