Sector Snap: Chips Trip
Thursday October 5, 2:07 pm ET
Semiconductor Stocks Mostly Slip, With Diodes and Nvidia Among Biggest Losers
NEW YORK (AP) -- Semiconductor stocks slipped in Thursday afternoon trading, with graphics chips maker Nvidia Corp. and discrete semiconductor supplier Diodes Inc. leading the pack into the red.
A handful of chip makers -- including Texas Instruments Inc. and STMicroelectronics NV fell modestly without any catalysts.
ADVERTISEMENT
Texas Instruments shares fell 11 cents to $28.95 on the New York Stock Exchange, while STMicroelectronics shares were down 22 cents at $17.19 on the New York Stock Exchange.
Nvidia shares, which have traded between $15.26 and $31.88 over the last year, were down 70 cents, or 2.2 percent, at $30.38 on the Nasdaq, after an analyst dismissed rumors that the company could be an acquisition target for chip maker Intel Corp.
"We think it's wrong to assume that Nvidia must be a potential target for Intel just because AMD (Advanced Micro Devices Inc.) is buying ATI Technologies," said Merrill Lynch analyst Joe Osha, in a note to clients. "What AMD wanted out of the deal was a workable platform strategy. Intel has that already."
Chip maker Advanced Micro Devices Inc. announced plans in July to acquire Nvidia competitor ATI Technologies Inc. in a deal valued at $5.4 billion.
Intel shares were down 4 cents at $20.78 on the Nasdaq, while AMD shares were up 3 cents at $25.06 on the New York Stock Exchange. ATI shares were down 6 cents at $21.54 on the Nasdaq.
Elsewhere in the sector, shares of Diodes Inc., maker of semiconductor devices used in computer memory boards and central processing units, sank after the company announced a $200 million convertible note offering. Shares of Diodes fell $3.32, or 7.3 percent, to $42.03 on the Nasdaq.
The Philadelphia Semiconductor Sector Index slipped 2.31 points to 454.49.
