NEW YORK ( TheStreet) -- A company like Xilinx ( XLNX) can be an enigma to investors. It isn't an easy study, but neither is its chief rival Altera ( ALTR).
Both companies' shares have been under pressure lately, and both are selling at almost identical PE ratios. From a market cap perspective Xilinx is larger at $11.8 billion versus Altera at $10.4 billion. The two compete in similar ways, but the leader is also challenging to determine.
No doubt Xilinx is the world's leading provider of All Programmable FPGAs, SoCs and 3D ICs. These industry-leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. It helps to be tech savvy to understand what this all means, but when it's set against the backdrop of the expanding mobile device market internationally then it begins to shine brighter.
Let's take the company at its word that, "Only Xilinx has the portfolio to enable design teams to develop All Programmable electronic systems." This apparently expands their system value advantages, addresses the industry's "programmable imperative" by reducing exploding design costs, and dramatically increases flexibility and lowers risk in a rapidly changing market environment.