NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the AI Stocks on Market Radar. On January 16, TD Cowen raised the price target on the stock to $285.00 from $260.00 while maintaining a “Buy” rating. The firm is positive on NXPI owing to its conservative setup and attractive valuation.

The firm said NXPI’s cautious first-quarter outlook leaves room for upside, while other semiconductor companies may see muted growth. The company is one of TD Cowen’s top three picks heading into earnings alongside IFX and ADI.

Our top three names into earnings are NXPI, IFX, and ADI as we continue to favor names that are either industrial-heavy and/or have set conservative bars with lean inventory.

From a growth standpoint, NXPI has been lagging its peers, but recent demand commentary has appeared to be stronger than that of other companies in the group. This, the firm believes, leaves room for upside even if broader industry growth remains muted, given the conservative Q1 2026 bar.

The firm added that gross margin linearity could perform better than peers if channel inventory is replenished to the middle of the target range. This was indicated during the company’s September quarter earnings call. However, NXPI’s lower internal leverage compared to peers may limit upside.

We are constructive given favorable valuation and growing capital return story.

NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch semiconductor manufacturing and design company.

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