Updated from 2:31 p.m. EDT with new stock prices
Tech stocks rallied Wednesday after chipmaker
rebutted fears of a slowdown in tech spending with a strong outlook for the current quarter.
Shares of Intel were up $1.22, or 5.8%, to $22.13 following the company's first-quarter earnings report and upbeat earnings outlook. Intel
of $1.4 billion, or 25 cents a share, vs. $1.63 billion, or 28 cents a share, a year ago. Analysts were looking for EPS of 25 cents. Revenue for the quarter was $9.67 billion slightly above analysts' expectations of $9.63 billion.
Intel said gross margin in the current quarter is expected to be 56%, plus or minus a couple of points, and stayed firm on its previous guidance of 57% margins for the full year. Sales in the current quarter will range from $9 billion to $9.6 billion, the company said, and will be in-line with Street consensus of $9.25 billion in revenue.
Advanced Micro Devices
also added 29 cents, or 5%, to $6.07. AMD will report its first-quarter results on Thursday.
rose $3.30, or 2.8%, to $120.47 ahead of the company's first-quarter earnings report as investors and analysts expect
a solid performance
from the company. Analysts are expecting top-line growth of 7.6% to $23.71 billion and a 20% jump in EPS to $1.45 in the quarter.
was up $5.32, or 3.6%, to $153.70. The company's two partners in U.K. cut their prices for the iPhone by almost 100 pounds (about $198 )
as part of a promotion
. The price cut also strengthens the belief of some analysts that Apple is making way to introduce the much-awaited 3G version of the iPhone in June.
gained $1.59, or 5%, to $33.69 as the company gets ready to post its first-quarter results Thursday before the opening bell. Analysts
expect the company
to report a profit of 57 cents a share on revenue of $19.84 billion.
shed $1.11, or 5.5%, to $19.06 after the company's guidance for the current quarter
of Street estimates. For the fourth quarter, Seagate said it expects to report revenue of $2.85 billion to $3 billion, and earnings, excluding charges, in the range of 41 cents to 45 cents a share. That's lower than analysts' expectations of 57 cents in EPS on revenue of $3.10 billion. An analyst at Caris downgraded the stock to average from above average.
Semiconductor and storage systems maker
fell 33 cents, or 6.2%, to $5.04 after an analyst at Merrill Lynch downgraded the stock to neutral from buy. Seagate, which accounts for 20% of LSI's sales, missed revenue estimates in its earnings report Tuesday, a sign that could point to a negative wind at LSI, said the analyst.