35 Chip Stocks Powering AI Boom

15. 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. Latest US export restrictions in relation to chip firms doing business in China have increased concerns around NXP as the chipmaker derives more than 35% of sales from business with China-based firms. Jeff Palmer, the vice president of investor relations at the company, recently spoke at a Goldman Sachs conference, downplaying concerns around the new export controls and noting that there was a difference between NXP working with Chinese entities and international firms with bases in China. The confidence is backed by management decisions. Last month, NXP authorized a $2 billion share repurchase program and a dividend program for shareholders.

NXP Semiconductors N.V. (NASDAQ:NXPI) is viewed with caution on Wall Street. Morgan Stanley recently lowered the price target on the stock to $271 from $275 and kept an Equal Weight rating, noting that NXP guided for the September-end quarter in line with estimates, but below consensus. In an investor note, the advisory claimed that while clearly past the bottom in automotive, the recovery was muted as some customers were still depleting inventory.