Marvell Technology CEO Matt Murphy on Tuesday expressed optimism about a backlash in the car market.
In an appearance on "Mad Money," Murphy pointed to China as a source of prospects. The semiconductor company, which develops integrated circuits, supplies ethernet to cars. Connected cars.
"We think then that the car models we are in and which are the brand new models that will hit next year, there are certainly very positive signs that production will resume, and I think the first leading indicator is definitely China ̵
China, the country where the global coronavirus outbreak occurred, has been used as a barometer by economists and market players to measure the pace of economic recovery from the pandemic. Sales of vehicles in the Asian country, the world's largest car market, increased for the second straight month, and induced hope in the US markets.
The China Association of Automobile Manufacturers, the country's leading car group, said Tuesday that car sales were up 11.7% year over year in May. Sales increased by 4.4% in April compared to the previous year.
The automotive industry was shaken by coronavirus shutdowns that made millions of people around the world in quarantine for months to slow the spread of the deadly disease.
Car production was halted because of the viral crisis, but there are signs that the situation is improving, Murphy said.
"The exciting part is that we have now secured design gains for our Ethernet products, which are – think of it as the backbone network in all future automotive systems," he said. "We have received design gains from 16 different car OEMs (manufacturers of original equipment), three of which will increase this year, and the rest of them will be for model years & # 39; 21."
by Marvell rose 5% to $ 34.61 at Tuesday's close.
– Reuters contributed to this report.
Disclosure: Cramer's charitable trust owns shares in Marvell Technology.