5 Stocks Getting Crushed by Global Supply Chain Crisis

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

Number of Hedge Fund Holders: 43

Year-to-Date Share Price Decline as of June 1: 20.18%

NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch company that manufactures semiconductor products including microcontrollers, application processors, communication processors, wireless connectivity solutions, analog and interface devices, radio frequency power amplifiers, security controllers, and  semiconductor-based environmental and inertial sensors. The stock has fallen over 20% YTD as of June 1. 

On May 3, Piper Sandler analyst Harsh Kumar lowered the price target on NXP Semiconductors N.V. (NASDAQ:NXPI) to $175 from $210 and maintained a Neutral rating on the shares. The company posted “solid” Q1 results, exceeding March and June quarter forecasts while projecting steady and consistent growth through the second half of 2022, the analyst told investors. However, NXP Semiconductors N.V. (NASDAQ:NXPI) cited supply bottlenecks in both its core markets of automotive and internet of things, added the analyst. While he is impressed with the company’s execution, he prefers other names in the automotive and industrial sectors.

According to Insider Monkey’s Q1 data, 43 hedge funds were bullish on NXP Semiconductors N.V. (NASDAQ:NXPI), with combined stakes of $843 million, compared to 44 funds in the earlier quarter, holding stakes in the company valued at $907 million. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 923,855 shares worth about $171 million. 

Here is what Sound Shore Fund has to say about NXP Semiconductors N.V. (NASDAQ:NXPI) in its Q1 2022 investor letter:

“Similarly, analog chip supplier NXP Semiconductors declined even though the company reported above consensus revenue growth. A leading chip maker for infrastructure and automotive applications, we view NXP as a “new industrial,” uniquely positioned to benefit from increased chip content per application/vehicle. This includes electric and autonomous vehicles and more broadly, connectivity and the internet of things. We added the stock to the portfolio during the volatile fourth quarter of 2018 at just 10 times earnings. Today, NXP is still valued at a very reasonable 14 times earnings.”

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