For Chips, Nibbles Not Bites

Is the bloodletting that has pervaded the semiconductor sector finally coming to an end?

Chip stocks got a modest but long-awaited lift Wednesday after Goldman Sachs upgraded several semiconductor companies, including Intel(INTC Quote).

Although Goldman's note suggested that the chip sector's two-month slide may be near the bottom, many investors continue to view the sector with apprehension -- particularly in light of the broader market's tumultuous state.

"I think the trading environment isn't lending itself very well to any tech shares right now," says Michael Church, an analyst at Church Capital Management. "So, to me it seems prudent to play wait-and-see instead of trying to catch the falling knife. Let them prove themselves." ...