Semiconductor stocks fell with the broader market Friday, with Advanced Micro Devices Inc. and Taiwan Semiconductor Manufacturing Co. posting the steepest declines.
The chip sector, as measured by the Philadelphia Semiconductor Index, fell 4.74 points or 1.17 percent to 399.74 by midday.
Taiwan Semiconductor shares fell 34 cents, or 3 percent, to $10.86 in midday trading. They have traded in the last year between $7.56 and $11.89.
AMD shares fell 24 cents, or 3.4 percent, to $6.83. They have traded in the last year between $5.31 and $16.19.
Elsewhere, Intel Corp. shares lost 57 cents, or 2.4 percent, to $23.31, Qualcomm Inc. shares added $1.09, or 2.4 percent, to $46.96.
Lehman Brothers analyst Tim Luke said he was upbeat on Intel and Qualcomm ahead of a Lehman Brothers wireless conference in New York next week.
He predicted a positive tone from Intel CEO Paul Otellini as the company is seeing strong trends in its notebook and server sectors.
Luke said he was encouraged by Intel's "crisp execution" on new products due for release in 2008.
Meanwhile, major analog chip maker Texas Instruments Inc. will likely see a transition period in its wireless market in 2008 and the first half of 2009, Luke said.
Sales growth is likely to return in the second half of 2009 and he remained cautious in the near term.
However, he said that the company may be tracking in line with its conservative guidance for its current second quarter.
Shares of Dallas-based Texas Instruments fell 26 cents to $31.57.
Cree Inc., which makes lighting chips for computer monitors and other products, is facing a fall in prices because of oversupply and competition, Lazard Capital Markets analyst Daniel Amir warned.
Amir warned that manufacturers are moving away from Cree products when installing backlighting for Apple and other notebook computer makers.
Cree has seen a fall in prices because of an "aggressive" price cut by Taiwanese competitor Epistar, Amir said.
Shares of Durham, N.C.-based Cree rose 3 cents to $23.29 in midday trading.
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