Technology Sector Update for 02/21/2018: INTC,QCOM,AVGO,NXPI,ANY,GRMN

Top Tech Stocks

MSFT -0.20%

AAPL +0.54%

IBM -0.08%

CSCO -0.59%

GOOG +1.81%

Technology stocks still were trending higher this afternoon, with shares of tech companies in the S&P 500 adding more than 0.3% in value today while the Philadelphia semiconductor index was posting a 0.2% decline.

Among technology stocks moving on news:

+ Intel ( INTC ) was narrowly higher in late Wednesday trading, hanging on to a sliver of a nearly 2% rise to an intra-day high of $47.06 a share that followed reports the chipmaker is planning to to spend $5 billion by 2020 to expand production at its Kiryat Gat plant in southern Israel. Intel has invested around $17 billion in Israel since 1974, including a $6 billion upgrade in 2014 that resulted in 5% reduction of its corporate taxes over the next 10 years. It will likely receive an additional reduction worth up to 10% of the money spent on upcoming expansion, a spokeswoman for the Israeli economy ministry told Reuters. A spokesman for Intel in Israel declined to comment for the Reuters report. Earlier Wednesday, analysts at DA Davidson raised their price target for Intel shares by $6 to $55 apiece and also reiterated their Buy/Add investment rating for the company's stock.

In other sector news:

+ Sphere 3D ( ANY ) raced over 20% higher on Wednesday, reaching a session high of $2.95 a share, after agreeing to sell its data protection and archive business to an entity created and operated by Sphere 3D chief executive Eric Kelly for $45 million, subject to a working capital adjustment. In prepared remarks, Sphere 3D president Peter Tassioupoulos said the transaction is consistent with the company's recent strategic review and will also eliminate all of its existing debt, allowing it to better focus on its converged and hyperconverged product offerings. The deal is expected to close before mid-year.

- Qualcomm ( QCOM ) was falling during Wednesday trading, dropping over 2% to a session low of $62.65 a share after Broadcom ( AVGO ) reduced its buyout price for the specialty chipmaker after Qualcomm raised its acquisition offer for NXP Semiconductors ( NXPI ) on Tuesday. Broadcom said it is now prepared to pay $79 for each Qualcomm share, consisting of $57 in cash and $22 in Broadcom stock after the target company increased its offer for NXP Semi to $127.50 per share, although it also said its offer would automatically rise by $3 in cash per Qualcomm share if Qualcomm is unable to complete the proposed acquisition. Other terms of Broadcom's bid were unchanged, including an $8 billion regulatory reverse termination fee and 6% per annum ticking fee accruing beginning after the 12-month anniversary of the companies' merger agreement.

- Garmin (GRMN) retreated Wednesday despite the GPS-technology company reporting adjusted Q4 net income of $0.79 per share, up from $0.73 per share during the same period last year and exceeding the Capital IQ consensus forecast by $0.03 per share. Revenue rose to $888.5 million from $860.8 million during the year-ago quarter, also beating the $872.7 million Street call. The company is also projecting adjusted FYH18 net income of around $3.05 per share on about $3.2 billion in revenue.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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