Semiconductor Stocks Surge on Recovery Hopes

Strategic Insights -

The semiconductor industry experienced a significant boost on Tuesday, driven by a positive recovery forecast from analyst James Barlage of Lehman Brothers. The industry's leading stocks, including Intel, Applied Materials, and Micron Technology, saw substantial gains, with Intel gaining $2.93 3/4 to $130.43 3/4. Other computer stocks, such as Sun Microsystems and Dell Computer, also rallied, while network security company Network Associates faced concerns about a potential earnings restatement. General Motors and Lucent Technologies were among the notable gainers, with Lucent's 2-for-1 stock split contributing to its surge.

Key Takeaways:

  • Intel (INTC) led semiconductor shares higher, gaining $2.93 3/4 to $130.43 3/4, on a multi-year bull market forecast by Lehman Brothers analyst James Barlage.
  • Applied Materials (AMAT) rose $2.18 3/4 to $67.93 3/4, while LSI Logic (LSI) increased $3.50 to $36.
  • Micron Technology (MU) jumped $2.25 to $53.75, driven by the industry's recovery from its worst recession.
  • Dell Computer (DELL) surged $2.75 to $46.81 1/4, ahead of its management meeting with analysts and institutional investors on Thursday.
  • Network Associates (NETA) fell $7.50 to $21.93 3/4 amid concerns about potential earnings restatement after an accounting review by the Securities and Exchange Commission.
  • General Motors (GM) rose $3.50 to $91.06 1/4, driven by optimism about car sales.
  • Lucent Technologies (LU) jumped $5.68 3/4 to $64.62 1/2 after a 2-for-1 stock split, with investors "piling into a few choice companies" and "loving" Lucent for its consistent performance.
  • Atlantic Bank & Trust (ATLB) rose $6.25 to $17.37 1/2, as its online, real-time banking site is expected to be fully operational by late summer.

Statistics:

  • Intel (INTC) closed at $130.43 3/4, a gain of $2.93 3/4 from the previous day.
  • Applied Materials (AMAT) rose $2.18 3/4 to $67.93 3/4.
  • Micron Technology (MU) gained $2.25 to $53.75.
  • Dell Computer (DELL) jumped $2.75 to $46.81 1/4.
  • Network Associates (NETA) fell $7.50 to $21.93 3/4.
  • General Motors (GM) surged $3.50 to $91.06 1/4.
  • Lucent Technologies (LU) rose $5.68 3/4 to $64.62 1/2.
  • Atlantic Bank & Trust (ATLB) increased $6.25 to $17.37 1/2.
  • Yahoo! (YHOO) traded 339 shares on average, indicating individual investors behind the move.

Sources:

  • Lehman Brothers analyst James Barlage said: "A multi-year bull market is under way in semiconductor stocks."
  • Scott Vergin, a fund manager at the Lutheran Brotherhood, was quoted as saying: "People are in love with Lucent because they haven't disappointed yet."
  • Bloomberg news
  • The Wall Street Journal