What happened

Shares of NXP Semiconductors (NASDAQ:NXPI) soared 20.1% in April, according to data from S&P Global Market Intelligence. The chipmaker's stock tracked the S&P 500 until April 23, when solid earnings reports from two of NXP's closest rivals drove the entire embedded semiconductor sector higher. NXP's own report at the end of the month was less impressive, but the company made up for that weakness with solid next-quarter earnings guidance.

So what

Fellow embedded-chip makers STMicroelectronics (NYSE:STM) and Texas Instruments (NASDAQ:TXN) got the party started with respectable first-quarter reports. Both companies targeted a return to healthy growth in the second half of 2020, and NXP's shareholders applauded every word of that forecast.

A digital rendering of many semiconductor chips, where one chip has a printed graphic of a simple car icon sending out wireless signals.

Image source: Getty Images.

The next week, NXP posted its own results slightly below analyst expectations but alongside a similarly bullish analysis of the mid-range future.

"Once this pandemic is under control, NXP will emerge stronger and will resume its growth within its strategic focus areas, consistent with our prior long-term expectations," said NXP CEO-elect Kurt Sievers. "We execute consistently and we are committed to our long-term strategy."

Now what

After last month's sharp rebound, NXP's stock is trading 19% lower year to date at a valuation of 14 times forward earnings estimates. The company remains a leader in the automotive computing and mobile security spaces, and those markets will still be there when the COVID-19 crisis abates. I think it makes plenty of sense to pick up NXP shares at a discount right about now, because this stock is going places in the long run.