Rambus wasn't alone today....
AP
Semiconductor Stocks Slip
Thursday June 8, 3:56 pm ET
Chip Stocks Slip; Investors Fear Price War Between Intel and AMD
NEW YORK (AP) -- Although the semiconductor industry is expected to benefit handsomely from cell phone sales in the second half of the year, chips stocks fell sharply lower Thursday as investors seemed more concerned about a potential price war between two key microprocessor makers.
The carnage was fairly dramatic across the sector through mid-afternoon. Graphics chip maker Nvidia Corp. and ATI Technologies Inc. shares were pounded especially hard; Nvidia shares were down $1, or 4.5 percent, to $20.82 on the Nasdaq, and ATI shares were down 85 cents, or 5.5 percent, at $14.73 on the Nasdaq.
But just before the closing bell, both stocks had mounted a recovery. Nvidia shares were down 48 cents, or 2.2 percent, at $21.34, while ATI shares were 17 cents lower at $15.41.
On Wednesday JMP Securities analyst Krishna Shankar dismissed notions that Intel or AMD could acquire either ATI or Nvidia.
"We believe that Intel or AMD is unlikely to merge with graphics chip vendors ATI Technologies and Nvidia for several reasons, including Intel's preoccupation with its own company-wide restructuring efforts and AMD's need to have a vendor-neutral stance on graphics co-processors for strategic partnerships," Shankar wrote in a note.
Advanced Micro Devices Inc. took one of the biggest hits of the bunch, too, dropping nearly 5 percent, or $1.37, to $26.63 in morning trading on the New York Stock Exchange. Later in the session, shares recouped some of earlier losses and were down only 86 cents, or 3.1 percent, to $27.14.
AMD suffered at the hands of a few analysts who predicted the company's profits may be nipped by a price war with rival chip maker Intel Corp.
Intel shares set a new 52-week low of $17.09 in morning trading, and in late afternoon trading were down a relatively modest 29 cents at $17.10. In Wednesday's trading, the stock set a new three-year low of $17.33.
The market was kinder to flash memory semiconductor stocks -- but not much kinder. Shares of SanDisk Corp. were down 4.5 percent earlier in the session, but regained some ground by mid-afternoon, and were most recently trading down 49 cents $52.60. Micron Technology shares were down 34 cents, or 2.2 percent, at $15.48 on the New York Stock Exchange.
Even wireless chip stocks were down. Texas Instruments Inc., which is scheduled to deliver its mid-quarter update after market close, was down 11 cents at $30.61 on the New York Stock Exchange. Texas Instruments supplies chips used in cell phones, which the Semiconductor Industry Association said yesterday was a driving force behind the group's boosted sales outlook for the year.
Freescale Semiconductor Inc. shares slipped 18 cents to $28.58 in afternoon trading on the Big Board, but recovered and were up 7 cents from their opening price at $28.83 late in the session.
Qualcomm Inc. shares slipped nearly 5 percent earlier in the session, but by late afternoon they were down 80 cents at $44.68 on the Nasdaq, despite ThinkEquity analyst Mike Burton's comments that the company's fundamentals are strong and that it has a "an enviable position with its large intellectual property portfolio."
National Semiconductor Corp., which is scheduled to release fourth-quarter results after the bell, saw shares fall 17 cents to $23.98 on the NYSE.
Semiconductor-producing equipment makers such ASM International NV and Kulicke & Soffa Industries Inc. also got the shaft. Shares of Kulicke & Soffa were down 77 cents, or 9.2 percent, at $7.53 on the Nasdaq, while ASM International shares were down 35 cents, or 2.2 percent, at $15.56 on the Nasdaq.
The PHLX Semiconductor index was down 2.01 points, less than half a percent, at 445.54 in late afternoon trading, but the index is down roughly 3.2 percent since Monday's close of 460.18.
