We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where NXP Semiconductors N.V. (NASDAQ:NXPI) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A close-up of a semiconductor component, highlighting its complex design.
NXP Semiconductors N.V. (NASDAQ:NXPI)
NXP Semiconductors N.V. (NASDAQ:NXPI) is a semiconductor products provider. The company offers wireless connectivity solutions, application processors, communication processors, microcontrollers, and other products. It sells its products to contract manufacturers, original equipment manufacturers, and distributors. The stock is up 4.64% in the last 5 trading days against the S&P 500’s 1.13% gains.
NXP Semiconductors N.V. (NASDAQ:NXPI) recently acquired Kirana, a company that makes neural processing units (NPUs) for $307 million. The all-cash deal is expected to close in the first half of this calendar year. According to the company, this acquisition will help the company better integrate its solutions to offer scalable AI platforms serving multiple industries.
Morgan Stanley last week commented on how the cyclical stock could soon take off as tailwinds align to put the cyclicality in the investors’ favor. MS analysts expect the company to improve its margins this year as the industry outlook improves:
With conviction that the [microcontroller unit] cycle is finally bottoming, we see NXP Semiconductors N.V. (NASDAQ:NXPI) as the best positioned within our US analog/MCU coverage given the idiosyncratic tailwinds (auto outperformance, GM% expansion).
Overall NXPI ranks 8th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of NXPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NXPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
