Better Buy: NXP Semiconductors vs. Intel

The U.S.-China trade war, the coronavirus pandemic, and a sudden spike in demand for tech hardware have caused a shortage of semiconductors. That shortage is a real problem for many manufacturers this year. But for chip companies, there could be worse problems.

A shortage of tech's most basic building blocks means higher selling prices for what is available and plenty of outlets for new sales. Given the situation, chip fabrication stocks are a buy in my book for 2021. Two of the top plays in this space are NXP Semiconductors (NASDAQ: NXPI) and Intel (NASDAQ: INTC), but one of them looks like a more timely purchase at the moment.

NXP may not be the household name Intel is, but it is nonetheless a giant in the semiconductor industry. The company is valued at a market cap of $58 billion as of this writing and has hauled in $8.6 billion in sales over the last trailing 12-month stretch via its integrated chip design department and manufacturing facilities.

Source Fool.com