Goldman Sachs Initiates Coverage on NXP Semiconductors N.V. (NXPI) Stock With Buy Rating

NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs initiated coverage on the company’s stock with a “Buy” rating and a price objective of $276.00. The firm identifies NXP Semiconductors N.V. (NASDAQ:NXPI) as the leading global company in automotive processors, including in China. While Goldman Sachs has acknowledged that visibility throughout the automotive and industrial end markets is limited, it suggested that the magnitude of the downturn in microcontroller units (MCUs) and other segments offers numerous opportunities for a cyclical recovery.

Goldman Sachs Initiates Coverage on NXP Semiconductors N.V. (NXPI) Stock With Buy Rating

A close-up of a semiconductor component, highlighting its complex design.

NXP Semiconductors N.V. (NASDAQ:NXPI)’s through-cycle margin expansion potential via operational improvements was cited as one of the factors aiding the favourable outlook from the firm. The company entered into a definitive agreement to acquire Kinara, Inc., which is an industry leader in high-performance, energy-efficient, and programmable discrete neural processing units (NPUs). Such devices enable a wide range of edge AI applications, which include multi-modal Gen AI models.

This acquisition can enhance and strengthen NXP Semiconductors N.V. (NASDAQ:NXPI)’s ability to offer complete and scalable AI platforms, from TinyML to Generative AI. This can be done by bringing discrete NPUs and robust AI software to NXP Semiconductors N.V. (NASDAQ:NXPI)’s portfolio of processors, connectivity, security, and advanced analog solutions.

NXP Semiconductors N.V. (NASDAQ:NXPI) is a leading company in the broader AI industry as it offers a robust edge-AI ecosystem.

While we acknowledge the potential of NXPI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NXPI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.