Marvell Technology CEO: chip shortage ‘is very persistent right now’

Marvell Technology Inc (NASDAQ: MRVL) reported market-beating quarterly results on Monday, after the bell. According to CEO Matt Murphy, the global chip shortage is improving, but there is still significant room to cover.

CEO Matt Murphy’s comments on CNBC’s “TechCheck”

On CNBC’s “TechCheck”, the chief executive said on Tuesday:

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“The chip shortage is very persistent. We see supply improving in the second half of this year and leading into the next year, which is great, however, it’s not enough for the industry. I agree with secretary Raimondo’s remarks that this shortage is not going to be a quick fix.”

Being a $500 billion global industry, Murphy said, the semiconductor industry has multiple end markets, some of which may remain under pressure a bit longer due to the chip shortage compared to others.

Marvell Technology opened about 5% up in the stock market on Tuesday. Losing 1% later in the day, shares of the company are now exchanging hands at $50.44. This compares to a year-to-date low of $40.06 per share in early March.

Marvell Technology performed largely upbeat in the stock market last year with an annual gain of close to 80%. At the time of writing, the Nasdaq-listed company has a market cap of $41.33 billion.

The global supply and demand imbalance is independent of geography

Commenting on recommendations that Congress should pour in a minimum of $50 billion to fuel U.S. production, Murphy said:

“There’s an issue of global supply and demand imbalance that’s independent of geography. And then there’s certain national and economic security issues as well. These are also going to take time to fix, but that number ($50 billion) is in the ballpark of what we’ve been advocating for. As a member of the Semiconductor Industry Association’s (SIA) board, I commend the administration’s progress in realising that funding.”

Marvell Technology earned 29 cents per share in its fiscal first quarter versus the year-ago figure of 18 cents per share. The Hamilton-based company generated $832.3 million of revenue in Q1 – an increase from $693.6 million last year.

The financial update comes more than a month after Marvell acquired Inphi Corp. The semiconductor firm now expects its revenue to top $1.0 billion for the first in the current quarter (Q2).

In separate news from the United States, Coupa Software Inc also reported its quarterly financial results on Monday.