Is This a Top Auto Stock to Buy for 2023?
It may not look like it from the stock chart, but NXP Semiconductors (NASDAQ: NXPI) is having a record year. The integrated device manufacturing company is a top supplier of cutting-edge technology to the auto industry. The ongoing effort by global automakers to rapidly transition to producing primarily electric vehicles is thus giving a massive lift to NXP's portfolio of silicon products.
But the economy is slowing down, and media outlets and business leaders alike are anticipating a possible (albeit mild) U.S. recession in 2023. An economic contraction would be bad news for the auto industry. Is NXP still a top auto stock for the upcoming new year?
Netherlands-based NXP has enjoyed a windfall, as have its peer integrated device manufacturers -- companies such as Texas Instruments and ON Semi, which both design and manufacture chips. NXP's competitors all specialize in semiconductors for industrial use, but NXP in particular has carved out a niche as a supplier to automakers. In the third quarter, more than 52% of its sales were to automotive end markets.
Source Fool.com
