Friday, March 22, 2019

Chips: Zacks Likes Xilinx (XLNX)

So do we.

XLNX Xilinx, Inc. daily Stock Chart

After hitting an all-time high yesterday ($130.57) the stock is falling back along with the wider market, down 58 cents at $129.47.

From Zacks:
Chipmakers on Fire: 3 Under-the-Radar Stocks to Win
Xilinx, Inc. (XLNX - Free Report) designs and develops programmable devices and associated technologies. The San Jose, CA-based company has been progressing by leaps and bounds from healthy sales of chips for data centers as well as 5G wireless networks.
Xilinx has also seen solid demand for its other 5G products, including the one-chip combination of analog radio chips and digital processors. Tristan Gerra, a senior research analyst with RW Baird, added that “we think Xilinx will continue to see design win activity for 5G in multiple years ahead.”
Xilinx currently has a Zacks Rank #1 (Strong Buy). In the past 60 days, the company has seen nine earnings estimates move north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 6.1% in the same period. 
The company’s expected earnings growth rate for the current year is 23.3%, more than the Semiconductors - Programmable Logic industry’s projected gain of 22.7%. The company has outperformed the broader industry so far this year (+52.7% vs +48.3%)....MORE
Also at Zacks, March 19, "Xilinx (XLNX) Gains As Market Dips: What You Should Know"

Previously on Climateer:
Feb 28
"Top-Rated Chipmaker Xilinx Gets Big Price-Target Hike On 5G Prospects" (XLNX; NVDA)
Although the stock is more extended than NVIDIA was at a similar stage of development, XLNX is clearly the new "It Girl" of the chip world. (sorry NVDA)...
... IBD has been cheerleading the stock for a while now and we have a few posts as well:
Feb 6
Watch Out NVIDIA: "Amazon, Huawei efforts show move to AI-centric chips continues"
This move toward specialized chips is something the cognoscenti have been talking about for a few years, see after the jump if interested....
Jan 29 
A Look At the Components Of the PHLX Semiconductor Index (SOX)
Jan. 24
Watch Out Nvidia, Xilinx Is Performing (reports, beats, pops) XLNX; NVDA
Xilinx with their field-programmable gate array approach versus Nvidia's more generalist chips is an example of the type of competition experts were predicting NVDA would be facing, some over two years ago, links after the jump...
Sept 2018 
Hot Chips 2018 Symposium on High Performance Chips
Sept 2018 
Chips: "A Rogues Gallery of Post-Moore’s Law Options"
Aug 18
Ahead of NVIDIA Earnings: The Last of the "Easy" Comparisons (NVDA)
Beating that Q3 2017 EPS, 90 cents, by double i.e. $1.80 or more, is doable but AI and data centers will have to pick up the slack from the Q1 and Q2 cryptocurrency bump that started declining with Bitmain and other miners use of ASICs rather than GPU's.

Going forward the trend toward specialist proprietary chips, see Tesla's development of their own chips etc, etc will leave NVIDIA with a couple holes in the potential addressable markets they will want to fill.

Additionally, the smaller pups, some still in stealth, are nipping at the big dog's heels, making it more expensive for NVIDIA to maintain their edge in architecture....
Aug 2018
Artificial Intelligence Chips: Past, Present and Future
May 2018
Chipmakers Battle To Power Artificial Intelligence In Cloud Data Centers" (AMD; NVDA; XLNX; INTC)
May 2018 
"Xilinx Analyst Day Plays Heavy on AI" (XLNX)
May 2018
"Intel vs. Nvidia: Future of AI Chips Still Evolving" (INTC; NVDA)
Dec. 2017
“'The Ultimate Trading Machine' from Penguin Computing sets Record for Low Latency"