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If You Invested $1000 in NXP Semiconductors 10 Years Ago, This Is How Much You'd Have Now

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 $11.1 billion in 2021, up 28% from 2020. The company derives revenues from four end markets — Automotive, Industrial & IoT, Mobile, as well as Communication Infrastructure & Others, which generated 49.6%, 21.8%, 12.8% and 15.8% of total revenues in 2021, respectively.

Revenues from Automotive, Industrial & IoT, Mobile, and Communication Infrastructure end markets increased 44%, 31%, 13% and 3% 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 requires research, patience, and a little bit of risk. So, if you had invested in NXP Semiconductors ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in May 2012 would be worth $7,583.51, or a 658.35% gain, as of May 11, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 194.63% and the price of gold went up 11.63% over the same time frame.

Analysts are forecasting more upside for NXPI too.

NXP Semiconductors reported first quarter results wherein both earnings and revenues grew year over year. Top-line growth was driven by a strong performance across the automotive, industrial & IoT, mobile, and communication infrastructure & others’ end markets. 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 remained key catalysts. Further, NXP’s robust sensing, processing and control applications contributed well. However, the constantly increasing demand-than-supply situation negatively impacted the quarterly performance. Further, uncertainties related to the ongoing coronavirus pandemic continue to remain major headwinds. The stock has underperformed its industry on a year-to-date basis.

The stock is up 7.35% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022. The consensus estimate has moved up as well.

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