I took an online survey about 5G yesterday. One of the questions was would I pay more to have a 5G plan and would I upgrade my phone to a 5G phone when they are available. My answer to both questions was NO. However, wireless carriers don’t have a choice, they must upgrade their network to handle 5G and one of the beneficiaries of this upgrade will be Xilinx, Inc. For example, Carriers in South Korea and China plan to roll out 5G networks this year, and handset makers, including Samsung Electronics Co Ltd , plan to make phones work on those networks.
Xilinx designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips built into prototype network gear.
Xilinx Inc. reported their quarterly earnings yesterday. The company reported fiscal fourth-quarter net income of 95 cents a share vs 56 cents a share, in the year-ago period. In addition, revenue rose to $828.4 million from $638.2 million in the year-ago period. Despite beating expectations, the stock sold off.
I would think the sell-off is due to profit taking because the stock price is up over 100% in the last 12 months.
The chart suggests to go long at the weekly demand at $110.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.