Semiconductor stocks rose in midday trading as the broader market advanced Thursday, after an analyst recommended investors continue to buy chip stocks.
Friedman Billings Ramsey analyst Craig Berger cited strong demand from personal computer makers.
Berger said his checks suggest global personal computer demand has increased 5.5 percent since similar checks in April.
The improving market had positive implications for chip makers Marvell Technology Group Ltd. and LSI Corp., which respectively have 65 percent and 35 percent of their sales in the personal computer market, he added.
LSI shares rose 12 cents to $6.94, while Marvell shares rose 71 cents, or 5.1 percent, to $14.74.
Solid strength in Intel's notebook and server segments could produce better second-quarter and full-year results than he had expected, Luke said.
Banc of America Securities analyst Sumit Dhanda was upbeat on Intel, too. In a note to clients, he wrote Atom, Intel's new chip for low end desktop and notebook computers, could be the biggest growth driver for Intel since its highly successful Centrino chip launch five years ago.
Separately, Lehman Brothers analyst Tim Luke said he was encouraged by Intel's order trends and new product execution.
Intel shares rose 38 cents to $24.22.
Elsewhere, AMD shares rose 19 cents, or 2.6 percent, to $7.35, while Nvidia shares climbed $1.05, or 4.8 percent, to $23.12.
The Philadelphia Semiconductor Index rose 1.74 points to 413.03 in midday trading.
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