NXP Semiconductor Stock Falls, but the 2023 Outlook for EVs and Auto Tech Remains Strong
It's becoming increasingly clear that the automotive industry will be the target of massive amounts of investment in the coming decade, and well-positioned investors could profit. That's why I like semiconductor stocks (rather than automakers themselves) that are building the tech needed for electric vehicles (EVs), advanced driver assist systems (ADAS), and eventually (maybe someday) fully autonomous vehicles. Chip companies are highly profitable, shareholder friendly, and could gobble up the lion's share of market returns for these focused tech movements.
Given this assumption, NXP Semiconductors (NASDAQ: NXPI) is a top stock to watch right now. The company issued some subdued guidance for 2023, but shares could be a timely purchase this year for investors eyeing the long-term potential of auto technology.
NXP logged a solid close to 2022, reporting year-over-year revenue growth of 9% to $3.31 billion. Earnings per share (EPS) were up 23% year over year to $2.76, benefiting from higher profit margins (driven by higher utilization and efficiency of NXP's manufacturing operation) as well as the company's ongoing share repurchase program.
Source Fool.com
