Xilinx (NASDAQ:XLNX) Battling for Market Share with Aggressive Pricing

Weak demand is forcing Xilinx to cut prices in an attempt to get more market share as it erodes in the weak economic climate.

Auriga said, "XLNX has recently become much more aggressive on pricing, particularly at communications customers, to stem market share erosion."

The one positive note, as with peers of Xilinx, is edge routers are selling well.

That has caused Auriga to actually raised their fourth quarter 2011, full year 2011 and full year 2012 estimates on Xilinx from $0.52, $2.25, and $2.23 to to $0.54, $2.29, and $2.28.

Auriga reiterates a "Hold" rating on Xilinx, which closed Tuesday at 31.77, up $0.08, or 0.25 percent. Auriga raised their price target on Xilinx from $29 to $35.

Short selling on Xilinx has reached a 25-month high as earnings approaches.