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Xilinx Stock Gets Price-Target Increase On 5G Prospects – Investor’s Business Daily


A Wall Street brokerage on Tuesday raised its price target on Xilinx (XLNX), saying the chipmaker is poised to benefit in a big way from the transition to 5G wireless. However, the report didn’t help Xilinx stock, which fell on Tuesday.




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Despite all the hype about fifth-generation wireless technology, consumer demand is an open question, KeyBanc Capital Markets said in a note to clients. So, the best way for investors to play the 5G transition is to bet on companies building the network infrastructure.

“At this point, we believe the most compelling way to benefit from the 5G upgrade cycle is on the infrastructure side, for which we recommend investors buy XLNX,” KeyBanc said. It said Xilinx has “outsized positioning in 5G.”

KeyBanc analyst John Vinh reiterated his overweight rating on Xilinx stock and raised his price target to 140 from 110.

Xilinx Stock Retreats After Hitting Record High

Xilinx stock dropped 1% to 122.78 on the stock market today. On Monday, Xilinx stock notched a record high of 126.29. Xilinx currently ranks No. 35 on the IBD 50 list of top-performing growth stocks.

At MWC Barcelona, formerly Mobile World Congress, smartphone vendors showed off their first 5G handsets. Samsung, LG, Huawei and others unveiled 5G smartphones at the trade show this week.

“While there has been significant hype surrounding 5G, it remains unclear to us whether this will drive an accelerated cycle for 5G handsets given the lack of a compelling use case and saturation in the high-end smartphone market,” KeyBanc said.

Primary consumer uses for 5G include faster mobile broadband speeds, augmented reality, real-time gaming, and enhanced video streaming.

At MWC, Xilinx and Samsung announced a collaboration that has resulted in the world’s first 5G New Radio commercial deployment. The base station deployment in South Korea will be followed by additional countries globally in 2019 and beyond, the companies said in a news release.

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