10 Undervalued Semiconductor Stocks to Buy According to Analysts

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

Upside Potential: 20%

Fwd. PE: 16.6

NXP Semiconductors N.V. (NASDAQ:NXPI) specializes in designing and manufacturing microcontrollers, processors, sensors, analog chips, and connectivity modules for various applications, including automotive, industrial, mobile, and IoT solutions. The company has always focused on elevating its existing businesses, and 2025 has already witnessed two significant developments. Firstly, on January 5, 2025, it announced the acquisition of Austria-based TTTech Auto in an all-cash deal valued at $625 million. While this acquisition might be relatively smaller in scale, TTTech brings unique safety-critical systems and middleware for software-defined vehicles (SDVs) that will complement NXP’s CoreRide platform. The management at NXP Semiconductors N.V. (NASDAQ:NXPI) is quite optimistic about this acquisition:

“The inclusion of TTTech Auto’s software into the NXP CoreRide solution further strengthens NXP’s automotive value proposition and accelerates the automotive industry’s transformation to software-defined vehicles. NXP CoreRide enables automakers to deploy their best-in-class, differentiated vehicle platforms more efficiently, faster, and safely. Our acquisition of TTTech Auto is the next big step in NXP’s journey to become the leading provider of intelligent edge systems in automotive and Industrial IoT.”

Secondly, NXP Semiconductors (NASDAQ:NXPI) also secured a €1 billion loan from European Investment Bank (EIB) to advance its research, development, and innovation efforts across its broad portfolio of semiconductor solutions. Its positive investment thesis also received a boost from Goldman Sachs as the firm upgraded its rating to Buy from Neutral with a price objective of $257.