Xilinx is the leader when it comes to FPGA or field-programmable gate arrays. It holds a solid 54% market share, much above second-placed Intel at 32%. Semiconductor stocks are among the best technology stock to buy today. Companies like Marvell Technology Group and Xilinx have performed well since the March 2020 market downturn. Xilinx is based in Silicon Valley but has a global presence with offices in Europe, East Asia, India, and Australia. Xilinx has maintained high gross margins of around 70% and has good financial metrics. It may be one of the reasons why a giant like AMD decided to acquire Xilinx. The all-stock deal was announced in October 2020.
Xilinx Reports 3Q2021 Earnings Results
On 27th January 2021, Xilinx reported its third-quarter 2021 earnings results. Revenues jumped 11% year-on-year from $723 million in Q32020 to $803 million. Operating income was also up 8% year-on-year from $159 million in Q32020 to $172 million. Earnings per share on a diluted basis were slightly up from $0.64 in Q32020 to $0.69 in Q32021. Xilinx CEO Victor Peng said, “Third quarter revenues exceeded the high end of our guidance, delivering both sequential and annual growth, demonstrating strengthening business conditions and solid execution.” If you are looking to buy semiconductor stocks now, then Xilinx is one company that you may want to look at more closely.
Xilinx’s price action shows a long-term uptrend. A look at the stock’s monthly chart shows prices rising over the last decade. Two major corrections happened in 2019 and 2020. However, the stock continues to make higher highs. Xilinx was trading around $122 on 19th March 2021 at a P/E ratio of just over 48. The stock has been dropping lately due to the larger trend of Nasdaq falling. Another peer of Xilinx also experienced a similar downtick. Marvell Technology Group is down 12% over the last 30 days. However, Marvell has gained an impressive 140% since the March 2020 fall.