TXN - NXP Semiconductors: Not As Sexy As Broadcom But Still Quite Attractive

December, 10 2021 02:30 PM Texas Instruments Incorporated

NXP Semiconductors is a leading supplier of chips for the automotive sector. It is also strong in the industrial, IoT market, and near-field communications (NFC) markets.
That being the case, NXP is not near as sexy as a company like Broadcom, whose leading position in high-performance networking is powering its shares.
However, NXP will benefit from long-term secular catalysts in the EV market, NFC mobile payment adoption, and industrial chips. Margins should continue to improve in 2022.
The stock pays a $2.25/share annual dividend (1.0% yield) while its estimated $9/share of FY2021 FCF generation means there is significant dividend upside moving forward.

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Company Name:	Texas Instruments Incorporated
Stock Symbol:	TXN
Market:	NASDAQ