NXP Semiconductors Falls 7.5% After Hours as Q4 Revenue Guidance Misses Estimates

NXP Semiconductors (NXPI) shares dropped 7.5% in after-hours trading Wednesday after the Dutch chipmaker issued fourth-quarter revenue guidance below analyst expectations, raising concerns about the pace of demand recovery. NXP forecast Q4 revenue of $3.85 billion, up 15% year over year but short of the $3.87 billion analysts expected, according to FactSet. The company guided adjusted earnings per share of $4.14 to $4.58, versus consensus of $4.34. For the third quarter ended September 27, NXP reported revenue of $3.79 billion, up 19% year over year and above the $3.76 billion Wall Street expected. Automotive revenue rose 13% and industrial revenue climbed 39%. Adjusted EPS came in at $4.20, topping estimates of $4.12, while net income attributable to shareholders rose to $884 million from $631 million a year earlier. CEO Rafael Sotomayor attributed growth to accelerating contributions in automotive and industrial markets and continued momentum in data center infrastructure. The stock closed Wednesday up 3.1% at $253.50, bringing its year-to-date gain to 19%. Investors remain cautious about competitive pressure from Chinese semiconductor manufacturers and broader concerns over an AI bubble weighing on chip stocks.