Did You Miss the Exciting NFC News?

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Maybe you took one look at NXP Semiconductors' (NAS: NXPI) chart yesterday and tuned out in disgust. Perhaps you ventured beyond the ugly early day 21% share price drop to find CEO Richard Clemmer warning investors about macroeconomic slowdowns and flooding problems in Thailand, and that's where you walked away.

But then you missed the good stuff.

You may have heard of this new technology that's poised to replace credit cards with a smartphone app. If you haven't, we've got a free video report that will get you up to speed on near field communication in a jiffy. NXP, Nokia (NYS: NOK) , and Sony (NYS: SNE) invented the NFC technology nearly a decade ago, and now banks, handset designers, and software giants are coming together to make it truly useful.

In the third quarter, NFC-chip sales provided a light in the overall market darkness. The chips are now designed into over 90 handsets, and NFC sales jumped nearly 50% over last quarter, not last year. Most of these haven't made it to market yet, but Clemmer expects "a significant ramp-up of NFC" in the fourth quarter.

NXP is not the only player in the NFC game; chip-building rivals include such giants as Intel (NAS: INTC) , Qualcomm (NAS: QCOM) , and Texas Instruments (NYS: TXN) . But as a founder and inventor of the platform, NXP is far and away the market leader with a solid first-mover advantage.

So you're looking at a pioneer in an NFC market that's about to explode, trading for less than nine times trailing earnings because of a slow quarter. When the global economy gets back on track, NXP's sprawling array of other businesses will recover as NFC solutions push the company to the next level.

You know what -- just watch that totally free NFC report I mentioned earlier. When the end credits roll, I'll be preaching to the choir.

At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Qualcomm and Texas Instruments. The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of NXP Semiconductors and Intel, as well as creating a bull call spread position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

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