Cramer Passes on NXP Semiconductors (NXPI): 'I Do Not Want to Own'

We recently published a list of Top 10 Stocks to Watch as Investors Brace for Recession. In this article, we are going to take a look at where NXP Semiconductors N.V. (NASDAQ:NXPI) stands against other top stocks to watch as investors brace for recession.

Despite some optimism in the market after President Donald Trump’s indication of possible talks with China, Wall Street analysts are warning about recession risks due to the impending impact of tariffs and an overall decline in consumer sentiment.

Adam Parker, Trivariate Research CEO, said in a recent interview with CNBC that it’s “hard” to be bullish in this market because the impact of tariffs is yet to be reflected in companies’ earnings.

Parker thinks that in the coming days, earnings reports of many companies will begin to show that we are indeed facing an economic slowdown:

“You know there’s a difference between a growth scare and and then an actual growth slowdown I think in this case it is a growth slowdown I don’t know how much of it is yet and that’s where I think the challenge is but you can’t just say oh it’s an irrational growth scare that everyone has and it’s like an uncertain I think if you have a business with pricing power if you have a business that you know you can be okay. But there’s a lot of economically sensitive businesses we’re going to hear from next week and the week after if you think about how earning season typically unfolds where we may get guidance that isn’t quite as peachy as we’ve seen from you know the original guys in the banks and then some of the higher quality tech companies have reported.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

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NXP Semiconductors NV (NASDAQ:NXPI)

Number of Hedge Fund Investors: 44

Jim Cramer was recently asked about NXP Semiconductors N.V. (NASDAQ:NXPI). Here is what he said:

“NXP Semiconductors NV (NASDAQ:NXPI), it’s a semiconductor company. It’s closely connected with autos, which means it’s a semiconductor company that I do not want to own.”

Sound Shore Management stated the following regarding NXP Semiconductors N.V. (NASDAQ:NXPI) in its Q3 2024 investor letter:

“Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors N.V. (NASDAQ:NXPI), a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective – we have both.”

Overall, NXPI ranks 8th on our list of top stocks to watch as investors brace for recession. While we acknowledge the potential of NXPI as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NXPI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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