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Here's How Much You'd Have If You Invested $1000 in Xilinx a Decade Ago

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Xilinx ten years ago? It may not have been easy to hold on to XLNX for all that time, but if you did, how much would your investment be worth today?

Xilinx's Business In-Depth

With that in mind, let's take a look at Xilinx's main business drivers.

Xilinx Inc., founded in 1984, designs and manufactures a broad range of programmable devices and associated technologies. This includes high-performance, high-density programmable logic devices (PLDs) such as programmable system on chips and three dimensional ICs; adaptive compute acceleration platform (ACAP); software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken and peripheral component interconnect express interfaces as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity plus market-specific IP cores.

In fiscal 2021, Xilinx reported $3.15 billion of revenues. This San Jose, CA-based company classifies its products into two categories:

Advanced Products (70% of fiscal 2021 revenues) include Alveo, UltraScale+, Ultrascale and 7-series products.

Core Products (30%) include Virtex-6, Spartan-6,Virtex-5, CoolRunner- II Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/services.

The company provides solutions for electronic equipment makers in wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive and data processing markets.

The company sells its products and services through independent domestic and foreign distributors and via direct sales to the original equipment manufacturers (OEMs) and its electronic manufacturing service providers (EMS). Sales are generated by these independent distributors, independent sales representative or the company’s direct sales organization.

Starting first-quarter fiscal 2020, Xilinx changed its revenue reporting structure. Communications is now called Wired and Wireless Group (WWG). Data Center Group is reported separately and includes high-performance computing. While Aerospace & Defense, Industrial and Test plus Measurement & Emulation (TME) is called AIT, the Automotive, Broadcast and Consumer group is called ABC.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Xilinx ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in February 2012 would be worth $5,661.43, or a 466.14% gain, as of February 7, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 234.64% and gold's return of -0.49% over the same time frame.

Looking ahead, analysts are expecting more upside for XLNX.

Xilinx’s latest quarterly results reflect strength in broadcast, consumer, wired, wireless and industrial end markets. Strong performance across Europe, Japan and Asia Pacific was a tailwind. Moreover, growing demand for its 16-nanometer UltraScale+ family and Zynq platform are likely to remain major growth drivers. Moreover, ramp up in 5G rollout across multiple regions remains a positive. Strong momentum for the Vitis software development platform is a positive. Additionally, Solarflare acquisition would bring in incremental revenues in subsequent quarters. Shares have outperformed the S&P 500 over the past year. However, the ongoing industry-wide supply chain challenges are likely to keep hurting its near-term financial results. Additionally, increased logistics and component costs are expected to weigh on profitability.

Shares have gained 8.26% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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