Xilinx reported overwhelming Q3 results, wherein its earnings and revenues, both, came ahead of the respective Zacks Consensus Estimate and marked a solid year-over-year improvement as well. Moreover, the company beat its own guidance at every point. Going ahead, we believe that rising demand for 28-nm, 20-nm and 16-nm nodes is positive for xilinx. Moreover, favorable product mix (higher Industrial, lower wireless) will help in gross margin expansion in the forthcoming quarter. We believe that Xilinx is well positioned to tap the opportunities arising from an increase in adoption of AI technologies, 5G connectivity, autonomous vehicles and IoTs, which will drive growth over the long-run. The company’s product launches should further aid revenues. Nonetheless, the company’s two biggest markets, India and China, are still facing the challenge of slow wireless deployments, which makes us slightly cautious about its Communication business.