July 23, 2025 /SemiMedia/ — NXP Semiconductors CEO Kurt Sievers said the prolonged inventory correction in the automotive chip sector may finally ease this year, setting the stage for renewed demand in the company’s core business.

Speaking during the second-quarter earnings call, Sievers noted that NXP's automotive revenue is showing strong momentum moving into the third quarter, despite persistent challenges from global supply chain disruptions and market uncertainties. “Our automotive business is accelerating massively from the second into the third quarter,” he said.

Automotive chips represent over half of NXP’s total revenue. The segment has been under pressure due to trade-related disruptions and sluggish vehicle demand, but Sievers expects orders from both distribution partners and direct customers to pick up in the coming quarters.

NXP forecast third-quarter revenue between $3.05 billion and $3.25 billion, implying a slight year-over-year decline of about 3%. Adjusted earnings are projected to range from $2.89 to $3.30 per share. The midpoint of the revenue outlook came in below top-end analyst estimates compiled by Bloomberg.

Sievers reaffirmed that the second quarter marked a potential turning point, as customer demand began to stabilize after a prolonged period of oversupply.