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'Fast Money' Recap: Will Big Merger Ignite Tech?

NEW YORK ( TheStreet) -- The after-markets were abuzz Monday with the announcement by Texas Instruments (TXN - Get Report) of a $6.5 billion merger with National Semiconductor (NSM - Get Report).

For the day, the Dow Jones Industrial Average added 23.31, or 0.46%, to 12,400.03. The S&P 500 gained 0.46, or 0.03%, to 1,332.87. The Nasdaq fell 0.41, or 0.01%, to 2,789.19.

Guy Adami said on CNBC's "Fast Money" show that the deal may be coming at the right time with National Semi coming off a disappointing quarter.

He said it was time to look at other possible moves in the space, including Linear Tech (LLTC - Get Report) and Maxim Integrated (MXIM - Get Report).

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour said the merger was a case perhaps of the industry leader buying the better player and using its sales force to push out the better product.

Karen Finerman said she doubts whether anyone else would come in at this point. She said she wasn't going to touch National Semi, adding there is tremendous downside risk and little in the way of upside.

Joe Terranova called it a "home run" for National Semi, with Texas Instruments overpaying for a stock that was down 10% last year.

Brian Kelly said the merger doesn't change his opinion of the chip sector, which he is still shorting. He didn't like the fact that Texas Instrument will be increasing its exposure on the industrial side while moving away from the exposure to fast-growing smartphone space.

Craig Berger, an analyst for FBR Capital Markets, said National Semi received a "full, fair price." He said he liked the synergies of the merger because it allows Texas Instruments to use its more sophisticated factories to manufacture National Semi's chips.

Berger said there are a lot of inexpensive chip stocks in the space. Terranova said he didn't believe the merger would ignite the tech sector. He said chip sales are in the later innings of the cycle, adding he was moving away from Nvidia (NVDA) and Marvell (MRVL).

CNBC tech correspondent Jon Fortt said the merger will increase Texas Instrument's market share to 17%. He said it also makes sense because the company can take advantage of its advanced processing technology to manufacture National Semi's chips.
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CMI $114.44 -3.51%
GM $30.59 -2.11%
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NSM $11.56 5.09%


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