Xperi's lack of profitability and free cash flow make it a risky investment, despite its net cash position. Its future financial health hinges on earnings, and its growth rate is worrisome as unprofitable companies are typically expected to grow faster.

The market sees waning growth prospects for Xperi, reflecting a low P/S ratio. There's investor uncertainty over the firm's ability to shift this trend and a fortune change is required for P/S ratio escalation.

The semiconductor industry witnessed significant logistic disruptions in 2022. Moreover, the industry has been under pressure with declining demand. However, Barclays Capital Inc. analysts don’t expect the sector to revisit multi-year lows reached three months ago.
While the industry has been struggling with macro headwinds, its long-term prospects look impressive. Amid the metaverse’s surging popularity, semiconductor and chip producers a...