NXP Semiconductors N.V.
Thesis
NXP is a global leader in sensors and technology that supports the trend towards safer driving, including auto-braking and driver assistance systems. The stock was purchased at an attractive valuation of around an 11x P/E, which is seen as a misunderstanding of the company's growth potential in the automotive sector.
Did it work?
worked
confidence: high
The long thesis on NXP played out emphatically: the stock returned +1932.5% since the pitch, validating the view that the ~11x P/E entry price mispriced the company's automotive safety and driver-assistance growth potential. A return of this magnitude decisively confirms the undervaluation argument regardless of the exact time elapsed. The direction of the return matches the stated long position.