NXP Semiconductors NV's stock experienced a sharp intraday plummet of 7.28% during Tuesday's trading session. The significant drop followed the release of the company's latest financial results.

Despite reporting fourth-quarter earnings and revenue that exceeded analyst estimates, investors reacted negatively to the company's forward-looking statements. NXP provided first-quarter earnings guidance ranging between $2.77 and $3.17 per share, which created uncertainty compared to Wall Street's expectations of approximately $2.95 per share. Additional concerns contributing to the sell-off included disappointing growth in NXP's automotive segment, which represents over half of the company's revenue. The segment's 4.8% increase fell short of market expectations, highlighting ongoing worries about the pace of recovery in the automotive chip market. Furthermore, the company's full-year 2025 revenue showed a 2.7% decline year-over-year, adding to investor apprehension despite positive near-term guidance.

The Dutch chip maker had reported higher quarterly sales and guided for further revenue growth, as management sees rising demand. However, the market's reaction indicates concerns over the mixed signals from the earnings report and future profitability outlook.