NXP Semiconductors (NXPI) is a Dutch semiconductor manufacturer located in Eindhoven, Netherlands. Unlike other 5G chip stocks, NXPI specializes in semiconductors for the automotive industry.
However, the company has recently begun to expand its offerings. While its 5G technologies are being used for the automotive sector, it has also made 5G-capable multi-chip modules for mobile networks, infrastructure, and equipment.
This expansion, combined with increasing demand among NXPI’s major end markets, have benefited the chipmaker over the past several months.
In NXPI’s second quarter, the company reported operating income of $830 million. That’s greater than Wall Street’s estimated $801.3 million.
Meanwhile, the chipmaker noted that revenue was $2.6 billion, beating the expected revenue of $2.58 billion.
In the company’s upcoming third quarter, NXPI forecasts operating income in the range of $900 million to $982 million. Revenue is projected to be around $2.78 billion to $2.93 billion.
But this momentum should continue well beyond NXPI’s third quarter as well.
With the ongoing global chip shortage, the overall semiconductor supply remains low. This means that even though companies like NXPI are selling fewer chips, higher costs are helping to prop up profits and margins.
Given the sector anticipates the shortage will continue through 2022, it suggests this supply and demand dynamic will continue for quite some time – potentially boosting shares along the way.
By now, you've no doubt seen the headlines about a global chip shortage.
GM and Toyota factories are shutting down…
Mass shortages of electronics are commonplace…
Everything from our food supply to medical device production is being strained to the breaking point.
And there is still no end in sight. As Intel reports, this shortage is set to continue for, “Several years.”
You may know it's happening. You may know something seems to be very wrong…
But what you probably don't yet realize what few so far have figured out…
Is the disturbing truth behind all this.
And the fact that when chip shortages like this one happened in the past, the investors who took the right steps made 90 times their money… while millions of others who ignored these shortages LOST 90%.
Every time you hear about the chip crisis, remember: what we're really witnessing isn't some passing inconvenience or temporary trend.
What we are seeing is the most polarizing technological and financial event of our lifetimes.
One that will be a godsend for the select few investors who understand it…
And a disaster for the millions of others that are caught in its wake.
Already, behind the scenes, the realization is setting in.
- The world's most important tech corporations, including Apple, Amazon, Google, and Microsoft, wrote an urgent plea to Congress, practically begging for help with this chip crisis fast.
- The White House has stated this chip shortage is its “Top and immediate priority.”
- Rumor has it some Americans are already hoarding items that could become scarce in the weeks ahead.
Now, a former computer chip executive with over 20 years of experience is stepping forward. To explain every detail about what this shortage really means for you… and what it will soon mean for our world.
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