|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||111.90 - 114.19|
|52 Week Range||90.83 - 125.93|
|PE Ratio (TTM)||17.56|
|Earnings Date||Jul 31, 2018 - Aug 6, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||120.82|
Let’s talk about the popular NXP Semiconductors NV. (NASDAQ:NXPI). The company’s shares saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS.Read More...
In an earlier part of the series, we saw that Qualcomm (QCOM) is facing competition in its dominant market of smartphones because of trade tensions between the US and China. It is also facing challenges in its efforts to diversify in the fast-growing markets of IoT (Internet of Things) and automotive through the acquisition of NXP Semiconductors (NXPI). Amid these challenges, Qualcomm has been making efforts to enter new markets—such as PC, server, and wearables—organically.
In the previous part of the series, we saw that Qualcomm (QCOM) has been looking to acquire NXP Semiconductors (NXPI) since October 2016 in order to diversify into the fast-growing markets of automotive and IoT (Internet of Things). Qualcomm cleared all the hurdles and secured all necessary approvals for the deal except for approval from China’s Mofcom (Ministry of Commerce). Given the good relations between Qualcomm and China, this didn’t seem like a difficult task.
Qualcomm (QCOM) and NXP Semiconductors (NXPI), which have been on a downtrend since March 2018, saw an upsurge last week when the US and China (FXI) made efforts to ease the trade tensions between them. QCOM and NXP stocks have been on a downtrend since March 2018 when Broadcom’s (AVGO) hostile takeover of Qualcomm was rejected by the US president. Adding to Qualcomm’s trouble, the US president announced tariffs on Chinese imports on March 22 and imposed a sales ban on Chinese telecommunications equipment and systems manufacturer ZTE for violating sanctions on Iran on April 16.
President Trump touted a U.S. trade truce with China Monday. Dow stocks Boeing, Caterpillar and 3M, along with NXP Semiconductors, Qualcomm and Deere, should benefit from easing tensions.
Mnuchin is a friend of the chips. Chips stocks were rising Monday morning on news that United States and China have reached a tentative deal to cut trade deficits, with the U.S. holding off on implementing tariffs on Chinese goods. Treasury Secretary Steve Mnuchin told "Fox News Sunday" on May 20 that the U.S. is putting China tariffs "on hold" as the two countries reach a tentative deal to cut trade deficits.
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Chipmakers and IPOs were leaders in premarket trade Monday, as a pause in the U.S.-China trade war and a welter of early merger news helped power early gains.
The semiconductor industry in the U.S. has been in the news lately, as multiple events across the spectrum drive stocks in the sector. The highlight of last week was the improving state of talks between U.S. and China, as President Trump tweeted that he might remove the ban on the supply of U.S. tech to Chinese telecom gear maker ZTE. Following this, Chinese regulators restarted their review of Qualcomm’s (NASDAQ: QCOM) application to acquire Dutch firm NXP (NASDAQ: NXPI), which they previously regarded as damaging for their domestic tech firms.
At least this rumor involves quotes from an actual government official, but that final approval from Beijing is still hovering just out of reach.
Graphics-chip makers Advanced Micro Devices and Nvidia received fresh buy ratings on Friday, as investment bank Cowen initiated coverage of a host of semiconductor stocks.
NXP Semiconductors NV climbed after a report that regulators in China are looking more favorably upon the chipmaker’s proposed acquisition by Qualcomm Inc. The Wall Street Journal quoted an unidentified Beijing official as saying the deal’s approval is "looking more optimistic now." NXP shares rose as much as 5.9 percent, the biggest gain since Monday. Representatives for Qualcomm and NXP declined to comment on Friday.
Shares of NXP were up 5.5 percent at $112.52 and Qualcomm was up 1.6 percent at $57.86 in late morning trade. The deal has been approved by eight of the nine required global regulators, with only the Chinese Ministry of Commerce (MofCom) continually stalling the takeover amid U.S.-China trade tensions. Qualcomm and NXP declined to comment, while MofCom did not immediately respond to a request for comment.
Alan Valdes, director of floor operations at Silverbear Capital, joins Yahoo Finance's Seana Smith from the New York Stock Exchange to discuss the latest market moves.