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With a market cap of $55 billion, NXP Semiconductors N.V. (NXPI) is a leading global semiconductor company specializing in high-performance mixed-signal and embedded processing solutions. The Netherlands-based company serves industries such as automotive, industrial, mobile, and communication infrastructure.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and NXP Semiconductors fits this criterion perfectly. NXP is a key player in automotive semiconductors, particularly in advanced driver-assistance systems (ADAS) and electrification. The company also provides secure connectivity solutions for IoT and smart devices. With a strong focus on innovation, NXP continues to expand its market presence through strategic partnerships and advanced chip technologies.
However, the chipmaker has dipped 27.6% from its 52-week high of $296.08, reached on Jul. 17. Over the past three months, shares of NXPI have declined 1.9%, compared to the S&P Semiconductor SPDR's (XSD) 16.4% returns during the same period.
Its long-term performances tell a similar story. NXPI has dipped 5.1% over the past six months and 14.6% over the past year, underperforming XSD’s 1.6% gain over the past six months and 7.1% fall over the past year.
NXPI has been trading majorly below its 50-day and 200-day moving averages since November last year, indicating a bearish trend.
On Feb. 13, NXPI shares surged over 3% after Morgan Stanley (MS) upgraded the stock to ‘Overweight’ from ‘Equal Weight.’ The firm also raised its price target to $257 from $231, signaling an 18% potential upside. Morgan Stanley cited aligning cyclical and secular tailwinds as key drivers for NXPI’s growth this year.
However, in comparison with its rival, Microchip Technology Incorporated (MCHP) has lagged behind NXPI, with a dip of 21.4% over the past six months and a 33.7% decrease over the past 52 weeks.
Despite the stock’s downward trajectory, analysts are highly optimistic about its prospects. NXPI has a consensus rating of “Strong Buy” from the 27 analysts covering the stock, and the mean price target of $251.67 represents an upside potential of 17.3% from the current market prices.
