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A global semiconductor shortage has impacted several industries, especially the automotive and consumer electronics industries. However, the shortage of semiconductors is causing chip prices to soar, to the industry’s significant benefit. Moreover, with increasing demand for electric vehicles (EVs), and growing demand for advanced technologies in hybrid working environments, the industry is expected to see great upside. According to a Technavio report, the global semiconductor market is expected to grow at a 4% CAGR between 2020 -2024. Both NXPI and NVDA should benefit as a result.
NVDA stock price has gained 52.2% over the past nine months, while NXPI returned 51.6%. Also, NVDA’s 80% gains over the past year are higher than NXPI’s 76.7% returns. Furthermore, in terms of the past three months’ performance, NVDA is the clear winner, with 33.5% gains versus NXPI’s 9.7% returns.
