Xilinx (Nasdaq:XLNX) announces earnings very soon. As management explains the latest scenario ponder this bear case scenario. Intel has agreed to manufacture PLDs for Altera at the next-gen 14-nanometer manufacturing process. Altera will take the product cycle lead over Xilinx in a couple of years. Altera and Xilinx generate excellent operating margins. Altera is more efficient than Xilinx.Altera’s margins are a couple of percentage points higher than Xilinx’s.
George Gutowski writes from a caveat emptor perspective.