NXP Stock Jumps More than 6% on Strong Q2 Guidance

NXP stock rises over 6%

The April 30 trading session started with NXP Semiconductors’ (NXPI) stock rising 6.25% in the first half, making it the top gainer on the NASDAQ. The stock rose as the company reported stronger guidance for the second quarter.

NXP Stock Jumps More than 6% on Strong Q2 Guidance

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NXP reported its first-quarter earnings were in line with estimates. Its first-quarter revenue fell 8% year-over-year to $2.09 billion as automotive, industrial, and mobile declines were partially offset by growth in communications infrastructure. Rival Texas Instruments (TXN) also saw growth in its communications infrastructure as its 5G rollout boosted demand.

NXP expects its second-quarter revenue to rise 5.3% sequentially to $2.2 billion, whereas TXN guided for flat sequential revenue growth for the quarter. NXP’s strong guidance sent its stock up more than 6% and TXN’s stock up 1.2%.

AMD’s stock falls over 2.5%

While NXP’s stock rose, Advanced Micro Devices’ (AMD) stock fell 2.6% ahead of its first-quarter earnings release after the market closes. AMD is one of the best-performing semiconductor stocks of 2019, growing 50% year-to-date. The stock has already priced in strong revenue growth from a market share gain in the PC and server processor spaces.

However, AMD’s stock fell 2.7% between April 24 and 29 as Xilinx’s (XLNX) and Intel’s earnings were affected by demand weakness in the data center market. AMD’s stock should rise if the company’s earnings beat estimates, which seems unlikely since none of the semiconductor earnings released so far could beat estimates. In fact, Xilinx, the only chip stock that outperformed AMD, also missed EPS estimates by 2.1%.

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