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What Is happening With NXP Semiconductors NV (NXPI)? Sentiment Analysis

Shares of Chinese chipmaker NXP Semiconductors NV (NASDAQ: NXPI) rose more than 4% to $184.22 on June 9. Investors reacted positively to unconfirmed reports of Samsung’s interest in buying NXPI.


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This week, the Asia-Pacific press reported that Korean giant Samsung may be interested in acquiring NXP Semiconductors. The company is listed as a potential acquisition target, along with Infineon and ARM Holdings.

It should be mentioned that there is no confirmation of this information and that previous attempts to acquire NXP Semiconductors NV (NXPI) have been blocked by the Chinese government.

At the same time, Samsung is right to be interested in the business of NXPI, which specializes in the production of chips for the automotive industry. The number of chips in cars is increasing every year as automakers add autonomous driving and driver assistance features.

Last year, NXP Semiconductors NV (NXPI) generated 50% of its revenue from the automotive sector and 22% from the industrial and IoT sectors. NXPI expects these markets to grow by approximately 9% to 14% over the next three years.

Another reason for Samsung’s interest is that NXP Semiconductors NV (NXPI) is a major customer of Taiwan Semiconductor Manufacturing, with which Samsung competes in semiconductor manufacturing. With strong global demand for semiconductors and busy factories, Samsung may want to strengthen its position in the emerging sector.

News of the potential deal was a catalyst for near-term growth, but NXP Semiconductors’ long-term prospects are far more important than its current pipeline and market expansion opportunities.

NXPI stock fell -2.08% in the previous week and increased 4.51 percent in the previous month. During the previous quarter, this company’s stock climbed 0.01%. The stock has been down -20.69 percent in the previous six months, with a full-year loss of -11.22%. This stock’s year-to-date (YTD) price performance is presently -21.60 percent at the time of writing.

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