NXP Semiconductors expects first-quarter 2025 revenue to be between US$2.73 billion and US$2.93 billion, with the midpoint falling below analysts’ estimate of US$2.89 billion.

The Netherlands-based chipmaker attributes the decline to weaker demand in the automotive and industrial sectors.

Slower adoption of EV and high interest rates have led to excess inventory among automotive clients, NXP’s largest business segment.

In Q4 2024, NXP reported US$3.11 billion in revenue, slightly above analysts’ expectations.

However, its industrial and IoT business saw a 22% decline, while the automotive and mobile units dropped 6% and 2%, respectively.

Despite a cautious forecast, NXP’s stock rose 2% in extended trading after surpassing Q4 earnings expectations.

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