Intel

(INTC) - Get Report

rose 3.8% in early afternoon after

Goldman Sachs

analyst Terry Ragsdale assumed coverage of the chipmaking giant with a market outperformer rating.

Ragsdale also initiated coverage of

Texas Instruments

(TXN) - Get Report

by adding it to the buy list. Texas Instruments fell 1.3%.

Chip stocks were generally strong, despite warnings from

Vitesse

(VTSS)

and

TranSwitch

(TXCC)

and estimate cuts for several stocks in the sector by

Merrill Lynch

. The

Semiconductor Index

(SOX)

was up 2%.