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We all know the iPhone 5 will be coming out within the next six months. Apple is notoriously tight lipped about new products, their suppliers, etc. In the past, Apple has used Qualcomm (NASDAQ:QCOM) primarily as a key supplier for chips on their phones. Recently, Qualcomm has run into manufacturing issues with their 28 nanometer chipset. They told shareholders on their conference call that the chipset is currently suffering a manufacturing shortage. This means that Apple will need to find additional suppliers to meet the ever rising demand for their iPhones.

Enter NXP Semiconductors (NASDAQ:NXPI). This company is a direct competitor with Qualcomm, and already has Apple listed on their OEM report. Currently, NXP is in 5% of all smart phones in the marketplace. With Apple already part of NXP Semiconductors' OEM report, its safe to say that their market share is about to increase. NXP is currently trading at a P/E ratio of 15.25, market cap of $5.92 billion, with an inconsistent fluctuating growth pattern. If Apple is truly preparing to use them more, their growth could become more consistent, if not explosive.

The key to NXP's future is what is referred to as near field communication (known as NFC in the industry). Near field communication is considered to be the future of business, identification, and payment processing. To make it real simple, take everything in your wallet and put it into your cell phone. Your driver's license, library card, credit card, debit card, work badge, everything. By simply enabling NFC on your phone, you would be able to just take out your cell phone to check out that book from the library and pay for your bar tab. There would be no need to carry around a wallet in your back pocket any longer. NXP Semiconductors has an impressive patent portfolio revolving around NFC technology. They are not without competition in this field however. Companies like VeriFone Systems (NYSE:PAY), eBay (NASDAQ:EBAY), and Qualcomm (QCOM) already provide NFC technology, or have the capability to do so.

Between the manufacturing shortage at Qualcomm , NXP's market share of 5% in the mobile industry, Apple already being part of NXP's client list, and Apple's need to keep pushing the innovation bar, NXP Semiconductor could be poised to pop in the next 12 months. Some of their bigger customers consist of Apple, Samsung, Bosch, Delphi, and ZTE. There are strong catalysts to push this stock higher. Their patent portfolio for the future of technology alone should be enough to make you see if this stock has a place in your portfolio.

Disclosure: I am long AAPL, NXPI. I do not plan on exiting these positions within the next 90 days.

Additional disclosure:As always, stocks can be very risky assets. Never invest any money that you can not afford to lose. Make sure to check with your financial advisor before buying any stock mentioned, as each stock represents a different level of risk tolerance.

Source: An Underdog Apple Derivative With Upside Potential