-
eInfochips, an Arrow Electronics company, and NXP Semiconductors recently announced a multi-year collaboration focusing on software distribution and customer services for NXP’s S32 microcontrollers, aiming to accelerate the development of software-defined vehicles.
-
This partnership highlights Arrow’s ongoing efforts to expand its value-added engineering and software support capabilities within the automotive and embedded systems sectors.
-
We’ll examine how Arrow’s expanded role in automotive software solutions with NXP could impact its outlook for recurring, higher-margin services growth.
These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump’s tariffs. Discover why before your portfolio feels the trade war pinch.
To be a shareholder in Arrow Electronics, you must believe that the company can successfully pivot toward higher-margin, recurring revenue streams as industrial, automotive, and connectivity trends drive demand for electronics content. While the recent eInfochips–NXP collaboration underscores Arrow’s ambitions in software and engineering services, it does not materially affect the immediate risk that automation and direct sourcing could weaken Arrow’s position in the traditional distribution business.
The most relevant recent announcement is Arrow’s appointment of an interim CEO in September 2025. This leadership change, closely following strategic partnerships, may impact Arrow’s agility in executing new service-focused initiatives as it aims for greater exposure to the software-defined automotive sector.
However, against this potential for a shift into higher-value offerings, investors should also recognize the risk if digital procurement trends accelerate and…
Read the full narrative on Arrow Electronics (it’s free!)
Arrow Electronics’ outlook suggests $35.2 billion in revenue and $734.1 million in earnings by 2028. This is based on an anticipated 7.3% annual revenue growth and a $266.9 million increase in earnings from the current $467.2 million.
Uncover how Arrow Electronics’ forecasts yield a $116.75 fair value, a 3% downside to its current price.
Two fair value estimates from the Simply Wall St Community both land at US$116.75, reflecting remarkably consistent expectations. Some see Arrow’s effort to expand recurring, engineering-related services as a turning point, but your experience could differ, explore alternative viewpoints to inform your decision.