NXP Semiconductors NV

NXPI: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$794.00	Vkxn	Krvhntfc

NXP Semiconductors Earnings: Shares Appear Undervalued Despite Bright Long-Term Prospects

Brian Colello

Jul 23, 2024

Wide-moat NXP Semiconductors reported solid second-quarter results but provided investors with a third-quarter outlook that fell short of our expectations and FactSet consensus estimates, as the automotive and core industrial end markets face some headwinds. Still, we don’t believe NXP is losing market share, and we are confident in the tailwinds around rising chip content per car in the years ahead. We maintain our $320 fair value estimate and view the 7% premarket selloff in shares as overdone and a long-term buying opportunity.

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