NXP Semiconductors (NXPI) Lands "Good Amount" of iPhone 5 Content, Shares Ramp

September 27, 2012 2:16 PM EDT Send to a Friend
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Price: $60.42 --0%

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While NXP Semiconductors NV (NASDAQ: NXPI) got stiffed on NFC technology for the iPhone 5, shares are sharply higher Thursday as the company's semiconductor content in the new phone is notable.

Today, analysts at JPMorgan highlighted recent iPhone 5 tear-downs which showed that NXP has a "good amount of semiconductor content" in the popular device. Analyst Harlan Sur said it appears that NXP has at least two chips that are designed into the iPhone 5 platform, versus zero for the iPhone 4s.

"We believe the two chips are a part of the NXP interface product line and are providing part of the new 8-pin "lightning" connector functionality in the iPhone 5," the analyst said. "These are two out of the three interface product ramps that NXP has been talking about for the past two quarters (i.e., management has been discussing three "meaningful" inteface chip design wins."

Sur said each win should generate ~$200-$250 million cumulative revenues over a three year period. He said 3Q and 4Q estimates for NXP have little to no downside risk.

Despite the development the analyst is not raising his rating. Sur maintained a Neutral rating and $28 price target on NXP.

For an analyst ratings summary and ratings history on NXP Semiconductors NV click here. For more ratings news on NXP Semiconductors NV click here.

Shares of NXP Semiconductors are up 6.8 percent.


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