TECH STOCKS: Chips Lead Tech Rally As Intel, AMD Rise
By Benjamin Pimentel
The tech sector posted gains Monday, powered by semiconductor shares led by
Intel Corp. and Advanced Micro Devices Inc.
Intel (INTC) was up 2%, while AMD (AMD) gained 3.8%, as the chip sector got
upbeat news, including an International Data Corp. report that PC microprocessor
shipments jumped 23% in the third quarter.
The Philadelphia Semiconductor Index (SOX) was off to a strong start, gaining
2.6% in the opening minutes of trading. The Nasdaq Composite Index (SOX) was up
1.4% at 2,142, while the Morgan Stanley High Tech 35 Index (MSH) added 1.9%.
"Most meaningful about the third quarter of 2009 is that, since PC processor
shipments overall just slightly exceeded shipments in the third quarter of 2008
-- which was itself a record quarter at the time -- we know that the processor
market is recovering," IDC analyst Shane Rau said in a statement.
In a Monday note, Wells Fargo analyst David Wong also cited "very positive
data on semiconductors and electronic end market fundamentals over the last few
weeks," prompting him to raise his 2010 chip growth projections to 15%-25%, from
10%-20%.
Computer makers also advanced, led by Apple Inc. (AAPL) and Dell Inc. (DELL).
Other major tech players also were higher, including Google Inc. (GOOG),
Research In Motion (RIMM) and Oracle Corp. (ORCL).
Meanwhile, shares of Cisco Systems Inc. (CSCO) dipped after the networking-
gear maker announced that it plans to offer "senior notes under an automatic
shelf registration statement on file with the Securities and Exchange
Commission."
(END) Dow Jones Newswires
11-09-091115ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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