NXP Semiconductors – What’s wrong with it?


With the A.I. fever going strong (even if, it has cooled down a bit in past week), there is one Chip designer and Fabrication giant, NXP, that seems neglected. Below is a list of good stuff about it:

  • Size – $61B market cap, 13B in sales
  • Valuation: 22 PE, 15 Forward PE
  • Technicals: trading near 200 DMA, and 12% below 50 DMA (daily moving average)
  • Market position: 5nm Fabs (fairly cutting edge)
  • Fabs in low-risk locations like Arizona, Texas, Netherlands

So, why is the market not rewarding this one a good near 100 PE, when almost every chip designer/fabricator is trading anywhere from 80-300 PE TTM?


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