Tech Winners & Losers: Yahoo!

Investors get emboldened as Yahoo!'s CEO backpedals.
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Tech stocks were up modestly Tuesday, led in part by

Yahoo!

(YHOO)

, as some analysts and investors believe the company is still in play and open to bids from other firms including

Microsoft

(MSFT) - Get Report

.

Yahoo! rose $1.55, or 6.4%, to $25.94 as CEO Jerry Yang

seemed to backpedal

on Yahoo!'s rejection of Microsoft's $31-a-share offer.

In a letter made public Saturday, Microsoft said the company was willing to go as high as $33 a share, but Yahoo!'s board rejected it, holding out instead for $37 a share. Yahoo! is also facing

possible lawsuits

from some shareholders angry about the failed deal.

Microsoft's stock was up 43 cents, or 1.5%, to $29.51.

Memory chip maker

Qimonda

(QI)

was up 65 cents, or 17.9%, to $4.30 following news that

LDK Solar

(LDK)

has signed a five-year contract to supply multicrystalline solar wafers to Qimonda. Qimonda said Monday it has partnered with German company

Centrosolar

to enter the market for solar cells.

Advanced Micro Devices

(AMD) - Get Report

gained 49 cents, or 7.5%, to $7.02

on speculation

that the company will soon reveal its strategy to restructure its manufacturing efforts in a bid to lower costs.

Shares of

Qwest Communications

(Q)

dipped 33 cents, or 6.2%, to $5.03 after the company

posted light sales

and profit for the first quarter, saying it lost more local customers than expected. Qwest reported net income of $157 million, or 9 cents a share, compared with $240 million, or 12 cents a share, a year ago. Revenue fell 1.5% to $3.4 billion during the quarter. Analysts were expecting profit of 10 cents a share on sales of $3.41 billion.

Metro PCS

(PCS)

lost 97 cents, or 4.8%, to $19.05 after the company

missed

analysts' EPS expectations for the first quarter by a penny. Metro PCS posted EPS of 13 cents. Revenue rose 23.3% to $662 million during the quarter. The company reported quarterly net subscriber additions of 452,000, ending the quarter with approximately 4.4 million subscribers.

Virgin Mobile

(VM)

shed 34 cents, or 8.8%, to $3.42 after the company reported

lower profit

and revenue in the first quarter on weak subscriber growth and forecast net customer losses in the current quarter.