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1. Company Snapshot

1.a. Company Description

Nordic Semiconductor ASA, a fabless semiconductor company, designs, develops, markets, and sells integrated circuits and related solutions for short-and long-range wireless applications in Europe, the Americas, and the Asia/Pacific.It offers ultra-low power components; and develops low power cellular IoT.The company also provides Bluetooth 5 solutions; low power cellular devices for the IoT; and Bluetooth 5.1 solutions for direction finding applications.


In addition, it offers Zigbee 3.0 IoT solutions; Thread solution for low-power devices; nRF9160 system-in-package; nRF52 and nRF51 series system-on-chips, as well as nRF591, nRF53, nRF52, and nRF51 series software development kits; ANT, a proprietary ultra-low power wireless solution for battery operated products; and application specific integrated circuits and related consulting services.Further, the company provides software for system development, communication stacks, and application layer software, as well as development tools for desktops.Its products are used in various applications, such as audio, automotive, beacon, computer peripherals, drug delivery, patient monitoring and alerts, smart home, healthcare, connected health and home, education, industrial automation, LED lighting, logistics/asset tracking, transportation, retail and payment, sports and fitness, toys and gaming, virtual reality and augmented reality products, wireless PC peripherals, mobile phone accessories, and consumer electronics, as well as wearables, including connected watches, jewelry, proximity tags, and smart clothes and apparels.


The company was founded in 1983 and is headquartered in Trondheim, Norway.

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1.b. Last Insights on NOD

Nordic Semiconductor ASA's recent performance was driven by strong revenue growth, with a 13% increase reported in Q4 2025. The company's strategic gains in IoT connectivity and introduction of edge AI solutions for billions of IoT devices have positioned it well in the market. Improved eurozone economy and consumer confidence have also contributed to the positive momentum. Additionally, as a growth company with high insider ownership, Nordic Semiconductor has demonstrated strong internal confidence in its potential. Rising R&D costs and inventory levels notwithstanding, the company's Q4 earnings call highlights its resilience.

1.c. Company Highlights

2. Nordic Semiconductor's Q4 2025 Earnings: A Strong Finish to a Robust Year

Nordic Semiconductor's Q4 2025 revenue came in at $170 million, a 13% year-on-year increase, exceeding the company's guiding range. The gross margin was 55%, with a healthy 52% excluding the reversal of an inventory write-down. Earnings per share (EPS) was $0.2018, significantly beating estimates of $0.1112. The strong financial performance was driven by a robust competitive position, enabling Nordic to benefit from the market improvement throughout 2025.

Publication Date: Feb -08

📋 Highlights
  • Revenue Growth: Q4 2025 revenue reached $170M, a 13% YoY increase, surpassing guidance ranges.
  • Gross Margin Improvement: Reported gross margin hit 54.9% ($93M), up 2.9pp YoY, with adjusted margin at 52%.
  • Market Leadership: Nordic led 32% of Bluetooth Low Energy certifications in Q4 2025, with NRF 54 series accounting for 15% of certifications.
  • Product Innovation: Launched nRF54LV10A (healthcare wearables) and nRF54LM20B (Edge AI), plus satellite network certifications (nRF9151 for Skylo).
  • 2026 Outlook: Q1 2026 revenue guidance of $175–195M (20% midpoint growth YoY), with adjusted gross margin above 50% and EBITDA margin targeting 25% long-term.

Revenue Growth and Customer Dynamics

The company's top 10 customer share stabilized at 57%, with revenue growing equally strong among key customers and in the broad market. Nordic remains the design win leader in Bluetooth Low Energy end product certifications, with 32% of certifications in both Q4 and 2025. The NRF 54 series is beginning to have a meaningful impact, accounting for about 15% of certifications in Q4. As noted by CFO Pal Elstad, "revenue growth was driven by strong competitive strength, and the contribution of cloud services revenue from the acquisition of Memfault."

Product Developments and Market Traction

Recent product news includes the nRF54LV10A, designed for next-generation healthcare wearables, and the nRF54LM20B chip, integrating the Axon neural processing unit for local data processing. The company has also seen positive development in long-range, with the qualification of its technology on satellite networks and the certification of its nRF9151 module for Skylo's satellite network. Nordic is seeing solid positive traction in Edge AI, particularly with the LM20 family and Nordic AI labs.

Valuation and Outlook

With a P/E Ratio of 193.73 and an EV/EBITDA of 52.87, Nordic Semiconductor's valuation suggests that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 18.8%. Nordic is guiding Q1 2026 revenue between $175 million to $195 million, with an adjusted gross margin above 50%. The company's long-term ambition is to move towards an EBITDA margin of 25%, requiring continued revenue growth and a decline in R&D costs to 15-20% of revenue.

Operational Highlights and Challenges

Nordic is investing heavily in growing its product line and business, resulting in a significant step-up in the second half of 2025. The company is working closely with its supply chain and foundry partners, including TSMC, to ensure support for its customers and manufacturing. However, there are concerns about supply tightness due to component shortages, particularly memory. Nordic's distributor inventory levels are somewhat lean, but the company is continuously monitoring and balancing inventory levels to support its customers' needs.

3. NewsRoom

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Monogoto and Nordic Semiconductor Collaborate to Accelerate the nuSIM Ecosystem for IoT-Optimized Integrated Connectivity

Feb -11

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Nordic Semiconductor ASA (NDCVF) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...

Feb -05

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European Growth Stocks Insiders Are Banking On

Feb -03

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Nordic Semiconductor simplifies edge AI for billions of IoT devices

Jan -06

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European Growth Stocks Insiders Are Betting On

Jan -02

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European Growth Companies With High Insider Ownership In December 2025

Dec -04

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3 European Growth Stocks With High Insider Ownership To Watch

Nov -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.12%)

6. Segments

Consumer

Expected Growth: 9.27%

Nordic Semiconductor ASA's 9.27% growth in the Consumer segment is driven by increasing demand for wireless connectivity in IoT devices, rising adoption of smart home devices, and growing popularity of wearable devices. Additionally, the company's leadership in Bluetooth Low Energy (BLE) and Wi-Fi technologies, as well as its strong relationships with key customers, contribute to its growth momentum.

Industrial

Expected Growth: 10.43%

Nordic Semiconductor ASA's 10.43% growth in the Industrial segment is driven by increasing demand for IoT devices, growing adoption of Industry 4.0 technologies, and rising need for wireless connectivity in industrial automation. Additionally, the company's focus on low-power wireless solutions and its strong presence in the Nordic region contribute to its growth.

Healthcare

Expected Growth: 22.72%

Nordic Semiconductor ASA's 22.72% growth in Healthcare is driven by increasing demand for wireless connectivity in medical devices, remote patient monitoring, and telemedicine. The rise of IoT-enabled healthcare solutions, government initiatives for digital healthcare, and growing need for efficient healthcare services also contribute to this growth.

Others

Expected Growth: 10.43%

Nordic Semiconductor ASA's 10.43% growth is driven by increasing demand for IoT devices, 5G network expansion, and growing adoption of Bluetooth and Wi-Fi technologies. Additionally, the company's focus on low-power wireless solutions and strategic partnerships contribute to its growth momentum.

Application Specific Integrated Circuits Components

Expected Growth: 10.55%

Nordic Semiconductor ASA's 10.55% growth in Application Specific Integrated Circuits (ASICs) is driven by increasing demand for IoT devices, rising adoption of 5G and Wi-Fi 6 technologies, and growing need for low-power, high-performance ASICs in industrial, automotive, and consumer electronics applications.

7. Detailed Products

nRF52 Series

A family of microcontrollers that combine a high-performance ARM Cortex-M4 processor with a range of peripherals and analog interfaces.

nRF53 Series

A series of microcontrollers that offer high-performance, low-power, and advanced security features.

nRF51 Series

A family of microcontrollers that provide a balance of performance, power consumption, and peripheral functionality.

nRF24 Series

A family of 2.4GHz transceivers that provide low-power, low-cost, and high-performance wireless connectivity.

nRF5340

A dual-mode Bluetooth 5.2 SoC that provides high-performance, low-power, and advanced security features.

nRF9160

A low-power LTE-M/NB-IoT System-in-Package (SiP) that provides cellular connectivity for IoT applications.

8. Nordic Semiconductor ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Nordic Semiconductor ASA operates in the semiconductor industry, which is characterized by a moderate threat of substitutes. While there are some substitutes available, such as alternative semiconductor materials, the industry's high barriers to entry and the complexity of semiconductor design and manufacturing limit the threat of substitutes.

Bargaining Power Of Customers

Nordic Semiconductor ASA's customers are primarily OEMs and ODMs in the wireless technology industry. The company's products are highly specialized, and customers have limited bargaining power due to the complexity of the products and the high switching costs.

Bargaining Power Of Suppliers

Nordic Semiconductor ASA relies on a few key suppliers for its semiconductor manufacturing process. While the company has some bargaining power due to its size and reputation, suppliers also have some bargaining power due to the specialized nature of the components and the high demand for them.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital expenditures, complex manufacturing processes, and high research and development costs. These barriers limit the threat of new entrants and make it difficult for new companies to enter the market.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players competing for market share. Nordic Semiconductor ASA faces intense competition from companies such as Qualcomm, Texas Instruments, and STMicroelectronics, which can lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.50%
Debt Cost 3.95%
Equity Weight 79.50%
Equity Cost 10.43%
WACC 9.10%
Leverage 25.79%

11. Quality Control: Nordic Semiconductor ASA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

144.5$

Current Price

144.5$

Potential

-0.00%

Expected Cash-Flows