13 Most Undervalued Blue Chip Stocks To Buy According To Analysts

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

Forward P/E, as of September 22: 17.1

Analyst Upside Potential, as of September 22: 24%

Number of Hedge Fund Holders: 52

NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch semiconductor manufacturing and design company. Some of its products include processors, microcontrollers, and sensors to name a few. NXP sells to some of the biggest companies in the world including Apple, Dell, Ericsson, and Samsung.

In the second quarter of 2024, NXP Semiconductors N.V. (NASDAQ:NXPI) logged $3.13 billion in revenue. During the same quarter, the company returned $260 billion in cash dividends and initiated the repurchase of $310 million of its common shares.

NXP Semiconductors (NASDAQ:NXPI) is one of the most undervalued blue chip stocks and we say that because of its strategic position in the industry. During the second quarter, the company announced a joint venture with VisionPower Semiconductor Manufacturing Company Pte Ltd to create a semiconductor wafer manufacturing facility in Singapore.

Towards the end of August, the European Commission approved aid worth EUR 5 billion for the construction of a microchip manufacturing plant in Dresden, Germany. The project will be led by European Semiconductor Manufacturing Company (ESMC), a joint venture between Taiwan Semiconductor Manufacturing Company, Bosch, Infineon, and NXP. By 2029, the plant will be able to produce 480,000 silicon wafers per annum.

Overall, NXP Semiconductors’ (NASDAQ:NXPI) position in the industry is remarkable. Its partnerships and projects add to its value, making it a crucial stakeholder. Moreover, as the demand for tech grows, so will the demand for NXPI.

Aristotle Large Cap Growth Strategy made the following comment about NXP Semiconductors N.V. (NASDAQ:NXPI) in its Q3 2023 investor letter:

“We sold NXP Semiconductors N.V. (NASDAQ:NXPI) to reduce our exposure to the automotive sector in semiconductors following the strong returns over the past 3 years. We are seeing early data of slowing global auto sales due to macroeconomic conditions and higher interest rates. While we think this may be a shorter-term slowdown, the risk is increasing of elevated inventory levels and pricing headwinds.”