Tech Winners & Losers: Nortel Networks

The company's shares were up more than 13% on a report that it is working on a new broadband technology.
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Updated from 1:55 p.m. EDT with new stock prices

Tech stocks were down Wednesday as the shares of many semiconductor companies tumbled after an industry association cut its chip sales forecast for the year.

The Semiconductor Industry Association, in its 2008 forecast for chip sales, said it expects chip sales to grow at 4.3% to $266.6 billion, down from its November forecast of 7.7%. The SIA said increased competition especially in the memory chips market is likely to drive down prices further.

As a result,

AMD

(AMD) - Get Report

was down 48 cents, or 6.5%, to $6.95.

Rival

Intel

(INTC) - Get Report

lost 87 cents, or 3.8%, to $21.81.

SanDisk

(SNDK)

was off $1.00, or 3.9%, to $24.50.

Micron Technology

(MU) - Get Report

fell 45 cents, or 5.8%, to $7.35.

Shares of

Nortel Networks

(NT)

gained $1.10, or 13.6%, to $9.21 after

The Wall Street Journal

reported that the company is focusing its research and development effort on a new broadband technology called LTE (Long-term evolution) and away from WiMax.

Memory chips maker

Qimonda

(QI)

added 24 cents, or 5.9%, to $4.30 after the company said it has completed a deal to form a technology partnership to jointly develop memory chips with

Elphida Memory

.

Video games publisher

Activision

(ATVI) - Get Report

was down 60 cents, or 1.8%, to $33.20 even though an analyst at Wedbush Morgan upgraded the stock to strong buy from buy and raised his price target to $45 from $35 ahead of the company's merger with

Vivendi Games

. Activision shareholders will vote on the transaction on July 8.