Back to top

Image: Bigstock

Here's How Much a $1000 Investment in NXP Semiconductors Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in NXP Semiconductors (NXPI - Free Report) ten years ago? It may not have been easy to hold on to NXPI for all that time, but if you did, how much would your investment be worth today?

NXP Semiconductors' Business In-Depth

With that in mind, let's take a look at NXP Semiconductors' main business drivers.

NXP Semiconductors N.V. provides high performance mixed signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise. These solutions are used in a wide range of applications, namely automotive, wireless infrastructure, lighting, industrial, mobile, consumer and computing.

NXP seems to be well positioned to capitalize on the level 2-5 automotive market. Its safety products for advanced driver assistance systems (ADAS) and other key categories of autonomous vehicles — namely Connectivity, Powertrain & Vehicle Dynamics, Body & Comfort as well as Connected Infotainment — have been gaining momentum.

Additionally, the company is the leader in general purpose microcontrollers and application processors in industrial and IoT markets. In the mobile segment, NXP is the leader in mobile payments. The company offers the full scope of mobile wallet development with mWallet 2GO, which is a big positive. It addresses user demands to quickly enable payment devices by digitizing their bank cards and experience smooth transactions at the Point-of-Sale.

Total revenues were $13.2 billion in 2022, up 19.4% from 2021. The company derives revenues from four end markets — Automotive, Industrial & IoT, Mobile, as well as Communication Infrastructure & Others, which generated 52.1%, 20.5%, 12.2% and 15.2% of total revenues in 2022, respectively.

Revenues from Automotive, Industrial & IoT, Mobile, and Communication Infrastructure end markets increased 25.2%, 12.6%, 13.8% and 14.8% year over year, respectively.

Built on more than 60 years of combined experience and expertise, the company has approximately 29,000 employees in more than 30 countries.

NXP competes with many different semiconductor companies. The company faces stiff competition from other well-established players in the semiconductor space, including ON Semiconductor Corporation, Analog Devices and Microchip Technology Incorporated.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in NXP Semiconductors a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in June 2013 would be worth $6,047.73, or a 504.77% gain, as of June 12, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 161.59% and the price of gold went up 35.60% over the same time frame.

Analysts are forecasting more upside for NXPI too.

NXP Semiconductors is driven by a strong demand environment. It is benefiting from strong momentum across automotive, and communication infrastructure & other end-markets. Further, strength across auto radar systems, auto domain and zonal processors, auto electrification systems, secure connected edge solutions, UWB secure access solutions and RF power for 5G infrastructure continue to remain key catalysts. Furthermore, the company’s robust sensing, processing and control applications are driving the top-line growth. However, the coronavirus pandemic-induced supply-chain constraint continues to be concerning. Further, sluggishness in the industrial & IoT, and mobile markets is an overhang. Mounting expenses are hurting the company’s profitability. The stock has underperformed the industry it belongs to on a year-to-date basis.

Over the past four weeks, shares have rallied 12.43%, and there have been 13 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NXP Semiconductors N.V. (NXPI) - free report >>

Published in