The lower the AI exposure, the bigger the problem for Europe's chip firms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 25 2024
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Source: reuters
Impact on European Semiconductor Firms: Shares of European semiconductor companies less involved in AI chips have declined due to reduced demand from automotive and industrial clients, alongside a broader sector correction. Companies like STMicroelectronics and Infineon faced significant drops in stock prices as they cut sales forecasts amid falling orders.
AI Market Resilience: While firms more exposed to the AI chip market, such as ASML and ASM International, are experiencing some declines, they remain relatively insulated compared to their less AI-focused counterparts. Analysts suggest that high-end applications linked to AI continue to perform well, although concerns over trade tensions and stock valuation corrections persist.
Analyst Views on NXPI
Wall Street analysts forecast NXPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NXPI is 253.79 USD with a low forecast of 210.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 236.750
Low
210.00
Averages
253.79
High
289.00
Current: 236.750
Low
210.00
Averages
253.79
High
289.00
About NXPI
NXP Semiconductors N.V. is a Netherlands-based holding company primarily engaged in the semiconductor industry. The Company through its subsidiaries focuses on the design, development, and manufacturing of semiconductor products used in a wide range of applications across automotive, industrial, mobile, and communication infrastructure markets. NXP Semiconductors discloses its revenue by end-markets. Automotive includes products for vehicle control, safety, infotainment, and electrification; Industrial & Internet of Things (IoT) covers applications in smart home, smart city, and industrial automation. The Company has one reportable segment representing the entity as a whole, it reflects the operating decisions and allocation of resources of the Company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
