5G Stock Xilinx Stock Rallies on Easing Chinese Sale Restrictions
Xilinx (NASDAQ: XLNX) has had to deal with some serious collateral damage from the U.S.-China trade war the last couple of years. Trade tensions devolved into lost sales for the field programmable chip (FPGAs) leader after tech giant Huawei got blacklisted in 2019, and the current state of world affairs brought on by you-know-what put the kibosh on other segments (like 5G mobile network rollout), which otherwise could have offset the loss of the large customer. Late in 2019, it was deduced that Huawei revenue was a high single-digit percentage of Xilinx's total revenue.
But even though not much has happened since a phase one trade agreement was signed between the U.S. and China at the end of last year, Xilinx provided an update to the just-concluded spring 2020 quarter with some good news.
As originally reported by Reuters, in mid-June the U.S. Commerce Department signed off on some rule changes that would allow U.S. firms to begin doing business with Huawei again, specifically pertaining to the setting of 5G wireless network standards. Since 5G is part of a greater tech trend involving everything from the "Internet of Things" to autonomous cars to AI, any reduction of tensions is a big deal for the semiconductor industry.
Source Fool.com
