Chipmakers Lead Nasdaq Higher
U.S. indices recovered from their earlier declines to trade in the green Thursday morning. The Nasdaq reached a new all-time intraday high shortly after the opening bell and continued to trade up 0.3% by the afternoon. The Dow and S&P both hovered around their baseline.
Shares of wireless chipmaker Qualcomm (QCOM) - Get Report were up nearly 2% following reports that rival Broadcom (BRCM) offered to purchase the company for $105 billion, or $130 billion including debt. The $70 per share offer represents a 33% upside of the stocks 30-day trading average.
Fellow chipmaker Advanced Micro Devices (AMD) - Get Report was climbing more than 5% after the company announced a joint project with long-time rival Intel as the two companies look to stave off competition from Nvidia (NVDA) - Get Report . The two companies announced that they are working on a laptop chip that combines Intel's processing with AMD's graphics card. The two companies insisted that their joint venture would not cannibalize their other stand-alone chip efforts.
California is set to roll out a set of new taxes as recreational pot becomes legal in the state starting next year. Currently, a small bag of weed costs about $35, enough to roll five or six small joints. However, smokers could see that price balloon as much as 70% as California looks to tap into a market that some estimate could reach $1 billion in sales soon, the Los Angeles Times reported.
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