NXP Semiconductors NV (NASDAQ: NXPI)
NXP Semiconductors is having yet another incredible day in the market today, following up on gains we saw yesterday. The gains are coming for good reason. At the moment, the company is in talks with a big player in tech regarding a possible acquisition. Today, we’ll talk about the news, what we’re seeing from the stock as a result, and what we can expect to see from NXPI ahead.
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NXPI Gains On Acquisition Hopes
As mentioned above, NXP Semiconductors is having a strong day in the market after news spurred hopes of an acquisition. According to Dow Jones, the company is in talks with Qualcomm (NASDAQ: QCOM) with the goal of an acquisition in mind. In fact, the report from Dow Jones said that the acquisition could happen as soon as the next two or three months.
Perhaps more importantly, the value of the acquisition could be absolutely massive. In fact, if the acquisition does take place, it is expected that QCOM will pay at least $30 billion to acquire NXPI. Of course, this would be a large-scale acquisition that immediately returns value for investors.
Is An Acquisition Going To Happen?
We all know that no one can tell the future. So, I couldn’t give you a definitive yes or no answer with regard to whether or not an acquisition is going to take place. However, in my career, I’ve seen tons of acquisitions and acquisition rumors. Usually, the rumors that don’t pan out are those that come with no validation. Usually they are published in shoddy journals, and, while they get investors excited, nothing tends to happen. However, in the case of NXPI, I don’t think we’re looking at a rumor.
At the end of the day, Dow Jones published the first report on this. Since then, we’ve seen reports from several trusted media outlets confirming the fact that these companies are in talks. So, that’s the first sign of good news. Now, I’m not sure what’s happening at the negotiation table, but I do know that NXP Semiconductors has quite a bit to offer to Qualcomm and that this would be a match made in heaven. All in all, in my opinion, an acquisition is more likely than not.
What We’re Seeing From The Stock Today
There’s nothing that seems to get investors quite as excited as news of a possible acquisition. This case is no different. As a result of the news, we saw massive gains in the value of NXPI yesterday. Today, the gains have slowed, but are continuing. Currently (12:39), the stock is trading at $102.78 per share after a gain of $6.66 per share (6.93%).
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What I’m Expecting To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from NXP Semiconductors. At the end of the day, the company is in the midst of acquisition talks, which could value it with a great premium. This, of course, would return value to shareholders in a big way. However, even if the acquisition falls through, NXPI is a company that has shown its ability to release successful products and that it has a drive to continue to grow. All in all, I’m expecting to see positive news out of NXPI ahead.
[Image Courtesy of Wikipedia]