Did You Miss the Exciting NFC News?

Maybe you took one look at NXP Semiconductors' (Nasdaq: NXPI  ) chart yesterday and tuned out in disgust. Perhaps you ventured beyond the ugly early day 21% share price drop to find CEO Richard Clemmer warning investors about macroeconomic slowdowns and flooding problems in Thailand, and that's where you walked away.

But then you missed the good stuff.

You may have heard of this new technology that's poised to replace credit cards with a smartphone app. If you haven't, we've got a free video report that will get you up to speed on near field communication in a jiffy. NXP, Nokia (NYSE: NOK  ) , and Sony (NYSE: SNE  ) invented the NFC technology nearly a decade ago, and now banks, handset designers, and software giants are coming together to make it truly useful.

In the third quarter, NFC-chip sales provided a light in the overall market darkness. The chips are now designed into over 90 handsets, and NFC sales jumped nearly 50% over last quarter, not last year. Most of these haven't made it to market yet, but Clemmer expects "a significant ramp-up of NFC" in the fourth quarter.

NXP is not the only player in the NFC game; chip-building rivals include such giants as Intel (Nasdaq: INTC  ) , Qualcomm (Nasdaq: QCOM  ) , and Texas Instruments (NYSE: TXN  ) . But as a founder and inventor of the platform, NXP is far and away the market leader with a solid first-mover advantage.

So you're looking at a pioneer in an NFC market that's about to explode, trading for less than nine times trailing earnings because of a slow quarter. When the global economy gets back on track, NXP's sprawling array of other businesses will recover as NFC solutions push the company to the next level.

You know what -- just watch that totally free NFC report I mentioned earlier. When the end credits roll, I'll be preaching to the choir.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Qualcomm and Texas Instruments. The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of NXP Semiconductors and Intel, as well as creating a bull call spread position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.


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  • Report this Comment On November 14, 2011, at 8:23 AM, kevinEamos wrote:

    I have been reading the hype and stories about the use of NFC technology for some time now, and while I am sure there are those who are excited, and think this is the next best thing to sliced bread - there are better ways/systems. Why would anyone be excited about a technology that is already passe' before it even hits the streets? Not only is NFC non-secure, its adoption, or proposed adoption, in mobile devices, represents poor focus, leadership, and knowledge of consumers and consumer markets by those who have opted to follow this old, worn-out trail, rather than be true pioneers, and blaze their own. (c)SecurePass is a much better, more secure, and consumer/business conscious way to go. Not only does it support consumer e-transactions to facilitate POS sales, it eliminates the need for consumers to remember multiple PINs, logins, and strong passwords, in all of their e-Commerce, web-based, ATM, POS transactions. All while maintaining user Identity protection and security. Additionally, because the user authenticates to the mobile device using ultra-secure biometrics prior to retrieving or transmitting secure information, the ability of thieves to use the device are eliminated. (c)SecurePass will provide consumers with the ability to take all of their personal information off of their personal computers, and store it on a device in such a way that their information is not accessible to hackers and thieves, thus elimiating Internet-based access to personal information, identy theft, cloning, etc., via Internet connected computers For more information, goto www.soundexconsulting.com

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