Analyst Note| Brian Colello, CPA |
Narrow-moat NXP Semiconductors reported solid first-quarter results and provided investors with a healthy second-quarter forecast despite manufacturing disruptions in its Texas factories earlier this year. Broad based analog and mixed signal demand remains quite healthy, and industrywide shortages will likely last through all of 2021, per management. Nonetheless, NXP is clearly gaining content in automotive, which is one of our favorite long-term secular trends in the chip industry. We raise our fair value estimate to $202 from $186 and view shares as fairly valued.