Google Inc (GOOG), eBay Inc (EBAY), NXP Semiconductors NV (NXPI): How To Profit From ‘The Death Of Cash’

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And mobile wallets are a booming business for NXP Semiconductors NV (NASDAQ:NXPI): It grew 19% in 2011, 41% in 2012 and is on track to grow 30% this year (to $1.26 billion), according to analysts at Merrill Lynch. These ID chips were just 16% of NXP Semiconductors NV (NASDAQ:NXPI)’s $4 billion revenue base in 2011, but should account for 35% of sales by 2015.

The real question for investors: Can NXP make money with its cutting-edge chips? After all, some chip makers offer boring products, and are content with gross profit margins of just 15% or 20%. “We’ll make it up on volume,” these chip makers say.

NXP Semiconductors NV (NASDAQ:NXPI) doesn’t need to offer up such excuses.

Thanks to a combined $5 billion in R&D spending over the past six years, this company’s products are so advanced that NXP Semiconductors NV (NASDAQ:NXPI) can charge top dollar for them. That strong pricing power fuels gross margins in excess of 45% and EBITDA margins of 30%.

And that’s led to market-beating returns for investors so far…

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I expect results like this to continue as NXP grows revenue from the mobile wallet market — especially with Google Inc (NASDAQ:GOOG) behind it. I’ve covered this area in my Game-Changing Stocks advisory extensively (and will continue to update readers).

I think that alternative payment technologies are one of the hottest opportunities for aggressive growth investors right now. This is a rocket ship you need to book a ticket on.

P.S. —  291%… 340%… 389%… These are all real returns my subscribers enjoyed from my past annual predictions report. And I think my latest research, “The 11 Most Shocking Investment Predictions For 2014,” has some new ideas with even greater potential. One of these predictions is about a new medical device that will allow you to diagnose any illness, anytime, anywhere… Another is about a bizarre plant from the Midwest that may well end America’s dependence on foreign oil. To learn more about these opportunities, and how to profit from them, click here.

– Andy Obermueller
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