Wednesday's Tech Winners & Losers

Updated from 1:30 p.m. EDT

Tech stocks rallied Wednesday after a two-day selloff in the wider market, as bargain hunters scooped up shares of Apple(AAPL Quote) and Seagate(STX Quote).

Apple jumped 5.7% amid speculation it was about to unveil a new line of iPods. The company has invited analysts and the media to an event on Sept. 5, which a Goldman Sachs note suggested will be to introduce the new iPod line. Shares closed up $7.26 to $134.08.

Seagate, the largest disk drive maker in the U.S., gained 3.8% after upping its fiscal first-quarter guidance. Excluding one-time charges, the company expects earnings of between 62 cents and 66 cents a share, well above its original guidance of 40 cents to 44 cents. Analysts polled by Thomson Financial had been expecting 46 cents a share. Seagate stock closed up 93 cents to $25.39.

Other tech stocks were also on the rise. GPS system maker Garmin(GRMN Quote) gained 4.8% to close at $100.96, and Blackberry maker Research In Motion(RIMM Quote) closed up 6% to $81.82.

Apple, Garmin and Research In Motion were boosting the Nasdaq 100, which gained more than 55 points to 1954.85.

Semtech(SMTC Quote) soared 10.5% after beating Wall Street's expectations after Tuesday's bell. The chipmaker reported non-GAAP net income of $12.5 million, or 18 cents per diluted share, compared with $11.8 million, or 16 cents per diluted share, in the second quarter of fiscal 2007. Analysts polled by Thomson Financial expected earning of 14 cents a share. The stock jumped $1.67 to close at $17.52.

Not all was rosy in the sector.

SourceForge(LNUX Quote), which operates a network of media and ecommerce Web sites, lost 24.1% after JMP Securities downgraded it to market underperform from market perform. Shares lost 87 cents to close at $2.74.

Chinese online game maker The9 Ltd.(NCTY Quote) sank 9.5% after reporting earnings that disappointed investors after the bell Tuesday. The company reported net income of $6.6 million, or 25 cents per American Depository Share. Factoring out interest, taxes, depreciation and amortization, the company reported earnings of $14.3 million, or 54 cents per American Depository Share. Analysts polled by Thomson Financial expected earnings of 32 cents per American Depository Share. The9 stock lost $3.83 to $36.52.