Tech Winners & Losers: Advanced Micro Devices
Tech stocks were trading higher on Tuesday along with the rest of the major market indices as the Federal Reserve prepared to deliberate its interest-rate policy.
The Nasdaq rose 31 points, or 2%, to 1537 by mid-afternoon.
Shares of Advanced Micro Devices (AMD) fell on Tuesday after the chipmaker announced that it had completed the sale of its unit that makes chips for digital TVs to Broadcom (BRCM) for a reduced price.
In August, the two companies valued the sale at $192.8 million in cash. It has since been reduced to $141.5 million in cash after Broadcom said that revenue from its DTV business will be lower than expected in the fourth quarter.AMD's stock slipped 8.2% to $2.70. Shares of Priceline (PCLN) were down 4.7% to $46.96 after Goldman Sachs lowered its price target to $90 from $100 based on continuing weakness in the travel market and the strength of the U.S. dollar overseas. Atheros (ATHR) shares were up 7.3% to $17.31 after the company provided a financial forecast on Monday that offered more hope than some of its chip competitors. The company said that its new line of products will help protect it from some of the pain induced by the macro-economy. Shares of EarthLink (ELNK) were up 6.9% to $6.83 after the company raised its full-year earnings outlook for the second time this year. The Internet service provider bumped its guidance due to better-than-expected subscriber additions as well as cost savings and customer churn.
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