JPM cuts Nordic Semiconductor to 'neutral' on near-term earnings strain

Nordic Semiconductor ASA

04/08/2025 06:59

** J.P.Morgan cuts Nordic Semiconductor NOD.OL to "neutral" from "overweight", citing near-term pressure on earnings estimates

** It says the Norwegian wireless chipmaker will face uncertain consumer outlook, unfavourable currency movement and digestion of the recent acquisition of Memfault

** It expects the stronger NOK and EUR vs USD to translate into higher operating costs in USD, despite underlying efforts to keep it flat in 2025

** It says Memfault should grow fast but will likely reduce earnings in the near term due to its losses and debt financing

** But JPM likes the company's long-term position after strengthening it through the acquisition of Memfault and neuton.AI, attractive exposure to IoT and EdgeAI trends

** Out of 14 analysts covering Nordic Semiconductors, seven rate the stock "buy" or "strong buy," four "hold" and two "sell" or "strong sell" - LSEG data

(Reporting by Anna Chaberska)

((Anna.chaberska@thomsonreuters.com;))