NXP Gives Upbeat Forecast in Sign That Demand Is Rebounding
By Christina Kyriasoglou
October 27, 2025 at 4:33 PM EDT
Updated on October 27, 2025 at 5:50 PM EDT
Takeaways by Bloomberg AI
- NXP Semiconductors NV gave a stronger-than-anticipated forecast for the current period, signaling that the company is recovering from sluggish demand and trade war uncertainties.
- The company said fourth-quarter revenue will be $3.2 billion to $3.4 billion, with analysts having predicted a number at the lower end of that range.
- NXP shares gained 1.7% in extended US trading after the results were published, with the company's outlook reflecting the strength of its company specific growth drivers and signs of a cyclical recovery.
NXP Semiconductors NV, a provider of chips for automakers and industrial customers, gave a stronger-than-anticipated forecast for the current period, signaling that the company is recovering from sluggish demand and trade war uncertainties.
Fourth-quarter revenue will be $3.2 billion to $3.4 billion, the Dutch semiconductor company said in a statement
on Monday. Analysts had predicted a number at the lower end of that range, according to data compiled by Bloomberg.
The outlook suggests that NXP is weathering a rough stretch better than expected. Trade tensions between the US and China have weighed on sales, and the industry is still recovering from an inventory glut.
“Our outlook reflects the strength of our company specific growth drivers and signs of a cyclical recovery,” incoming Chief Executive Officer Rafael Sotomayor said in the statement.
NXP shares gained 1.7% in extended US trading after the results were published. They had been up 6.6% this year through the close.
Automakers and other customers had stockpiled chips after the coronavirus pandemic, creating an oversupply that’s lasted longer than anticipated. Companies have delayed spending amid geopolitical uncertainty.
In the previous quarter, NXP said the glut of automotive chips might finally end this year and pointed to the company’s “massively” accelerating automotive business.
Sales in the third quarter were $3.17 billion, just above analysts’ estimates. Excluding some items, profit was $3.11 a share.
NXP largely relies on the automotive industry, supplying chips that can power infotainment systems and vehicle connections. The sector is currently facing severe disruption after the Dutch government took the unprecedented step of seizing control of Nexperia, a Chinese-owned chipmaker that was formerly a division of NXP.
Beijing responded by blocking Nexperia exports to Europe from its Chinese plant, raising fears at car companies and suppliers of a severe shortfall. Nexperia’s chips use older technology that powers functions such as windshield wipers. US auto plants are weeks away from a production shutdown, one lobby group warned last week.
Last week, NXP rivals Texas Instruments Inc. and STMicroelectronics NV posted results that disappointed investors and sent their shares down.
(Updates shares in fifth paragraph. A previous version of the story corrected the name of an executive.)
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