NXP Semiconductors NV (NASDAQ: NXPI) is having an overwhelmingly strong start to the trading session this morning, and for good reason. There are reports surfacing that the potential acquisition of the company by Qualcomm (QCOM) is under review yet again. Of course, the news led to excitement among investors, sending the stock on a run for the top. Today, we’ll talk about:
- The potential acquisition;
- what we’re seeing from QCOM as a result; and
- what we’ll be watching for ahead.
NXPI Heads For The Top On Acquisition Review
As mentioned above, NXP Semiconductors is having an incredibly strong start to the trading session this morning after news was reported that a potential acquisition is now under review by regulators. In a report, first published by Bloomberg this morning, news broke that Chinese regulators have begun their review of the potential buyout of the company by Qualcomm.
The potential acquisition was announced quite a while ago. However, the review of the buyout bid was put to a halt in reaction to growing tensions between the United States and China. Nonetheless, the news of the review comes after Trump said that he and China’s President were working together to get ZTE back in business. Just a month ago, the Trump Administration banned American companies from selling components to ZTE. Nonetheless, as the tensions subside, NXPI is enjoying gains as a result of the acquisition review.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of NXP Semiconductors, the news proved to be overwhelmingly positive. With the news that the acquisition is under review, NXPI could soon be purchased at an incredible premium. So, it’s no surprise that excited investors are sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:34), NXPI is trading at $109.44 per share after a gain of $10.42 per share (10.53%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NXPI. In particular, we’re interested in following the story surrounding the potential acquisition. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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