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Semiconductors Mixed After Prudential Comments on Chips

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Specialty chipmaker

Xilinx

(XLNX)

got an early boost from

Prudential Securities

, which offered an optimistic outlook for semiconductor stocks in the first half of 2001, but couldn't remain in the black at midday.

In a report, Prudential analyst Hans Mosesmann mentioned Xilinx and

Texas Instruments

(TXN)

as his "favorite large cap names." He said he expects the two to "outperform in 2001 given their dominant positions and sustainable competitive advantages in their target markets."

Shares of Xilinx, which is based in San Jose, Calif., were lately down $1.06 cents, or 2.2%, to $47.19 in trading on the

Nasdaq

, after hitting an intraday high of $50.38. Texas Instruments fell 44 cents, or 0.9%, to $49.56 on the Big Board.

Additionally, Mosesmann listed

LSI Logic

(LSI)

,

Atmel

(ATML)

,

Microchip Technology

(MCHP)

,

Pericom Semiconductor

(PSEM)

and

STMicroelectronics

(STM)

as "traditional cycle plays" with "broad end market exposure that offer minimal downside risk."

However, Mosesmann remains "cautious on PC plays," echoing his firm's

lowered estimates on PC stocks this morning.

Shares of the semiconductor makers were mixed in midday trading. LSI lately fell 5.1% to $17.64 on the

New York Stock Exchange

, while Atmel lost 13 cents, or 1%, to $12.25. STMicroelectronics fell 75 cents, or 1.7%, to $43.56. Microchip Tech gained 69 cents, or 3.1%, to $23 in Nasdaq trading, and Pericom was higher by 75 cents, or 4.4%, to $17.88.

Sector heavyweight

Intel

(INTC)

lost $2.13, or 6.5%, to $30.44. The

Philadelphia Stock Exchange Semiconductor Index

recently fell 1.7%, to 593.5.