Dutch chip maker NXP Semiconductors sees growth in “physical AI” for industrial systems like logistics and robotics, CEO Rafael Sotomayor says. The company also excels in automotive chips, with expanding applications in drones and factory robots.

NXP’s Q4 earnings beat expectations, with first-quarter revenue expected to rise 11% to $3.15 billion. The industrial chips segment is projected to grow 20%, fueled by global data center expansion and demand for energy storage and factory automation.

Despite positive forecasts, NXP’s shares fell 5% as investors seek more evidence of sustainable growth. The company anticipates growth driven by newer vehicle models and electric cars with advanced features, positioning them well for the future of automotive technology.

NXP has adapted to geopolitical tensions by enhancing regional production capabilities. Demand for chips in the automotive industry has stabilized, with carmakers and suppliers increasing orders to avoid potential AI-driven shortages and supply chain disruptions.

CEO Sotomayor expresses optimism for NXP’s new product growth as inventory adjustments are resolved. The company is poised to benefit from the evolving automotive landscape and increasing adoption of AI-driven technologies.

Read more at Yahoo Finance: NXP CEO says demand for ‘physical AI’ boosting outlook