The Car Industry Is Turning Around Right Now, Semiconductor Giant Says
Microchip maker NXP Semiconductors (NASDAQ: NXPI) is a giant of its industry. With trailing revenue of $12.3 billion and a $46 billion market cap, it's one of the largest companies in the semiconductor sector. NXP is also a long-established leader in automotive computing, claiming a market share of more than 30%.
NXP's massive financial exposure to the supply and demand mechanics of car-bound microchips gives this company a unique perspective from which it can feel the pulse of the car industry. That's especially true in the midst of a long and painful shortage of chips used in infotainment panels, engine controls, battery management harnesses, and other modern car systems. So when NXP speaks up about the health of the automobile market, investors in companies like General Motors, Ford Motor Company, Toyota, and Tesla should sit up and take notice.
The company reported second-quarter results on Monday evening. NXP saw sales rise by 28% year over year to $3.31 billion, led by a 36% jump in automotive product sales.
Source Fool.com
