Semiconductor stocks edged lower in midday trading Tuesday following quarterly reports from companies including Atheros Communications Inc., Ultra Clean Holdings Inc. and Vishay Intertechnology Inc.
The chip sector, as measured by the Philadelphia Semiconductor Index, fell 0.45 points, or 0.27 percent.
Oppenheimer analyst Allan Mishan cuts his price target on Atheros Communications Inc. to $33 from $35 after the chip maker reported its first-quarter results.
He cut his 2008 profit estimate to $1.30 per share from $1.35 per share and his 2009 profit estimate to $1.50 per share from $1.55.
Mishan cited a "cautious" economic view. However, he said Atheros remains a favorite investment for potential growth in uncertain economic times.
Shares of Santa Clara, Calif.-based Atheros fell 29 cents to $26.24 in afternoon trading.
Ultra Clean Holdings Inc. fell after the microchip manufacturing equipment supplier said its first-quarter profit plunged 63.5 percent on a decline in sales.
Chief Executive Clarence Grange said the company has streamlined its operations to stay profitable while the downturn in the microchip equipment industry continues.
Microchip equipment companies have suffered declining profits as microchip companies pull back on capital spending because of economic uncertainty.
Shares of Menlo Park, Calif.-based Ultra Clean fell 72 cents, or 6.3 percent, to $10.77 in afternoon trading. They have traded in the last year between $8.96 and $16.69.
Chip maker Vishay Intertechnology Inc., which makes chips for the automative, communications and other industries, also fell after it said it swung to a first-quarter loss.
The Malvern, Pa.-based company had an impairment charge of $32.3 million on the sale of its automotive modules and subsystems business unit, which makes electronic components for the car industry.
Its shares fell 30 cents, or 3.1 percent, to $9.35 in afternoon trading. They have traded in the last 12 months between $8.43 and $18.22.
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