RE: AMD buying Xilinx for $35Bn3 Nov 2020 17:05
2. Data Center Efforts Will Be a Priority...
Though Xilinx historically hasn’t received a large percentage of its revenue from data center end-markets, the percentage has been rising in recent quarters, thanks to organic investments, acquisitions and engagements with internet/cloud giants (the proverbial hyperscalers) such as Microsoft (MSFT) - Get Report. During its September quarter, Xilinx’s data center revenue rose 30% annually and accounted for 14% of total revenue.
Among other things, Xilinx’s FPGAs are used within servers to perform AI inference (the running of trained AI models against real-world content), power SmartNICs (networking cards that can offload various network, security, virtualization and/or storage processing functions from CPUs) and storage and video acceleration.
During a conference call held on Tuesday morning, AMD CEO Lisa Su and Xilinx CEO Victor Peng both talked up the potential to create server platforms that encompass Xilinx FPGAs and AMD’s server CPUs and GPUs. Su particularly highlighted Xilinx’s efforts in the SmartNIC market. This is a field where Nvidia is also investing aggressively, following its recent acquisition of Mellanox Technologies, and where firms such as Intel (INTC) - Get Report and Marvell (MRVL) - Get Report are also present.
Should the Nvidia-Arm and AMD-Xilinx deals both close, Nvidia and AMD will both have server CPU, GPU and SmartNIC offerings to market, as will Intel.
https://www.thestreet.com/investing/amd-blockbuster-deal-to-acquire-xilinx
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