Replace Nvidia with Xilinx

Article by Simon Erickson (TMFInnovator):

This Stock Could Become the Next NVIDIA

Several trends developing in the tech world don’t appear to favor the GPU maker. But my top pick in the space appears well poised to be a huge beneficiary.

The tech world is continually undergoing extensive changes, with dominant incumbents ceding share to more-specialized niche players.

This dynamic recently played out for NVIDIA (NASDAQ:NVDA), which became one of tech’s best-performing stocks over the past few years after its graphics processing units (GPUs) offered a more efficient way for companies of all types to do their computing.

But even well-loved NVIDIA is now under attack. The stock fell more than 50% in the final three months of 2018, with weak fourth-quarter guidance or slowing demand in China being possible reasons for Wall Street analysts tapering down their expectations.

I agree that NVIDIA’s troubles will continue, but for a different reason. One of NVIDIA’s most important growth markets is the cloud computing data center. Yet I believe field programmable gate arrays (FPGAs) will win out over GPUs in an industry that is quickly becoming a must-win battleground for NVIDIA. If that happens, the company’s best growth days may now be behind it.

But what could take its place?

I believe Xilinx (NASDAQ:XLNX) might be the stock to own in the tech space today

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