Marvell Technology’s MRVL CEO Matt Murphy appeared on CNBC’s “Mad Money” on Tuesday and said he was optimistic about a recovery in the automotive market.
What Happened
Pointing at China as a source for his positive stance on the automotive market, Murphy said, “We believe by the time the car models that we’re in, which are all the brand new models ramping next year, there are certainly very positive signs of production resuming, and I think the first leading indicator is certainly China — China auto — with a strong recovery today.”
Marvell is a semiconductor firm that works on integrated circuits and supplies ethernet for connected vehicles.
Describing the developments at the company, Murphy said, “We’ve got design wins [for Marvell’s ethernet products] across 16 different car OEMs (original equipment manufacturers), three of which are going to ramp up this year, and then the balance of them are going to be for model year ’21.”
Why It Matters
According to CNBC, Chinese car sales rose 11.7% year over year in May, while rising 4.4% in April compared to a year earlier.
Car sales in China had fallen as drastically as 79% in February during the coronavirus caused lockdowns, however since April pent-up demand has been driving sales.
During the first four months of the year, car sales totaled 4.45 million units, lower by 32.7% compared to a year prior, reported Xinhua, China’s news agency.
Price Action
Marvell Technology shares traded 1.79% higher at $35.23 in the after-hours session on Tuesday. The shares had closed the regular session 4.94% higher at $34.61.
Image Credit: Marvell Tech
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