Sector Snap: Chip makers waver after weak AMD results
Friday April 18, 1:15 pm ET
Shares of semiconductor stocks waver after weak AMD results, worrying equipment sales data
NEW YORK (AP) -- Semiconductor stocks wavered Friday, missing the technology sector boost provided by strong Google Inc. results as Advanced Micro Devices Inc. reported a weak quarter.
Furthermore, an industry trade group published discouraging data on sales of semiconductor manufacturing equipment.
The chip sector, as measured by the Philadelphia Semiconductor Index, slid 2.74 points to 368.28 in midday trading, while the Nasdaq Composite Index rose 2.3 percent.
Oppenheimer & Co. analyst Rick Schafer said in an investor note that AMD's results point to continued market share los for the chip maker. He advocated a cautious stance on AMD, noting "strong momentum from a revitalized Intel."
AMD shares slipped 4 cents to $6.15, while shares of leading chip maker Intel rose 43 cents to $22.54.
Elsewhere, shares of Emcore Corp. lost 2 cents to $6.97 following the chip maker's analyst day.
Oppenheimer & Co. analyst Sam Dubinsky said in an interview that the stock is now in "show me mode" and that it's time for the company to delivery on numbers, particular in its solar sector.
Meanwhile, trade association Semiconductor Equipment and Materials International reported that in the three months ended in March, orders for North American chip manufacturing equipment fell 18 percent year over year amid economic uncertainty.
Shares of the world's largest supplier of chip manufacturing equipment, Applied Materials Inc., edged up 15 cents to $19.32. KLA-Tencor Corp. added 29 cents to $42.84 and Novellus Systems Inc. rose 36 cents to $22.49.
