The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products.
The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smartphones and other consumer-oriented devices, as well as equipment for processing flexible substrates.
Investors receive a 0.97% dividend. The BofA Securities target price for Applied Materials stock is $117. The consensus target is lower at $107.39, and shares closed trading on Tuesday at $110.46.
Automobiles, Including Electric Vehicles
NXP Semiconductors N.V. (NASDAQ: NXPI) is still considered a top play for investors looking for a chip stock with Internet of Things and automotive exposure. It became the fourth-largest semiconductor company in the industry after it merged with Freescale in late 2015. It is also important to note that the combined company is the number one supplier in auto semiconductors with a 14% share, as well as the number one supplier in global microcontrollers and a dominant supplier in mobile payments.
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.
Shareholders receive a 1.99% dividend. BofA Securities has a $200 price target, while the consensus target is just $179.00. NXP Semiconductors stock closed at $174.81 on Tuesday.
Cloud and Connectivity
Nvidia Corp. (NASDAQ: NVDA) made a huge purchase in 2020 that can help provide a solid tailwind for the company. This sector leader rarely has grown through acquisitions, but it bought Mellanox for a whopping $6.9 billion in cash.
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