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| Wednesday, October 11, 2006 |
Analyst Sees "Exceptionally Strong" 4Q for AMD, Rambus Up on Toshiba Licensing
Semiconductor stocks were on the march Wednesday afternoon, with memory chip interface designer Rambus Inc. among the most actively traded of the bunch, thanks to a licensing agreement with Toshiba.
Both Advanced Micro Devices Inc. and Intel Corp. advanced -- AMD shares rose $1.25, or 5.4 percent, to $24.39 on the New York Stock Exchange, and Intel a more modest 31 cents to $21.20 on the Nasdaq.
ThinkEquity analyst Eric Ross upgraded AMD to "Buy" from "Sell" and lifted his price target to $30 from $20.
"While we still believe AMD may face difficult margins in the third quarter, we have heard from our sources in Asia and Europe that fourth quarter should be exceptionally strong," Ross wrote in a note to clients.
Another mover, PMC-Sierra, saw shares jump 3.9 percent, although the stock was trading at less than half its average volume at $6.15 on the Nasdaq.
"On a percentage basis, it looks like a big move, but all the semi stocks are moving up," said Stifel Nicolaus & Co. analyst Cody Acree. "To some extent, the sector may be bouncing back after a relatively large pullback in the space, or it may be nothing more than investors moving money into technology and out of commodities or energy."
Elsewhere in the sector Broadcom Corp. shares were up 15 cents at $28.95, after an International Trade Commission judge found that Qualcomm Inc. infringed upon one out of three of its disputed patents.
"We believe the companies will eventually reach a settlement in their patent dispute, but an injunction against Qualcomm would likely serve as a catalyst for further negotiations," wrote Deutsche Bank Securities analyst Ross Seymore, in a note to clients.
Qualcomm shares rose 68 cents to $37.75 on the Nasdaq.
Some of the most dramatic gains came for Rambus Inc., which said Wednesday it signed a licensing agreement with Toshiba Corp. Shares added $1.94, or 11.2 percent, at $19.22 on the Nasdaq. |
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