If you do not have any interest in the stock exchange, then you may feel a need to turn away from this article now. It may not be the best decision, but it could save you five to ten minutes of your life that you could spend doing something else and not reading about money-earning stocks. If, however, you are interested in the stock exchange or are interested in learning about stocks that could earn some income, THEN stick around. In this article we will discuss the trending product known as Xilinx and why it is built for growth on the stock exchange.
What Is Xilinx?
Xilinx ISE is a form of computer software technology developed by the American technology company Xilinx, Inc. The software is utilized as a means of synthesizing and analyzing computer program developments. Many major companies utilize this software technology and, in fact, Xilinx ISE has been used in military products because of its accuracy.
What Are The Reasons Why Xilinx Is Built For Growth?
Despite the popularity of Xilinx, the product’s second-quarter market results of 2017 were considered a ‘mixed bag’. Technically, the company had not reached its projected top-line sales expectations; however, the revenue acquired measured in at $620 million as compared to the previous year’s $579 million. While it is a mixed bag, Xilinx remains a strong market investment with the revenue of the quarter being at the midpoint as compared to the Wall Street’s expectation. It isn’t surprising then to see that Xilinx stocks are on an upward trajectory following the quarterly report.
Of course, there is more to the Xilinx company than merely numbers and short-term growth predictions. The business has been setting itself up for a longer period of growth by targeting fast-growing field-programmable gate array chip markets, also known as FPGA markets. By looking more intently at these trends highlighted by the company’s management on 2017’s earnings, it is possible to determine how Xilinx is moving and in what direction.
- The Advanced Products Are Gaining Momentum
According to the revenue of sales from Xilinx’s advanced products, the company is now supplying approximately 52% of the top line goods as compared to the previous year’s 46%. This is not surprising as the developers are targeting the more lucrative markets, such as the advanced driver assistance systems.
Reports from 2017 have found that the Xilinx Zynq programmable chip has been the most successful product of the year. According to the numbers, the sales of this product increased by a dramatic 65% from the previous year and accounts for approximately 12% of the corporation’s overall annual sales. Moreover, the programmable chip is not predicted to lose any momentum based on the increased use of these chips in the automotive space industry.
The FPGA programmable chip is a product that can be optimized to engage in various tasks after the chip has been manufactured. The infrastructure of the chip means that the program developer is able to modify the chip to perform tasks that cannot be completed by a traditional CPU (central processing unit) or GPU (graphics processing unit). The traditional units cannot perform these tasks because they have a fixed structure, whereas the chip does not.
Consequentially, component suppliers are looking at the FPGA chips to improve the performance of their components and reduce the cost of the items. Xilinx’s sales in these chips have grown dramatically with reports showing an annual rate of 60% since 2013. Analysts say that the trend will continue and it can be expected to increase with a client base constantly expanding.
- The Cloud May Be Down, But It Is Not Out
According to statistics, the company’s revenue in the communications and data department dropped by approximately 5% from 2016 to 2017. This has affected Xilinx’s top line as this income contributes to 37% of the company’s overall revenue; however, investors should not panic because recent deals made with the FPGA could improve the situation.
Previously, Xilinx acquired contracts from three well-known computing clients – Alibaba, Huawei, and Amazon. The cloud companies decided to use Xilinx’s services to enhance their infrastructure and speed up the training procedure of models in the cloud. The purchase was additionally beneficial because it is a cost-effective option delivering a stronger performance for energy consumed in the structure. Consequentially, it is a useful tool that has a strong prediction of future product growth.
- Xilinx Dominating FPGAs
It has been noted that the use of FPGAs in fast-growing industries will increase market revenue from $6.9 billion in 2016 to approximately $12.1 billion in 2024. Due to its prime position in the market, Xilinx is predicted to enter this industry and increase the market share by approximately 65% by 2022. According to company directors at Xilinx, it has a 12-month lead over businesses in the FPGA group and they plan to maintain the lead by working at the launch of the seven-nanometer technology (hopefully up and running by 2019).
Compared to Xilinx, the chips from Intel within the FPGA market utilize the ten-nanometer technology format and the company did not indicate an estimated date for the launch of the product. This means that the Xilinx next-generation chips are predicted to be more popular, despite being presented using a smaller technology format. However, by using a smaller format the chips will be more energy-efficient and reduce the overall manufacturing expenses.
Based on these facts, it is clear to see why market analysts predict Xilinx’s growth to continue at an upwards trajectory for the next five years. Investors in this stock should be interested to know this predicted trajectory and enjoy the potential leadership of Xilinx within the FPGA industry.
As can be seen, there are several factors to consider when examining Xilinx and its position in the stock market. Using this information, however, you will find that xilinxfpga board low cost is a growing product and can be a beneficial investment to consider over a long-term period.