Xilinx Inc XLNX

Xilinx deflected headwinds in its first fiscal quarter to report revenue right in line with its upwardly revised guidance. Overall, the data center group and wired and wireless group posted strong sequential growth that helped to offset weakness in the automotive, broadcast and consumer  and aerospace, defense and industrial groups. While Xilinx is experiencing no disruption to its supply chain as a result of COVID-19, the firm will need a rebound in demand in its ABC and AIT groups--57% of revenue--for a return to top-line growth. We maintain our $90 fair value estimate for narrow-moat Xilinx, and currently view shares as overvalued.