By Katherine Hamilton
NXP Semiconductors shares climbed after the company's outlook impressed investors, bringing several other semiconductor stocks up with it.
NXP's stock rose 23% to $284.17 on Wednesday following its earnings report the previous evening. Meanwhile, shares of On Semiconductor gained 7%, Microchip Technology rose 6% and Analog Devices advanced 2%.
The Dutch chipmaker more than doubled its profit in the first quarter, citing strength in industrial and automotive processing to support vehicles that use software and physical AI.
NXP's outlook for the rest of 2026 is stronger than the company previously expected, Susquehanna analysts noted. It is now projecting double-digit percentage revenue growth, compared with the 6% to 10% guidance it previously shared.
Software-defined vehicles and physical AI have helped drive growth recently, management said, but the company is also gaining more visibility into its core business.
NXP's outlook gave investors a reason to think a broader industry recovery could be underway, Raymond James analysts said, which would be a good sign for other chipmakers that work with the auto and industrial industries.
Software content growth in vehicles continues to expand and is a bigger driver than unit volume or price increases, the Raymond James analysts said. Within industrial, processing solutions are driving growth, they said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
04-29-26 1029ET
