Dark Clouds Have Gathered Around Xilinx's Outlook, but Fundamentals Are Sound
It's been a long road downhill for Xilinx (NASDAQ: XLNX). The pioneer of field-programmable gate arrays (FPGAs) -- a widely used circuit that can be reprogrammed post-manufacture -- got hit in 2019 as the trade war between the U.S. and China heated up. With the coming economic fallout from the coronavirus lockdown, the company's growth prospects for the immediate future look grim. Share value has been nearly cut in half from all-time highs reached early last year.
However, Xilinx is well-positioned to ride out the storm. Profit margins remain high even though sales have tumbled, and the balance sheet is in good shape. The stock can't yet be called a value play, but it's worth keeping an eye on as the global economic situation evolves in the coming months.
Image source: Xilinx.
Source Fool.com
