NXP Remains Fundamentally Undervalued as It Prospers From EV Chip Content; $240 Fair Value Estimate

NXP Semiconductors reported solid first-quarter results and provided investors with a healthy second-quarter forecast as hearty chip demand continues to exceed supply and the company does not foresee significant limitations in China associated with its "COVID zero" restrictions. We maintain our $240 fair value estimate and continue to view the shares as fundamentally undervalued and one of the more attractive opportunities in our analog and mixed signal chip coverage. We remain bullish on NXP's prospects for gaining chip content in luxury and electric vehicles in the years ahead.