NASDAQ:NXPI
NXP Semiconductors (NXPI)
Financials 
Technical Analysis 
Sep 5, 2026, 12:00 amThis summary was created by AI, based on 1 opinions in the last 12 months.
NXP Semiconductors (NXPI-Q) experienced a significant surge in its share price, soaring 25.5% in a single day due to a growing shortage of essential chips used in automobiles. This sudden spike is particularly noteworthy as it represents a shift in the market dynamics for NXP, which had previously faced challenges with automotive chip production. As vehicles increasingly incorporate sophisticated software, the demand for these chips has notably increased, turning a past disadvantage into a newfound opportunity. Experts are optimistic about NXP's prospects, seeing the company well-positioned to capitalize on this transition in the automotive sector toward greater reliance on technology and chips. The current market situation highlights the potential for NXP to benefit from the evolving demands of the auto industry, making it a company to watch closely.
Semiconductors have been a leadership theme in this market and feels they are the new copper. They are a great indicator of economic activity. There are very short inventory cycles in semiconductors. This company makes near-field communications chips, the chip that allows you to pass it by a reader and use it for a payment. Apple’s (AAPL-Q) new Apple Pay could possibly be using this chip. This company has a very big market opportunity. Watch how it trades today.
David BurrowsSpecializes in “near field communications”. The chip on your credit card is one that can be read by another device that is nearby. This company has 70% market share in near field communication chips. We are used to them in Canada. In the US there are 2 billion credit cards that all run off a magnetic strip. Feels that ultimately the US will convert to chip and pen technology, and this company will be the big beneficiary. They are also used in key fobs for cars, identification passports, etc. Secure mobile computing and the Internet of things is something that will continue to grow, and they have a very strong franchise in this.
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The fact that they are partner with Apple was part of his thesis, but he sees 3 strong things going for it moving into 2015. 1.) They have the iPhone 6 which gave them a bigger dollar content than they had in the 5. They are the chip that enables Apple Pay. Apple made a really important announcement in China on their mobile payment platform. That same technology can be brought into the iPad and even the iWatch eventually. 2.) Beyond that, they are one of the leading providers of networking technology inside cars. There is a whole ramp of car technology coming in terms of car to car communication. 3.) The final thing is that the US is going to start issuing chip cards for Visa and debit cards. The company has a target of getting to $8 in earnings in the next 3 years or so.