NXP Stock Slumps After Chipmaker Issues Soft Outlook—Watch This Key Price Level

Core Insights - NXP Semiconductors N.V. shares declined significantly after the company provided a weaker-than-expected outlook for the current quarter, citing reduced spending from automotive customers and rising geopolitical risks [1][2] - The company projected third-quarter net sales between $3.15 billion and $3.35 billion, with the upper limit falling short of analyst expectations of $3.36 billion [2] - NXP's automotive segment sales fell 7% year-over-year to $1.73 billion, marking the largest quarterly revenue decline in over three years due to macroeconomic uncertainties [2] - Geopolitical tensions, particularly between Beijing and Washington, are increasing risks for NXP, as China accounted for approximately 33% of the company's total revenue last year [2] Stock Performance and Technical Analysis - NXP shares have been trading within a rising wedge pattern over the past year, indicating potential price reversal after an uptrend [3] - The stock was down 7.9% at $261.38 in premarket trading, suggesting a significant sell-off following the earnings report [3] - Investors should watch the $248 level for potential support, as it aligns with the lower trendline of the rising wedge pattern [4] - A resumption of the longer-term uptrend may occur if the relative strength index (RSI) indicates an oversold condition below 30 at the same time [4]