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Xilinx Analyst Day Plays Heavy on AI

First, the bad: Analysts are not entirely comfortable with the company’s plan to boost spending this year by 10%, slightly faster than projected rise in revenue of 8% to 10%, for the fiscal year that began this quarter. Morgan Stanley’s Joseph Moore, reiterating this morning an Outperform rating and a $78 price target, defends the company’s spending, writing that unlike in the past, spending is "more directly tied to enthusiasm about future prospects” such as AI. The good news, by most accounts, was the company’s expectation that its addressable market for chips in the data center will rise to $4.6 billion by 2023, a compound annual growth rate of 67% from just $600 million in 2019.