The chip sector fell heavier than the wider technology market Monday, pushed down in part by Wall Street hesitation ahead of Texas Instruments Inc.'s annual analyst meeting.
Goldman Sachs analyst James Covello said he continues to have a favorable view of Texas Instruments' increasing focus on the analog-chip market.
However, he kept his "Hold" rating, given "continued choppy cyclical fundamentals" that are likely to continue in the second quarter.
Shares of Dallas-based Texas Instruments, which begins its annual shareholder meeting Thursday, fell 66 cents, or 2.2 percent, to $29.04 in midday trading. They have traded in the past 12 months between $27.51 and $39.63.
The chip sector, as measured by the Philadelphia Semiconductor Index, fell 5.05 points, or 1.3 percent, in midday trading.
Shares of Applied Materials Inc., the world's largest supplier of equipment for making microchips, fell on expected weak April results.
Stifel Nicolaus & Co. analyst Patrick Ho said in a note to investors that he expects weak equipment orders for April, offset to a smaller degree by continued strength in solar power and flat panel displays. However, he said Applied was one of the best companies in the equipment sector.
Applied Materials shares fell 40 cents, or 2 percent, to $19.31 in midday trading. They have traded in the past year between $16.13 and $23.
Shares of memory-chip makers largely held up against the negative trend after Lazard Capital analyst Daniel Amir said prices for NAND memory chips should increase 10 to 15 percent in May.
NAND chips, which are found in iPods, digital cameras and other portable devices, suffered a price slump in 2007 because of oversupply.
In a note to investors, Amir maintained his "Buy" rating on major NAND maker SanDisk Corp. Its shares rose 97 cents, or 3.3 percent, to $30.19 in midday trading. They have traded in the past year between $19.54 and $59.75.
Terms & Conditions
RSS Headlines
Fool UK