Xilinx Stock Forecast: 16.71% Since Our Bullish Article

Xilinx Stock Forecast

Xilinx Inc. (Nasdaq: XLNX) stock price has increased 16.71% since I Know First published a bullish article for the company on Seeking Alpha. The article predicted the company would turn around its stagnant revenue growth while offering a hefty dividend yield to investors.

HIMX stock analysis
Xilinx is the world’s largest fabless semiconductor company founded in Silicon Valley in 1984, and is subject to the same industry cycles as its rivals. After experiencing massive growth throughout the last decade in revenues, it has now tapered off over the last few years. This happens constantly in the semiconductor market, as companies over invest when prices are good, causing an oversupply and prices fall. While market factors are harming the company’s short-term performance and outlook, the company is still financially healthy.

Despite, Xilinx’s main competitor, Intel, completing a $16.7 billion acquisition of programmable-chip maker Altera Corp, another competitor, our algorithm predicts that Xilinx will have a bright future in the long-run as well as the short-run. As indicated in the above diagram, our 11th March forecast for the year ahead predicts XLNX to have a very strong positive signal of 142.69 with a predictability ratio of 0.45.

A lot of independent analysts also believe that investors should remain bullish over XLNX  stocks too. They are confident that customers who are looking for faster microprocessors may now become concerned about becoming overly dependent on Intel. Many customers may prefer to do business with a company that only makes programmable-chips – such as Xilinx.  The fact that Xilinx’s shares have risen about 18 percent since March 27 – when the Wall Street Journal reported that Intel and Altera were in talks – really highlights the case for their argument too.

What makes the company truly attractive to investors, though, is its solid commitment to returning value to its shareholders. The company’s executive team continues to stress this importance whenever given the chance, and its confidence in its future means the company is sure to continue to increase its dividend and a further increase in shareholder value.