FPGAM&Axilinx

Xilinx Chases Hyperscale. Who’s Chasing Xilinx?

xilinx better logoEmboldened, perhaps, by their major design win at Baidu last month (details here), Xilinx this week is demonstrating its reconfigurable acceleration for cloud scale applications at SC16. According to their press release, they will “highlight how Xilinx® All Programmable technologies are ideally suited to handle computationally intensive data center workloads including machine learning, data analytics, video transcoding, storage and networking – enabling the world’s largest cloud service providers to develop and deploy reconfigurable acceleration platforms at cloud scale”

Microsoft’s publication of a technical paper last month may also have added fuel to the fire. Entitled “A Cloud-Scale Acceleration Architecture”, they revealed their extensive use of Xilinx’s competitor Altera (now Intel) FPGA offering.
With 50% market share compared to Altera’s 37%- and a $4.4 Billion TAM at stake, Xilinx has a lot at stake, not least because of a perceived slow-down on the Altera side following their acquisition by Intel. Xilinx has another issue to contend with- stagnant revenues that refuse to break the $2.4 Billion level – and a share price performance to match. Actually, this hasn’t been such a bad year from a share price perspective. Bolstered by a vigorous buy-back program and takeover rumours, the stock is up almost 40% from it’s 52 week low. So who might be interested in acquiring Xilinx? For a discussion on this and any topics related to Xilinx, please get in touch at william.keating@semiconalpha.com