Analyst Note| Abhinav Davuluri, CFA |
Xilinx reported fiscal second-quarter results ahead of FactSet consensus expectations, led by record automotive revenue and strong wireless sales related to 5G. Due to the pending merger between Xilinx and AMD, the firm did not host a conference call to discuss the results or provide guidance. Our probability-weighted fair value estimate for Xilinx remains $167 per share. We assign a 75% probability to Xilinx shareholders receiving $193 per share of value from AMD of (based on our $112 combined fair value times the exchange ratio of 1.7234 shares). The remaining 25% probability stems from our unchanged $90 fair value for standalone narrow-moat Xilinx.