Chip Stocks Lifted by Novellus Comments
Friday March 1, 11:16 am Eastern Time
NEW YORK (Reuters) - Shares of semiconductor stocks pushed sharply higher on Friday following an optimistic business update by Novellus Systems Inc. (NasdaqNM:NVLS - news), a major producer of chip-making equipment.
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The Philadelphia Stock Exchange semiconductor index (^SOXX - news) rose 30.50 points, or 6 percent, to 541.33. The index is up more than 50 percent from September lows, boosted by fresh hopes that the worst-ever downturn in the chip business may be coming to an end.
``There are signs of the downturn going away,'' Novellus Chairman and Chief Executive Office Richard Hill said in a conference call with investors on Thursday. ``We see that February has followed January with continued signs of recovery.''
Novellus stock jumped $3.33, or nearly 8 percent, to $45.92.
Hill also said the company expects to report first quarter revenue in the range of $150 million to $160 million, better than the company had originally forecast, with a loss of 9 cents a share.
Chip equipment makers were up virtually across the board, with industry leader Applied Materials Inc. (NasdaqNM:AMAT - news) up 5.5 percent. Shares of Intel Corp. (NasdaqNM:INTC - news), the world's largest chip maker, rose $1.43, or 5 percent, to $29.98. |
