Re:Nvidia to Acquire Mellanox for $6.9B
by chx on Monday March 11, 2019 @12:28PM
(#19360235)
Xilinx is badly overpriced, no matter how you look at it. You could compare its P/E to similar semiconductor companies, you could compare it to all US companies, you could even look at the predicted P/E growth and it's still overpriced. Every analyst I am aware of currently advises you stay away from XLNX.
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> Xilinx is badly overpriced, no matter how you look at it.
Is it, really?
FPGA's are now all over HPC, the 5G rollout is going to put a LOT of really expensive FPGA's in new towers, and high-end networking gear is about to get a bump due to PCI going up.
I don't know how much damage the Intel acquisition did to Altera, but if Altera has been AWOL with big customers due to the Intel acquisition, Xilinx may have a massive amount of customer wins locked in for a very long time.
I wish Xilinx would die in a hot flaming pit of Hell for many and various reasons, but they are the 500lb gorilla of FPGAs.
Well, let's look at numbers, shall we? XLNX P/E is 37, INTC P/E is 12, MRVL P/E is 22.8, AVGO is 23.19, the current S&P 500 PE is 21.34. Of course P/E is just one number but it's certainly one important number. Do you have a better comparison that makes XLNX at this price an alluring stock?
My original comment reacted to nVidia acquiring Xilinx and I am trying to explain why that won't happen: it's too expensive.