NXP Semiconductor Hits a High: Who Needs Apple?

Shares of NXP Semiconductor (Nasdaq: NXPI  ) hit a 52-week high today. Let's look at how it got here and whether clear skies are ahead.

How it got here
NXP Semiconductor is one of the market leaders in near-field communications chips, which have been heralded as hopefully one of the main facilitators of modern mobile payment technology. Google (Nasdaq: GOOG  ) has embraced it with its Google Wallet service, among others.

One of the looming questions before this week was whether or not Apple (Nasdaq: AAPL  ) would similarly include NFC support in its iPhone 5, which was unlikely. As it turned out, the iPhone 5 indeed did not adopt the technology, but the lack of any meaningful investor reaction suggests that no one really expected the iPhone maker to use NFC, so its absence was already priced in.

On Thursday, NXP also went ahead and narrowed third-quarter guidance, expecting product revenue to grow sequentially by 8% to 10%. Total sales should increase 6% to 8%, and adjusted earnings per share should be between $0.53 and $0.59. Both of those narrowed ranges are right on target with Street estimates, but it looks like that was enough to boost shares to new highs.

How it stacks up
Let's see how NXP stacks up against some of its semiconductor peers.

NXPI Chart

NXPI data by YCharts.

We'll also analyze some fundamental metrics.


Price/Sales (TTM)

Sales Growth (TTM)

Net Margin (TTM)


NXP Semiconductor 1.6 (7.7%) (7.1%) (37.5%)
STMicroelectronics (NYSE: STM  ) 0.7 (17.0%) (5.6%) 1.7%
Texas Instruments (Nasdaq: TXN  ) 2.5 (5.5%) 12.1% 14.4%

Source: Reuters. TTM = trailing 12 months.

The broader semiconductor industry has been on hard times lately, and these three players are no different. STMicroelectronics and Texas Instruments also happen to be iPhone suppliers for different components, but that hasn't helped them avoid overall revenue declines over the past year. Part of TI's decrease is related to its decision to exit the baseband processor market to focus on its core analog business.

What's next?
Even without Apple, NXP sits in some other notable smartphones, including the Samsung Galaxy S III that has been selling well. An Apple win would have been a boon, but it looks like NXP is doing all right without the iPhone.

The introduction of the iPhone 5 is an event Apple investors have been looking forward to for months. The stakes are high and the opportunity is huge, so to help investors understand this epic Apple event, we've just released an exclusive update dedicated to the iPhone 5 launch. By picking up a copy of our premium research report on Apple, you'll learn everything you need to know about the launch, and receive ongoing guidance as key news hits. Claim your copy today by clicking here now.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of NXP Semiconductors, Google, and Apple. Motley Fool newsletter services have also recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2017525, ~/Articles/ArticleHandler.aspx, 10/26/2016 5:18:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
NXPI $98.66 Down -1.98 -1.97%
NXP Semiconductors… CAPS Rating: ****
AAPL $115.59 Down -2.66 -2.25%
Apple CAPS Rating: ****
GOOGL $822.10 Down -6.45 -0.78%
Alphabet (A shares… CAPS Rating: *****
STM $7.95 Up +0.02 +0.25%
STMicroelectronics CAPS Rating: ****
TXN $71.71 Up +0.51 +0.72%
Texas Instruments CAPS Rating: ***