Better Buy: NXP Semiconductors vs. Texas Instruments
Coming out of a dreadful year for vehicle sales (research points to a global double-digit percentage plunge for vehicles sold in 2020), the new year could mark a return to year-over-year growth for the auto industry. Plus, "connected car" tech is in higher demand than ever before, and electronic components -- now comprising some 40% of a car's cost -- are only expected to continue rising.
For auto suppliers like NXP Semiconductors (NASDAQ: NXPI) and Texas Instruments (NASDAQ: TXN), this potential dual tailwind would be great news. I think both are a solid bet on the auto industry long-term, but one looks like the better buy right now.
NXP is a specialist in connectivity semiconductors for a number of industries, including for 5G mobile networks, but the auto industry is by far its largest end market. Even in a bad year for its manufacturing partners, revenue derived from automotive was well over 40% of NXP's total revenue.
Source Fool.com
