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LAS VEGAS — Semiconductor stocks exposed to the automotive market have hit a rough patch, but one top industry executive speaking at the CES 2024 tech conference says it should be a
short-lived downtrend. ↑ X NOW PLAYING Why ARM Stock Could Dominate The Next Semiconductor Supercycle MICROCHIP TECHNOLOGY (MCHP) and MOBILEYE GLOBAL (MBLY) both recently warned of
disappointing sales due to automakers pausing chip purchases. Speaking at CES 2024 late Tuesday, INTEL (INTC) Chief Executive Pat Gelsinger said the downturn stems from disruptions to the
supply chain caused by the Covid pandemic. The Covid emergency, which started in early 2020, caused a "catastrophic disruption" to the supply chain, Gelsinger said. Automakers had
expected a downturn in car sales so they stopped buying chips. When that downturn didn't happen, the supply chain had difficulty ramping back up. INTEL IS MOBILEYE'S MAJORITY OWNER
Supply caught up with demand last year. Automakers have admitted recently that they now have too much chip inventory on hand. "There's an accordion effect that always happens in
supply chains," Gelsinger said. "I believe this is the last correction cycle as a result of (the Covid disruption)." Intel is the majority owner of Mobileye, a maker of sensor
systems for automotive safety and autonomous vehicles. Last week, Mobileye stock crashed after the company warned that 2024 sales will be below estimates because of excess inventory at its
customers. SENSOR MAKERS TOUT WINS AT CES 2024 Mobileye is among a plethora of car sensor technology firms exhibiting at CES 2024. Others include AEVA TECHNOLOGIES (AEVA), ARBE ROBOTICS
(ARBE), CEPTON (CPTN), HESAI TECHNOLOGY (HSAI), INNOVIZ TECHNOLOGIES (INVZ), LUMINAR TECHNOLOGIES (LAZR) and MICROVISION (MVIS). The tech from those companies covers the gamut of vehicle
sensors including lidar, radar, thermal and camera vision. Mobileye cryptically announced that "a major Western automaker" has awarded the company a series of production design
wins. The wins cover its automated driving systems and are set to roll out in 17 internal combustion engine and electric vehicle models in 2026. AEVA GETS DAIMLER TRUCK CONTRACT Also at CES
2024, Aeva announced that Daimler Truck had selected it to supply long and ultralong range lidar for an autonomous commercial vehicle program. Last week, Aeva said it contract from "one
of the top global automotive OEMs," or original equipment manufacturers. Elsewhere at CES 2024, Intel announced a first-generation, AI-enhanced system-on-chip for software-defined
vehicles. Chinese electric-car maker Zeekr has signed on to use the new chip. Intel chips already are in more than 50 million vehicles, powering infotainment, displays and instrumental
clusters. On Monday, Microchip lowered its revenue guidance for the December quarter as customers cut orders amid a weakening economic climate. _Follow Patrick Seitz on X, formerly Twitter,
at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks._ YOU MAY ALSO LIKE: CES 2024 News: AI Headlines World's Largest Consumer Tech Trade Show
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