Recaps today's good news ... but note the common misperception that AMAT is a chipmaker, not a chip-maker-maker.
- Mitch
cbs.marketwatch.com
Chip sector spurs rally on profit hopes
By Martin Cej, CBS.MarketWatch.com
Last Update: 5:37 PM ET Aug 14, 2000 NewsWatch
Latest headlines
NEW YORK (CBS.MW) -- Semiconductor shares rallied Monday to lead a broad advance by tech stocks as a flurry of positive analyst comments hoisted Micron Technology and underpinned optimism that rising demand will keep swelling profits in the sector.
Intel, Applied Materials and Advanced Micro Devices joined Micron's advance to lift the Philadelphia Semiconductor Index for a second day.
The Philly Semiconductor Index ($SOX: news, msgs) rallied 7.7 percent while the Nasdaq Composite Index ($COMPQ: news, msgs) roused itself from an earlier torpor to gain 60.22 points, or 1.6 percent, to 3849.69 while the Morgan Stanley High Technology Index ($MSH: news, msgs) rose 2.8 percent and the Pacific Stock Exchange Index ($PSE: news, msgs) gained 1.9 percent.
"I like the semiconductor shares," said Subodh Kumar, chief portfolio strategist at CIBC World Markets. "The communications revolution is for real and demand for semiconductors will continue to grow."
"I'm telling clients that this is a buying opportunity," Kumar said.
Micron Technology (MU: news, msgs) rose to lead semiconductor shares after a report today from Salomon Smith Barney compounded a pair of positive analyst reports issued Friday. The stock rose 4 7/8 to 80 1/2.
Salomon Smith Barney analyst Jonathan Joseph said Micron's management has indicated that there were early signs of a pickup gathering pace. Joseph reiterated his "buy" recommendation on the stock as well as a price target of $125.
Among the analyst action seen Friday, the stock was rated "buy" in new coverage at PaineWebber while UBS Warburg set a price target of $125.
Applied Materials shares (AMAT: news, msgs) rose 5 5/8 to 74 13/16, Advanced Micro Devices (AMD: news, msgs) gained 5 3/8 to 63 1/8 and Intel (INTC: news, msgs) rose 3 1/8 to 66 15/16. Intel said that it will buy privately-held communications equipment maker Ziatech for $240 million in cash.
"Intel and Applied Materials are our core semiconductor holdings," Kumar offered. |
