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Apple ( AAPL ) chip supplier NXP Semiconductors ( NXPI ) could be looking to further focus on the automotive market, as it considers a $2 billion sale of its standard products unit, according to reports. NXP Semi shares jumped as much as 3.8% Friday morning in quick turnover to retake their 200-day moving average. But the stock pared its gains to closed with a 1.8% rise and fell back below the 200-day line. The standard products unit — which consists of transistors, diodes and other standard-chip products — accounted for 20% of NXP Semi’s 2015 sales, but the segment’s revenue fell 3% year-over-year, with an 18% drop in Q4. Chinese firms, including Beijing-based investment firm JAC Capital, are interested in a deal with NXP for the unit, sources told Bloomberg. The move could signal an effort by NXP to further focus on the automotive market, and even products it supplies to smartphone makers, including Apple. NXP became the largest chip supplier to the automotive industry with the completion of its $12 billion merger with smaller peer Freescale Semiconductor in December. At that time, the company said it had plans to lead the auto industry in terms of infotainment, vehicle networking, body, safety and secure access. NXP’s automotive segment revenue jumped 17% last year, boosted by the acquisition, to $1.34 billion. That represents 22% of NXP’s total sales for 2015. NXP, which has an IBD Composite Rating of 81 out of 99, is set to report Q1 earnings on April 25. Analysts expect the bottom line to drop 19% to $1.09 a share, while the top line jumps 51% to $2.21 billion. As NXP stock is trading 27% below its 52-week high, top-rated peer Nvidia ( NVDA ) is sitting just 2% below its recent high. The Tesla Motors ( TSLA ) supplier broke out of a cup-with-handle base several weeks ago and is now extended from buy range. Monolithic Power Systems ( MPWR ) is trading 8% below its high as it works on a base, while Silicon Motion Tech ( SIMO ) is nearing profit-taking zone after a breakout last month. Nvidia closed up 0.65%, Monolithic Power added 0.3%, and Silicon Motion climbed 2.4% Friday. Apple added 0.1%, and Tesla fell 2.8%. Scalper1 News
Scalper1 News