NXP continues getting its chips into high-growth areas such as contactless mobile payments, the Internet of Things, mobile phone charging, increased cellular data consumption and even LED lighting. With shares trading at a solid discount to peers, some Wall Street analysts are very positive on the faster earnings growth potential relative to its competition.
Many on Wall Street believe NXP has revenue drivers that are not broad-based and macro-driven, but rather company-specific product cycles developed by an engaged management team, as well as margin expansion drivers that are undervalued by investors. With improving trends in various end markets, it is a top stock to own now.
NXP Semiconductors stock comes with a 2.16% dividend. The $235 Needham price target is a Wall Street high. The consensus target is $195.35, and shares closed at $189.85 on Thursday.
Qualcomm
This stock has rallied off its lows but still offers a tempting entry point. Qualcomm Inc. (NASDAQ: QCOM) engages in the development and commercialization of foundational technologies for the wireless industry worldwide.
The Qualcomm CDMA Technologies segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia and global positioning system products.
The Qualcomm Technology Licensing segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and OFDMA-based 5G standards and their derivatives.
The Qualcomm Strategic Initiatives segment invests in early-stage companies in various industries (including 5G, artificial intelligence, automotive, consumer, enterprise, cloud and Internet of Things) and investment for supporting the design and introduction of new products and services for voice and data communications, new industries and applications. It also provides development and other services and related products to U.S. government agencies and their contractors.
The dividend yield here is 2.27%. Qualcomm stock has a $165 price target at Credit Suisse. That compares with the $153.58 consensus target and Thursday’s close at $130.53 a share.
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