NEW YORK (TheStreet) -- Shares of Atmel Corp. (ATML) are higher by 2.05% to $9.95 in pre-market trading on Tuesday morning, as the semiconductor maker's stock continues a rise it began on Monday following speculation the company is exploring a sale.
Atmel is said to be looking into its strategic options, which includes the possibility of a sale, sources told Reuters.
Smaller semiconductor companies have become attractive acquisition targets for larger companies in the industry as they look to expand their abilities with chips for cars, watches, and other devices that interact with one another, Reuters added.
The company is said to be working with the investment bank Qatalyst Partners as it explores its options.
Atmel's CEO Steve Laub announced in May that he will be retiring in August. Reuters sources suggest that the CEO's departure is a contributing factor to the company's decision to research its alternatives.
Insight from TheStreet Research Team:
Atmel Corp. is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
The company makes microcontrollers used in electronics. The shares added 6% to recent gains this week on speculation of continued consolidation in the semiconductor sector. We believe that management can continue to expand margins in the coming quarters. In the meantime, we'll qualify for the next quarterly dividend of $0.06 per share (1.7% yield) at the close of trading on June 10.