Shares of semiconductor stocks declined with the broader market Friday, but graphic chip maker Nvidia Corp.'s strong earnings helped offset losses in the sector.
The chip sector, as measured by the Philadelphia Semiconductor Index, fell 0.83 points, or less than 1 percent, to 398.76 in afternoon trading.
Shares in Santa Clara, Calif.-based Nvidia jumped after it posted a 34 percent jump in first-quarter profit.
Canaccord Adams analyst Bobby Burleson upgraded Nvidia to "Buy" from "Sell" and said the stock appears undervalued given recent improvement in the personal computer supply chain and recent stability at Nvidia's manufacturing partners.
Stifel Nicolaus & Co. analyst W. Blake Fischer raised his rating to "Buy" from "Sell," noting that market share, margin growth and new products should improve through the year.
Nvidia shares rose 90 cents, or 4.1 percent, to $22.85 in afternoon trading. They have traded in the last year between $17.31 and $39.67.
Texas Instruments Inc. rose on largely positive reaction to its annual analyst meeting, during which the company laid out its plans for sales growth.
Cowen and Co. analyst John Barton said after the first day of the two-day meeting that the company's analog business continues to be the best growth opportunity.
"The high performance analog segment has been the most significant growth driver for the company and we would expect this to remain the case in the future," he said.
Shares of the Dallas-based company rose 12 cents to $29.90 in afternoon trading.
Communications chip maker Emcore Corp. inched upward after Jefferies & Co. analyst John Lau said that the company is showing strong traction in its terrestrial solar business.
He also welcomed the company's fiscal second-quarter sales of $56.3 million, reported Wednesday, which was above his "conservative" estimate of $55.2 million.
Shares of Albuquerque, N.M.-based Emcore rose 2 cents to $6.75 in afternoon trading. They have traded in the last year between $4.32 and $15.90.
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