NXP Semiconductors NV's shares jumped in trading Thursday as one analyst predicted revenue gains based on reports that the chip-maker is a supplier to the new iPhone, the world's most popular smartphone.
THE SPARK: Citing an analysis by industry research firm IHS iSuppli, J.P.Morgan analyst Harlan Sur said in a research note that it appears NXP has at least two chips in Apple Inc.'s iPhone 5. It did not have any in the iPhone 4S, the previous version of the phone.
Representatives from NXP and Apple were not immediately available for comment.
THE BIG PICTURE: NXP makes chips for various industries apart from mobiles phones, including autos and lighting.
Its management has referred to three "meaningful" chip design wins lately, Sur said. He thinks the iPhone 5 represents two of those three.
THE ANALYSIS: Each of these designs could generate an additional $200 million to $250 million in revenue over the next three years, he said. NXP had revenue of $4.19 billion last year.
Given that the new iPhone is in its early stages, Sur expects the products will continue to drive growth beyond that time for the company.
Sur has a "Neutral" rating on the company's shares.
SHARE ACTION: NXP's shares jumped $1.52, or 6.4 percent, to $25.28 in afternoon trading, nearly offsetting a slide that started last week. Shares have traded between $13.06 and $27.96 in the past 52 weeks.