$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley

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

Number of Hedge Fund Investors  in Q1 2024: 40

NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch semiconductor company that makes a variety of chips that can be used in humanoid robots. These include communications and applications processors, environmental and gyroscopic sensors, and controllers. It is one of the biggest companies of its kind in the world, which allows NXP Semiconductors N.V. (NASDAQ:NXPI) to have a diversified customer base which lets it hedge against a downturn in one industry. Yet, its presence in automotive, industrial, IOT, and communications doesn’t completely insulate NXP Semiconductors N.V. (NASDAQ:NXPI) from sector specific headwinds. This is because automotive is its biggest business division, and any slowdown tends to affect the stock price. At the same time, since NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the few chip makers in the world, its experience and economic scale can allow it to affective reorient towards humanoids should the need arise.

NXP Semiconductors N.V. (NASDAQ:NXPI)’s management shared key details for its inventory management during the Q2 2024 earnings call:

“With that, our quarter 3 guidance assumes approximately 1.8 months of distribution channel inventory. However, we will not grow channel inventory back to anywhere near our long-term target of 2.5 months within this calendar year. As a result, we will continue to stage inventory in a very controlled and targeted manner in the channel. Taken together, the second half will grow over the first half with the potential outcome for 2024 to be a modest annual revenue decline in the low single digit range. This is toward the low end of our earlier expectations because of the more persistent and deep inventory digestion at our auto Tier 1 customers and due to the continued weakness in our core industrial markets in Europe and the Americas. Before turning the call over to Bill, I would like to highlight what I believe is a truly strategic long-term investment for our hybrid manufacturing strategy.”