Dutch global chip giant NXP Semiconductors (Nasdaq: NXPI) was hit with a breakup last month: a highly anticipated deal to buy U.S. chip giant Qualcomm (Nasdaq: QCOM). No green light from China meant NXPI would be buying back $5 billion worth of shares. QCOM meanwhile will fork over $2 billion for the cost of the breakup. Shares stumbled roughly 6% fresh on the heels of the news. Yet, how does NXPI’s risk/reward look today?

Over half of the analysts stand bullish in NXPI’s corner. Let’s explore our market data- and see how the top experts on the Street are betting on the chip giant right now.

Stability Will Return

Needham analyst Rajvindra Gill (Profile & Recommendations) sees recovery ahead for NXPI despite the “knee-jerk reaction” from Wall Street. Yet, Gill remains bullish: “we believe it will stabilize as analysts reset estimates and fundamental investors begin to reevaluate the shares.”

As such, the analyst maintains a Strong Buy rating here and looks for NXPI stock to rally up to $130 (45% upside potential).

“Net, we calculate the company could earn $7.20 of 4.5% growth at 30.2% OM. The $5BN buyback could add $1.14-$-1.34 of incremental EPS. Moreover, in our view, the mix of revenue is much healthier than it was two years ago: auto and industrial end markets account for 67% of sales and the consumer orientated SIS segment is down to 6% of sales,” writes Gill.

NXPI Attracts Two New Bulls

Jefferies analyst Mark Lipacis (Profile & Recommendations) believes the QCOM breakup that sparked a sell-off in NXPI shares poses an enticing risk/reward profile to investors.

Accordingly, the analyst upgrades the stock from Hold to Buy while scaling back the price target from $127.50 to $125. Lipacis’ lowered price target still suggests he sees 39% in return potential ahead.

In Lipacis’ research note, he discusses three positive themes for the NXPI story: 1) robust long-term revenue growth 2) margin expansion, or the “Analag Renaissance,” and 3) capital return.

“We’ve shown a high correlation between capital return and P/E ratio for semiconductor stocks,” highlights Lipacis.

Making a case for the “4th Tectonic Shift in Computing,” the analyst places great importance on the Internet-of-Things as a new computing era- one primed to out-pace cell phones ten times over. NXP has hooked a solid poisoning here as a key component supplier and stands to benefit from the trend in the next decade to come.

Mizuho analyst Vijay Rakesh (Profile & Recommendations) echoes Lipacis, likewise joining the NXPI bulls. Rakesh upgrades NXPI from Neutral to Buy while cutting the price target from $127.50 to $115. In a nutshell, Rakesh believes NXPI shares boast 28% upside potential.

The analyst says while NXPI “probably lost a little gloss” from the QCOM deal falling through, this chip giant “still” reigns as “king.”

“We believe NXPI is still the king in Automotive… as the #1 automotive supplier globally, #1 in Radars with 9 of top 10 OEMs, and #1 in the China Automotive market. We believe the expanding AEB radar, ADAS and EV market positions NXPI well L-T,” highlights Rakesh.

Not only is Rakesh unfazed by the recent sell-off, he thinks that is precisely what makes NXPI stock a compelling bet: “With the significant pullback from the QCOM deal breakup, we believe the risk/reward is positive.”

The Sidelined- But Still Optimistic

Barclays analyst Blayne Curtis (Profile & Recommendations) reinstated coverage on the semiconductor player with an Equal Weight rating and $100 price target. In other words, though Curtis is playing it safe on NXPI, he nonetheless spotlights a solid 11% in upside potential for the stock.

Before, the analyst covered NXPI from the bullish camp. Yet, Curtis’ seventh rating on NXPI is now from the sidelines. Without more growth potential, it simply takes “the shine off an old favorite,” explains the analyst.

Worthy of note, Curtis has a great track record on recommending the stock. The analyst earns an average of 40.4% in profits on his NXPI recommendations.

For now, Curtis fears “too much uncertainty on the top and bottom line” to get more positive in his recommendation. Curtis expects the stock to trade at a discount compared to “higher quality” peers.

The Bottom Line: NXPI’s Got Room to Rally

The ‘Moderate Buy’ stock has Wall Street analysts tied between the bulls and the sidelined. That said, do consensus expectations tell a different, more bullish story? Consider that the 12-month average price target of $108.90 reflects healthy upside potential of 21%. Ultimately, cautious optimism shines through in this semi-conductor narrative, and Wall Street leans towards the bulls.

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See NXPI Price Target and Analyst Ratings Detail.