Skip to Content
Morningstar
Get 14 Days Free

Xilinx Inc XLNX

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Xilinx Delivers Record Automotive Revenue During Fiscal Fourth Quarter; Shares Undervalued

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

Xilinx reported fiscal fourth-quarter results ahead of our 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. We are maintaining our probability-weighted fair value for Xilinx of $157 per share. We assign a 75% probability to the value that Xilinx shareholders will receive from AMD of $179 per share (based on our $104 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. We think prospective investors should find current levels attractive.

Read Full Analysis

Company Profile

Business Description

Founded in 1984, Xilinx is the leader in FPGAs by market share. Its chips are critical in the performance of various devices in the communications, data processing, industrial, consumer, and automotive markets. Xilinx designs and sells chips, but it outsources manufacturing to third-party chip foundries such as TSMC.

Contact
2100 Logic Drive
San Jose, CA, 95124
T +1 408 559-7778
Sector Technology
Industry Semiconductors
Most Recent Earnings Mar 31, 2021
Fiscal Year End Apr 2, 2022
Stock Type Cyclical
Employees 4,890

Related

Market Update
Which Sectors Saw the Biggest Valuation Boosts?
Three sectors saw the most fair value increases after the first-quarter earnings season.
Jakir Hossain
Stock Analyst Update
AMD for Growth in 2021; FVE to $77; Xilinx FVE to $126
We raise our fair value for no-moat AMD to $77 per share on a probability-weighted basis. We assess AMD’s standalone fair value at $67 per share. We assign a 75% probability of AMD’s acquisition of Xilinx closing, and our fair value for the combined entity would be $80 per share.
Abhinav Davuluri
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases
Several funds see value in basic materials and industrials.
Malik Ahmed Khan
Stock Analyst Update
AMD to Buy Xilinx; Enjoys Sharp Q3 Sales Growth
AMD reported strong third-quarter results that exceeded our expectations led by PC, server, and game console growth. The firm also announced it will purchase narrow-moat Xilinx in an all-stock transaction valued at $35 billion.
Abhinav Davuluri
Stock Analyst Update
Potential AMD-Xilinx Combination Would Turn Up the Heat
Our fair value estimates remain for both of the technology companies, but we think this deal would give AMD and Xilinx a competitive edge against Intel and Nvidia.
Abhinav Davuluri
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases
Several funds see value in basic materials and communication services
Nupur Balain
Stock Strategist Industry Reports
What a Trade War Could Mean for Tech Stocks
At this point, it looks like more a blip than a roadblock.
Brian Colello
Commentary
First-Quarter Trends in 14 Charts
A visual take on the term.
Tom Lauricella
Premium Article
5 Upgraded Stocks
One new stock under coverage earned a narrow moat in January, while four other firms experienced fair value increases of more than 10%.
Susan Dziubinski
Our Picks
11 Still Expensive High-Quality Tech Stocks
Despite the sector's pullback, these narrow- and wide-moat names look overvalued to us.
Susan Dziubinski
Quarter-End Insights
3 Tech Picks for the Patient
With volatility creeping back into the market and most technology and telecom names trading at or above fair value, we fall back on our moat methodology
Peter Wahlstrom
Stock Strategist
Tailwind From China Propels Growth for This Chipmaker
Infrastructure buildouts mean higher demand for Altera's programmable logic devices.
Andy Ng
Stock Strategist Industry Reports
What the 28-Nanometer Shortage Means for the Chip Industry
Near-term winners include ATMI and KLA-Tencor.
Brian Colello
Quarter-End Insights
Our Outlook for Technology Stocks
High-quality large caps offer the most compelling valuations.
Grady Burkett
Stock Strategist
A Near-Duopoly Within the Semiconductor Space
PLD chipmakers Xilinx and Altera operate in a compelling niche.
Andy Ng
Stock Strategist Industry Reports
Looking across the Semiconductor Landscape
We examine key themes for the semiconductor industry in early 2010.
Andy Ng
Stock Strategist Industry Reports
Looking across the Semiconductor Landscape
We review recent trends and developments in the semiconductor industry.
Andy Ng
Quarter-End Insights
Our Outlook for Technology Stocks
The end of inventory destocking.
Toan Tran
Stock Strategist Industry Reports
Chips in a High-Stakes Poker Game
How to play the cycles in the chip foundry industry.
Brian Colello
Stock Strategist
Why You Should Buy When the Chips Are Down
We highlight which semiconductor stocks are attractive and which to avoid.
Larry Cao

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.