This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chips Charge on Upgrades

Chip stocks rallied Thursday, thanks to bullish sentiment on the industry and a couple of Wall Street upgrades on high-profile semiconductor names.

Nvidia (NVDA) garnered an upgrade from Lehman Brothers a day after its annual analyst briefing, sending the company's stock up 7.6%, or $3.02, to $42.88 to reach a new 52-week high.

And Advanced Micro Devices' (MCHP) shares advanced nearly 7% to $14.56 when Stifel Nicolaus analyst Cody Acree upgraded the company to a short-term trading buy, after 18 months of keeping a neutral rating on the company.

The upgrades added juice throughout the chip sector, helping to propel The Philadelphia Stock Exchange Semiconductor Sector index nearly 3% to a new 52-week high of 511.52.

Thursday's gains marked the second semiconductor rally in the past week, as investors appear to sense an improving business environment for chipmakers.

"You're getting to the end of the June quarter, and I think investors, as they are checking in with these companies, for the most part are hearing that things are good," says Dan Niles of Neuberger Berman Technology Management.

And after three years of underperformance, the semiconductor sector is poised for a pickup, says Niles, whose firm is bullish on semiconductor stocks.

The SOX is trading at roughly the same level as it did in January 2004. In the same period, the Nasdaq has gained 30%, and the S&P 500 has risen 36.5%.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs