We recently compiled a list of the 10 Undervalued Chip Stocks Near 52-Week Lows. In this article, we are going to take a look at where NXP Semiconductors N.V. (NASDAQ:NXPI) stands against the other undervalued chip stocks.
Energy and EV stocks continue to be in focus as Donald Trump signs a bunch of executive orders that will have far-reaching impacts on many industries. He even revoked an executive order related to AI, though it addresses a matter that may not directly impact a company’s sales in the near term. AI stocks are going under the radar for a few weeks but with earnings season about to get into full gear, we may not have the same opportunities in a couple of weeks that we have now.
Many of the chip stocks continue to stay undervalued. The main reason is the lack of demand in the niche industries that these companies serve. But this demand will eventually shift at some point in 2025, which is what makes them so attractive to consider at this point.
We came up with 10 stocks that we believe are undervalued, near their 52-week lows, and present good investment opportunities. To come up with the 10 undervalued chip stocks that are near 52-week lows, we only considered stocks with a market cap of between $10 billion and $200 billion that hit their 52-week lows recently.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
A close-up of a semiconductor component, highlighting its complex design.
NXP Semiconductors N.V. (NASDAQ:NXPI)
NXP Semiconductors is another semi-stock that is poised for a rebound in 2025. The stock was doing quite well in the first half of the last year until it got hit by the cyclical nature of the industry. The company continues to boast a strong balance sheet and profits, both of which will inspire investor confidence as we progress into the year.
The company’s Q4 guidance fell short of expectations, so a bad Q4 is already priced in. Moreover, the management itself claimed it foresaw an improving market in the second half of the year, which never materialized. As a result, the stock has really taken a beating. It currently trades at about 7% above its 52-week lows, an ideal buying point assuming the stock has all the bad things priced in.
Overall NXPI ranks 3rd on our list of the undervalued chip stocks near 52-week lows. While we acknowledge the potential of NXPI as a leading AI 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.