Updated from 1:44 p.m. EST with new stock prices

Tech stocks traded mostly flat Friday as Wall Street remained in neutral gear after the release of the latest jobless report.

Chipmaker

National Semiconductor

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(NSM)

rose 4.3% after the company reported strong sales of cell-phone chips in its second-quarter, leading to earnings above Wall Street expectations.

National Semi said consumer demand in the current quarter remains strong and revenue in the company's cell-phone chip business is up 18% sequentially and 30% year over year. But it said the sales outlook for the next quarter is disappointing. National Semi was up $1.02 to $24.53.

Video-games publisher

Activision

(ATVI) - Get Report

rose 2.5% after a Wall Street firm upgraded the stock to a buy. Activision's recent merger with Vivendi Games fills an important gap in the company's business model, said a Piper Jaffray analyst. He suggested investors should hold out on the tender offer for their shares since the stock has greater potential for appreciation. Activision shares were up 64 cents to $26.79.

Electronic design software company

Synopsys

(SNPS) - Get Report

soared 9.3% after the company topped Wall Street's estimates for the

fourth quarter and offered robust guidance for 2008 despite fears of a slowdown in the tech sector.

Revenue at the company rose 11% to $315.2 million, and was higher than analysts' expectations of $308.2 million. Synopsys reported earnings of 40 cents a share, excluding charges -- 4 cents ahead of analysts' estimates. The stock was up $2.32 to $27.38.

Verizon

(VZ) - Get Report

gained 88 cents, or 2%, to $45.30 after a U.S. federal appeals court said it will not review a challenge by competitor

Sprint Nextel

(S) - Get Report

and other companies over a Federal Communications Commission action that lifted some regulations on Verizon's broadband business. Sprint Nextel was down 15 cents, or 1%, to $15.64.

Palm

( PALM) fell 12.9% after the company warned that it

will miss analysts' expectations for the second quarter. The company said delays in the certification and shipping of a key product would lead to a revenue shortfall in the quarter.

Palm expects revenue in the range of $345 million to $350 million for the second quarter, compared with earlier guidance of $370 million to $380 million offered on Oct. 1. Analysts were expecting revenue of $376.3 million.

Excluding charges, Palm said it now expects a loss of 8 cents to 10 cents a share, compared to analyst expectations of earnings of 4 cents a share. Palm shares were off 85 cents to $5.74.

Shares of IT security company

McAfee

( MFE) were down 84 cents, or 2.1%, to $38.94 after an analyst from Friedman, Billings, Ramsey downgraded McAfee, which is fast approaching the firm's target price of $43, to market perform from outperform. He said McAfee's recent run limits the upside potential in the stock.