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Xilinx, Nvidia Best 'Idiosyncratic' Chip Names in 2018, Says Goldman

Shares of programmable chip maker Xilinx (XLNX) are up $2.91, over 4%, at $73.40, as the Street responds favorably to the company’s announcement late yesterday its chief executive, Moshe Gavrielov, will retire this month, passing the reins to Victor Peng, a 10-year veteran of the company who has been serving as chief operating officer. Interestingly, Xilinx is one of the few bright spots that Goldman Sachs’s Toshiba Hari sees in 2018, after concluding that semiconductor stocks will not outperform for a third year in a row in 2018. With the median return of chip makers, and chip-equipment stocks, at 58% for 2017, and with expansion in stock multiples to 15 times at the end of the year from 14.9 times a year earlier, on average, Hari now sees multiple risks to the group.