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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Stress who wrote (38442)	12/3/1998 4:25:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

The fantastic action in the chip sector today is good news for CPQ. I borrowed this from the CRUS thread posted by Will Tham. _________________________________________________________________ Dow Jones Newswires -- December 3, 1998 Chip Stocks Gain On ADI Report, Firming DRAM Prices By Christopher Grimes NEW YORK (Dow Jones)--Semiconductor stocks charged ahead Thursday, as investors gained confidence from Analog Devices Inc.'s (ADI) positive earnings report and conference call Wednesday. Investors also appeared to be reacting to good vibes from PC makers like Hewlett-Packard Co. (HWP) and Compaq Computer Corp. (CPQ), which are enjoying a strong Christmas buying season, according to analysts' reports. And there was yet another report that memory-chip prices continue to rise. Analog Devices itself raced up for the second straight day, gaining 3 3/4, or nearly 16%, to 27 7/8; the stock closed up 15% Wednesday. The company's earnings beat Wall Street expectations by a penny, and analysts said its conference call Wednesday afternoon was generally positive. ADI officials said the worst of the industry-wide slump seems to be over, and that a slow recovery seems to underway. Chip stocks "are breaking out," said Gus Richard, an analyst at Hambrecht & Quist. "Stocks are making new highs; investor psychology is very positive right now. I think ADI was a catalyst." The Philadelphia Semiconductor Sector Index was recently up 18.3, or 5.6%, to 345.08, even as the Dow Jones Industrial Average fell by almost 40 points. Analog Devices said good sales of its digital signal processors, or DSPs, helped to bring overall revenues higher in its fiscal fourth quarter. That seemed to help shares of top DSP maker Texas Instruments Inc. (TXN), too. Its shares rose 2 1/4, or 3%, to 81. Investors also appeared encouraged by a Credit Suisse First Boston report Thursday, which said prices for dynamic random access memory chips, or DRAMs, were continuing to rise. The firm's commentary came as it increased its investment opinion on DRAM maker Micron Technology Inc. to a strong buy from buy. Micron shares rose 2 15/16, or 6.4%, to 48 11/16. Other stocks rising early Thursday included Linear Technology Corp. (LLTC), up 8% to 78 19/32; National Semiconductor Corp. (NSM), up 10% to 16 7/8; Advanced Micro Devices Inc. (AMD), up 5% to 30 1/16; and Cirrus Logic Inc. (CRUS), up 12% to 12 3/4. Copyright © 1998 Dow Jones & Company, Inc. All Rights Reserved.