Ceva’s AI DSP powers NXP processors for software-defined vehicles By Investing.com
Ceva, Inc. (NASDAQ: CEVA) said NXP Semiconductors has embedded its AI digital signal processor technology into NXP’s S32Z2 and S32E2 real-time processors, a move aimed at accelerating the shift to software-defined vehicles (SDVs). The integration centers on Ceva’s SensPro AI DSP, enabling real-time decision-making, predictive analytics, energy management, and intelligent control within next-generation automotive control modules.
What NXP is integrating
NXP’s S32Z2 and S32E2 platforms are designed for safety-critical, real-time automotive workloads. By adopting Ceva’s SensPro AI DSP, NXP brings on-chip machine learning and perception capabilities closer to the sensors and actuators that run modern vehicles. The result: lower-latency inference and tighter control loops for time-sensitive functions inside domain and zone controllers.
Why it matters for software-defined vehicles
The SDV model depends on powerful, flexible compute that can be updated over the air and repurposed across vehicle lifecycles. Real-time AI is a foundational layer for that vision—turning sensor streams into actionable insights while meeting strict power and safety envelopes. It’s also a growing business: according to figures cited from ResearchAndMarkets, the SDV market could expand from $213.5 billion in 2024 to more than $1.2 trillion by 2030.
Inside Ceva’s SensPro AI DSP
SensPro is an AI DSP architecture built for sensor processing, AI inference, and control algorithms under automotive constraints. In practice, that means deterministic performance for workloads like sensor fusion and signal conditioning, efficient on-DSP neural network execution, and the ability to coordinate control tasks without exceeding power budgets or compromising safety targets. By running perception and control locally, vehicle subsystems can respond faster and more reliably than if they depended solely on centralized compute or the cloud.
Use cases on the road
- Predictive battery management: Forecasting state of health and optimizing charge/discharge for hybrids and EVs.
- Condition-based maintenance: Spotting anomalies in drivetrain, braking, or thermal systems before they cause failures.
- Driver monitoring: Real-time detection of drowsiness or distraction to trigger alerts or interventions.
- Voice interfaces: Low-latency, on-device voice control for in-cabin functions without relying on connectivity.
Collectively, these capabilities support the SDV goal of deploying new features post-sale, enhancing safety and efficiency while extending component longevity.
What the companies are saying
NXP’s automotive processor leadership emphasized that integrating Ceva’s AI DSP equips customers with the machine learning and AI features needed to speed innovation in real-time compute workloads typical of SDVs. Ceva’s leadership underscored that as vehicles become more connected and intelligent, the ability to process sensor data and apply AI in real time is rapidly becoming essential rather than optional.
Announced at CES 2026
The collaboration was detailed in a company announcement during CES 2026 in Las Vegas, highlighting the industry’s continued push to move AI closer to the edge in mission-critical automotive systems.
Investor snapshot
Ceva carries a market capitalization of roughly $625 million. InvestingPro data points to robust unit economics, including gross profit margins of 87.17%, and a balance sheet with more cash than debt. For investors seeking deeper coverage, InvestingPro offers research on this and more than 1,400 U.S. equities, translating complex datasets into actionable insights.
Recent moves from Ceva
In its Q3 2025 report, Ceva posted revenue of $28.4 million, up 4% year over year but just shy of the $28.49 million consensus. Non-GAAP EPS came in at $0.11 versus expectations of $0.14. Even so, Roth/MKM raised its price target on the stock to $35 from $30 and maintained a Buy rating, citing solid revenue performance and anticipated seasonal royalty strength in Q4 2025.
Ceva also broadened its partnership footprint: it teamed up with Sensory Inc. to bring voice activation to Ceva’s NeuPro-Nano NPU for battery-constrained consumer devices, and with United Micro Technology to launch the HyperMotion 5G RedCap Automotive IoT Platform, aimed at improving connectivity for future vehicles. Together, these initiatives underscore Ceva’s strategy to extend its AI and connectivity IP across automotive and edge markets.
Bottom line
NXP’s adoption of Ceva’s SensPro AI DSP for the S32Z2 and S32E2 lines is a meaningful step toward real-time, on-device intelligence in software-defined vehicles. It promises faster perception and control, better energy optimization, and a clearer path to rolling out new features over the vehicle’s lifetime—key ingredients as automakers race to deliver safer, smarter, and more adaptable cars.
