The stock of NXP Semiconductors (NXPI) is up 25% on April 29, and pacing for its best day ever after the company reported blockbuster financial results.
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200% short exposure to NVDA with NVDSNXP Semiconductors went public in 2010 and has never seen its share price rise as much as it is currently. The huge rally comes after the semiconductor manufacturer reported first-quarter financial results that blew away Wall Street’s estimates, driven largely by artificial intelligence (AI) data centers.
The Dutch company reported earnings per share (EPS) of $3.05, which topped Wall Street forecasts of $2.95. The company’s revenue of $3.18 billion, also beat expectations that called for $3.16 billion. Sales were up 12% from a year earlier.
NXP Semiconductors’ Processors
Unlike other semiconductor companies such as Nvidia (NVDA), NXP does not make graphics processing units (GPUs). Its microchips and processors are largely used in automobiles, and in power infrastructure that’s used in data centers.
“As data center scales, the constraints are not just compute and memory,” said the company in its earnings release. “They’re also power, cooling, uptime, secure controls, and this is where NXP plays.” Analysts reacted positively to the report, with Morgan Stanley (MS) increasing its price target on the shares to $335 from $299 previously.
Is NXPI Stock a Buy?
NXP Semiconductor’s stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 16 Buy, seven Hold, and one Sell recommendations issued in the last three months. The average NXPI price target of $286.06 implies 1.42% downside from current levels. These ratings might change after the company’s financial results.
