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We recently compiled a list of the 10 Companies That Analysts Just Upgraded. In this article, we are going to take a look at where NXP Semiconductors N.V. (NASDAQ:NXPI) stands against the other companies that just upgraded.
The last week was full of negativity as the S&P went down nearly 3.5%. Matters were made worse by raging wildfires in Los Angeles, which have shocked people across the country. Amidst all this, there were a lot of positive developments as analysts continued to point out companies poised for a great performance in 2025.
Artificial Intelligence stocks continue to dominate coverage despite the fear of a slowdown in spending. With agentic AI the new hype, many companies are only just entering their AI journey, so investors still have a lot of undervalued plays that are worth looking at.
To come up with the list of 10 companies that analysts just upgraded, we only considered companies with a market cap of at least $1 billion.
A close-up of a semiconductor component, highlighting its complex design.
NXP Semiconductors N.V. (NASDAQ:NXPI)
NXP Semiconductors N.V. (NASDAQ:NXPI) is a semiconductor company that has been out of favor among investors for the last two quarters. The chipmaker is not only exposed to China but it is also heavily reliant on Apple, a company that has been moving its chip-making requirements in-house and may eventually stop using NXPI’s services too.
That negativity may soon be a thing of the past. Goldman Sachs has just upgraded the firm from its Neutral rating to Buy. The firm believes NXP Semiconductors N.V. (NASDAQ:NXPI) will be one of the strongest semi-stocks in 2025. The upgrade has a lot to do with the firm’s conviction in AI spending. Even though the spending may slow down, a cyclical stock like NXPI will eventually reap the benefits of changing market dynamics.
Sometime in 2025, the cyclicality of the stock is likely to bottom out. Analysts believe the automotive market is in the final stages of its downturn and investors will realize that soon enough. This means the stock could start pricing in a cyclical recovery by the second half of the year. 2025 will therefore be a defining year for investors who want to achieve gains in semi-stocks in the next 3 years.
Overall NXPI ranks 7th on our list of the companies that just upgraded by analysts. While we acknowledge the potential of NXPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NXPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.