NXP Semiconductors has issued a cautious first-quarter revenue forecast, citing sluggish demand from its key industrial and automotive customers. The Netherlands-based chipmaker, known for its role in high-speed digital processing across sectors like automotive, telecommunications, and manufacturing, expects revenue between $2.73 billion and $2.93 billion. The midpoint of this range falls below analysts’ projections of $2.89 billion, according to LSEG data.
The company has been impacted by a slowdown in electric vehicle (EV) adoption and persistently high interest rates, which have led to chip inventory accumulation among automotive clients. With automakers adjusting production and inventory to align with regional demand, NXP’s automotive chip sales—especially those used in advanced driver-assistance systems—have been affected.
Despite the downbeat forecast, NXP’s stock rose 2% in extended trading after it slightly surpassed Wall Street expectations for fourth-quarter revenue and earnings. The company reported Q4 revenue of $3.11 billion, just above the estimated $3.10 billion, and adjusted earnings of $3.18 per share, exceeding the forecast of $3.14 per share.
Revenue from the industrial and IoT segment saw the steepest decline, dropping 22% in Q4. The automotive division fell 6%, while the mobile unit experienced a 2% dip.
