Some investors speculate that Texas Instruments (TXN) might buy NXP Semiconductors NV (NXPI). But Steve Smigie, Analyst at Raymond James & Associates, says he doesn’t think that will actually happen.
“I don’t know that TI would necessarily be interested in that, nor do I think NXP would be. Some people suggest there is a tax inversion scenario,” Smigie says. “In order to acquire somebody of NXP-size, you’d have to have someone like TI or Intel (INTC) doing it, and I don’t see that happening. I don’t feel rationale for it.”
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Smigie says he expects NXP to continue to execute. He says the company has a lot of drivers in terms of gains with near-field communication and secure element both in terms of handsets and in terms of bankcards.
“But if we’re looking to out years, we think you’ll see pretty meaningful pickup in their average dollar content on automobiles, and we think you’ll see them continue to do well on the comm infrastructure side,” Smigie says. “I think they’ll continue to do well in their standard products business as well. So there’s lots of opportunity there for NXP to continue to do well and outperform.”
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