Analysts Expect Outperformance As NXP Semiconductors (NXPI) Ramps Down Radio Power Line

NXP Semiconductors NV (NASDAQ:NXPI) is one of the 10 Most Undervalued Semiconductor Stocks to Invest in. On December 16, Vivek Arya of Bank of America Securities maintained a Buy rating on NXP Semiconductors NV (NASDAQ:NXPI) and raised the price target from $255 to $265. According to estimates from 34 analysts covering the stock on Wall Street, the stock has a median upside target of $265, exactly where BofA’s price target now stands.

Cantor Fitzgerald Research also made some comments on the semiconductor industry on December 16, expecting relative outperformance from NXPI stock. These two positive analyst responses come at a time when investors are fearing negative sentiment as a result of news coming out of Chandler, where the company’s ECHO fab used to manufacture parts for 5G equipment.

According to an NXP spokesperson who spoke to Business Journal on December 13:

“Given the market realities with no outlook for recovery, the RP business no longer fits into the company’s long-term strategic direction. Therefore, NXP has made the decision to ramp down its radio power product line.”

The Chandler facility is expected to close by 2027 after a lack of ROI on investments amid lower-than-expected global 5G deployments. The firm will completely exit the radio power market while scaling down operations at the Chandler fab.

NXP Semiconductors NV (NASDAQ:NXPI) is a designer and manufacturer of semiconductor equipment based in Eindhoven, Netherlands. Its high-performance mixed-signal products are sold globally across markets such as automotive, IoT, mobile, and communication infrastructure.

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Disclosure: None. This article is originally published at Insider Monkey.