Is it Still Safe to Invest in NXP Semiconductors (NXPI)?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the fourth quarter. On an absolute basis, the Strategy had gains across seven of the eight sectors in which it was invested (out of 11 sectors total). The leading contributors to performance were in the IT and health care sectors, while the communication services sector was a detractor. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments Large Cap Growth Strategy, in its Q4 2021 investor letter, mentioned NXP Semiconductors N.V. (NASDAQ:NXPI) and discussed its stance on the firm. Founded in 2006, NXP Semiconductors N.V. (NASDAQ:NXPI) is an Eindhoven, Netherlands-based semiconductor manufacturing company with a $45.6 billion market capitalization, and is currently spearheaded by its CEOs, Kurt Sievers and Richard L. Clemmer. NXP Semiconductors N.V. (NASDAQ:NXPI) delivered a -23.60% return since the beginning of the year, while its 12-month returns are down by -16.82%. The stock closed at $174.02 per share on April 06, 2022.

Here is what ClearBridge Investments Large Cap Growth Strategy has to say about NXP Semiconductors N.V. (NASDAQ:NXPI) in its Q4 2021 investor letter:

“While the handsets business could continue to grow, our risk/reward is now more balanced with 5G penetration more saturated, the potential for a large customer to insource certain chip production in the coming years, and new growth avenues for the company less proven. The move enables us to concentrate our semiconductor exposure in positions such as NXP, which have greater visibility to the next leg of technology growth.”

Our calculations show that NXP Semiconductors N.V. (NASDAQ:NXPI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NXP Semiconductors N.V. (NASDAQ:NXPI) was in 44 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 51 funds in the previous quarter. NXP Semiconductors N.V. (NASDAQ:NXPI) delivered a -23.33% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on NXP Semiconductors N.V. (NASDAQ:NXPI) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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