NXP Semiconductors cites improving order trends and higher revenue projections for data centers and automotive sectors.
NXP Semiconductors revised its outlook upward, citing stronger demand in automotive and data center markets. The company now expects data center revenue to rise from $200 million last year to $500 million in 2024, driven by solid book-to-bill ratios and extended lead times.
Automotive, which accounts for 58% of NXP’s business, is projected to grow as inventory headwinds ease in North America and Europe. The company also raised prices to offset inflation in energy, transportation, and materials, with potential further increases in the second half.
Management indicated plans to return excess free cash flow to shareholders through dividends and buybacks, reflecting confidence in sustained demand recovery.