What Makes NXP Semiconductors NV (NXPI) an Attractive Investment?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a robust second quarter in which markets rebounded from the sell-off, the Russell Mid Cap Index continued to rise, delivering impressive returns for the quarter. The Fund (Investor Shares) returned 5.49% (net of fees) in the quarter, compared to a 5.33% return for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as NXP Semiconductors N.V. (NASDAQ:NXPI). NXP Semiconductors N.V. (NASDAQ:NXPI) provides a wide range of semiconductor products. On January 7, 2026, NXP Semiconductors N.V. (NASDAQ:NXPI) stock closed at $239.34 per share. One-month return of NXP Semiconductors N.V. (NASDAQ:NXPI) was 3.24%, and its shares gained 14.12% of their value over the last 52 weeks. NXP Semiconductors N.V. (NASDAQ:NXPI) has a market capitalization of $60.341 billion.

Parnassus Core Equity Fund stated the following regarding NXP Semiconductors N.V. (NASDAQ:NXPI) in its third quarter 2025 investor letter:

"We added NXP Semiconductors N.V. (NASDAQ:NXPI), a leader in analog and embedded semiconductors with more than half of its revenue tied to autos and a strong position in industrial end markets. We believe NXP is well positioned to benefit from rising semiconductor content per vehicle and the growth of industrial automation, supported by its robust design pipeline and customer relationships. NXP Semiconductors is an innovative global leader in security, processing and sensing technologies for automotive, industrial, mobile and internet-connected products. Its moat is supported by switching costs created by long design cycles and deep customer integration. The company’s high level of customization has enabled it to expand its margins."

NXP Semiconductors N.V. (NASDAQ:NXPI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 53 hedge fund portfolios held NXP Semiconductors N.V. (NASDAQ:NXPI) at the end of the third quarter, the same as in the previous quarter. In Q3 2025, NXP Semiconductors N.V. (NASDAQ:NXPI) reported revenue of $3.17 billion, a decline of 2% year-over-year and up 8% sequentially. While we acknowledge the potential of NXP Semiconductors N.V. (NASDAQ:NXPI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered NXP Semiconductors N.V. (NASDAQ:NXPI) and shared the list of best rising tech stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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