NXP SEMICONDUCTORS

Analysis before buying or selling NXP Semiconductors shares

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Are you looking to add NXP Semiconductor stock to your stock portfolio and are looking for useful tips and information to make a good analysis before investing? In that case, we propose you to find in this article all the elements you will need. In particular, we will look at the company's activities and sources of income, its main competitors on the market and its recent partnerships. We'll also explain what you need to consider in your fundamental analysis of this stock.

Elements to consider before selling or buying NXP Semiconductors shares

Analysis N°1

It will be necessary to monitor the sectors of activity targeted by the products developed by this company, including electric vehicles, computers, telephony and new technologies in general.

Analysis N°2

The strategy implemented by the group to expand its presence in certain strategic markets and internationally will also be interesting to use.

Analysis N°3

It also needs to keep an eye on its raw material supply in order to respond effectively to the growing market demand for semiconductors.

Analysis N°4

Competition is also growing and getting stronger in this industry and you need to assess the impact of major announcements and events from these big players on the industry and on NXP.

Analysis N°5

It will also be important to monitor the strategic partnerships that the company has established with other groups in order to improve its growth.

Analysis N°6

Finally, the financial results published by the Group should be reviewed annually and quarterly, comparing them with previous results, analysts' expectations and targets.

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General presentation of NXP Semiconductors

Without a good understanding of NXP Semiconductors, you won't be able to understand how the company can grow and how its stock can attract investors. Here is a complete overview of the company and its business to help you understand its future challenges.

NXP Semiconductors NV is a Dutch company active in the currently popular semiconductor industry. Specifically, the company specializes in the design, production and sale of high-performance mixed-signal semiconductors.

Its target customers are companies in the automotive, consumer electronics, IT and telecommunications sectors.

NXP Semiconductors is an international company and it is interesting to know the geographical distribution of its revenues in the world. The company generates 3.1% of its revenue in the Netherlands, 35.5% in China, 11.3% in Singapore, 9.4% in the United States, 8.8% in Japan, 5.9% in Germany, 3.7% in South Korea, 1.4% in Malaysia and 20.9% in the rest of the world.

Analysis before buying or selling NXP Semiconductors shares

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The major competitors of NXP Semiconductors

Let's now take a look at the environment in which the NXP Semiconductors group evolves and more precisely at its main competitors with a quick presentation of the biggest players in this sector of activity:

Intel Corporation

This American company is the second largest semiconductor manufacturer in the world after Samsung in terms of revenue. It produces microprocessors, motherboards, flash memory and graphics processors among others.

Broadcom Corporation

This Nasdaq-listed company is also an American company in the electronics industry, specializing in the manufacture of semiconductors mainly for telecommunications equipment.

Samsung Electronics

This Korean company is specialized in the production of electronic products. The company used to produce only electronic components, including semiconductors, and has recently diversified its activities into consumer electronics.

TSMC

The Taiwan Semiconductor Manufacturing Company is the largest independent semiconductor foundry. It produces, among other things, graphics cards from NVidia and systems on a Snapdragon chip from Qualcomm or chips from Apple.

NVidia Corporation

This American company is also specialized in the design of graphics processors, graphics cards and graphics chips. But its particularity is that it subcontracts the production of its chips to other companies.

AMD

Advanced Micro Devices is another major American manufacturer of semiconductors, microprocessors and graphics cards.

The major partners of NXP Semiconductors

Let's now discover the strategic allies of the NXP Semiconductors group. Indeed, this company also has its partners and regularly sets up this type of contract with other companies as in the two examples below:

Amazon Web Services

First and foremost and in 2020, the group has signed a partnership agreement with Amazon Web Services with the aim of connecting cars to the cloud. In fact and as part of this agreement, the NXP Semiconductors group will develop and produce a new chip that will guarantee the transfer of data from the automotive system to the Amazon center through the Internet for more efficient operation.

Kalray

Earlier, in 2019, NXP signed a strategic partnership with the French group Kalray. This company is indeed a pioneer in processors related to new intelligent systems. Through this partnership, the two companies intend to combine NXP's advanced and secure driver assistance solutions with Kalray's MPPA processors. The two partners will develop a central computing platform based on safety. NXP will contribute its S32 processors for the most sensitive operations that meet ASIL-D and ASIL-B safety standards and target trajectory planning functions. Kalray will contribute the performance of its MPPA processors to safely manage critical functions such as artificial intelligence processing and perception of the vehicle environment.

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Frequently Asked Questions

Why is the share of the Dutch company NXP Semiconductors listed on the Nasdaq?

The Nasdaq market is not only for American companies, but also for major technology stocks from other countries. Given NXP's semiconductor activities and its leading position in supplying these products to the automotive industry, it is logical that its share price is also listed on this sector-specific market.

How was NXP Semiconductors created?

The independent history of NXP Semiconductors began in December 2005, after Frans Van Houten, then CEO of the Philips Semiconductors Group, announced the intention of the parent company Philips to spin off its semiconductor division either by creating a spin-off or by selling it to another semiconductor group. The subsidiary will eventually be sold to a group of investors and will take its current name of NXP Semiconductors.

Who are the main shareholders of NXP Semiconductors?

Currently, NXP Semiconductors is partly owned by a few major private shareholders including T Row Price Associates with 7.66%, Fidelity Management & Research with 7.56%, Davidson Kempner Capital Management with 5.85%, Artisan Partners with 4.03%, Blackstone Corporate Private Equity with 3.97%, Third Point with 3.85%, Elliott Management Corp with 3.76%, Kohlberg Kravis Roberts & Co with 2.98%, Bain Capital Private Equity with 2.77% and SSgA Funds Management with 2.58%.

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