10 Buzzing AI Stocks According to Goldman Sachs

7. NXP Semiconductors N.V. (NASDAQ:NXPI)

Number of Hedge Fund Holders: 52     

NXP Semiconductors N.V. (NASDAQ:NXPI) makes and sells various products related to semiconductors. Jeff Palmer, a senior executive at the company, spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, dismissing concerns about the increasing competition for the company in China and the rising geopolitical tensions. Palmer acknowledged that there were Chinese startups in the automotive business, and those that owned consumer microcontroller plants, but stressed that there were not any indigenous Chinese companies in the semiconductor space of NXP. Palmer said even if there was not a boogeyman in China who was popping up, his company had to remain ahead of the competitors, like in any other market.

NXP Semiconductors N.V. (NASDAQ:NXPI) has a huge business in China, with nearly 35% of all sales coming from the Asian country. Palmer, while discussing geopolitical tensions and US export controls on chips to China, said there was a split between sales to China-based companies and international companies with factories there. Palmer also discussed the issue of inventory oversupply, which was keeping growth slower than anticipated in the automotive and industrial segments, noting that oversupply was related to the 2023 supply crunch.