At last check NXP shares were trading up 3.8% at $139.89.
The company reported preliminary third-quarter revenue of $2.27 billion, up from its previous forecast of $2 billion. Analysts were expecting revenue of $2.01 billion in the quarter.
Analysts at Piper Sandler maintained their overweight rating on the stock while raising their price target to $160 a share from $130.
The firm said that the results were "driven by improving demand across all the company's end markets, particularly automotive and mobile," Bloomberg reported.
Analysts also said the results show that the broader recovery in chip sales is still on track.
Raymond James also affirmed its outperform rating while raising NXP's price target to $150 from $130.
The firm says that the upside in the beat was "substantial, with particular strength in auto and mobile... the magnitude of the upside was likely better than expected," for investors, Raymond James said, according to Bloomberg.
Jefferies analysts maintained a buy rating while increasing its price target to $161 from $150.
The firm said that the beat was due to "a material improvement in demand across all end markets," according to Bloomberg.
The investment firm also said that the company's leverage ratio could fall below the threshold that will enable the company to resume buybacks. That along with high capital returns should translate into an expanded price-to-earnings multiple.
“Additionally, demand improved in both our direct and distribution channels," said NXP Chief Executive Kurt Sievers in a statement.
The company is scheduled to report results on Oct. 26.