TXN - NXP Semiconductors - Excellent Management And A Bright Future But A Lot Of Near-Term Uncertainty
2024-06-30 10:51:46 ET
Summary
- NXP Semiconductors has outperformed peers with strong inventory management and content wins, and could be poised for second-half outperformance despite macro challenges.
- Weaker than expected EV adoption is a meaningful threat to sales growth expectations, but there are opportunities to offset this with wins in ADAS, compute, connectivity, and radar.
- NXP's strong presence in MCUs and connectivity positions it well for AI-enabled edge devices, but that will take time to develop.
- I can argue for a fair value above $290 on the strength of NXPI's margins and revenue growth, but I the risk/reward spread is narrower than I'd like with weakening end-markets.
“No place for beginners or sensitive hearts / When sentiment is left to chance” Sade, Smooth Operator ...
NXP Semiconductors - Excellent Management And A Bright Future, But A Lot Of Near-Term Uncertainty