NXP semiconductors short term outlook:
Are the natives restless, is it time to start buying NXP semiconductors? I say yes in the short term, when NXPI reports earnings later this summer, I believe we are getting early signals that the earnings maybe better than some analysis want to believe.
Apples reporting better than expected demand for the IPhone 6 which houses the NFC chip produced by NXPI. NXPI has inked deals to supply Samsung for the China Cellular operations and finally another agreement with Qualcomm for the use of its NFC chips in the Qualcomm Snapdragon processors.
If we take this information and project it onto NXPI earnings I see a strong potential for positive earnings. I believe we can see some upside coming in the near future for NXPI. Not to mention the every growing analyst upgrades and recommendations for the stock.
The potential merger coming in several months could make the company the fourth largest chip manufacturer. Not to mention the diversification the stock has in the IoT and auto industry, allowing it to grow behind the NFC market.
The company appears to be able to take advantage of any market gyrations up for the next few months. The added pressure from the potential positive earnings I could see the stock breaking it's 52 week high by the end of may and heading toward some of the estimates of a $130 a share by mid June.
Disclosure: The author is long NXPI.
Additional disclosure: N/A