Shares of chip companies on Thursday recovered from much of the previous day's decline as Silicon Laboratories Inc. spiked on an upgrade and an analyst began coverage of ON Semiconductor Corp. at "Buy."
In afternoon trading, the Philadelphia Semiconductor Sector Index rose 7.87, or 2.1 percent, to 392.34. Seventeen of the 18 stocks on the index traded higher.
The biggest gainer among chip makers was networking and communications chip maker Silicon Laboratories, which added $3.31, or 9.9 percent, to $36.80. The stock has traded in a 52-week range of $25.39 to $45.15.
Silicon Labs was upgraded by Friedman Billings Ramsey analyst Craig Berger to "Outperform" from "Market Perform." In a note to clients, he wrote that after checking with distributors serving the networking and communications sector, the market appears robust.
Following the note, shares of communications chip maker Broadcom Corp. rose $1.94, or 7.7 percent, to $27.24. Marvell Technology Group, which makes some communications chips, rose 94 cents, or 5.7 percent, to $17.29.
Elsewhere, shares of ON Semiconductor Corp. rose 41 cents, or 4.5 percent, to $9.50. In beginning his coverage of the company, Stifel Nicolaus analyst W. Blake Fischer said recent initiatives _ such as restructuring its balance sheet and expanding its manufacturing capabilities _ are poised to pay off. He predicted better profitability and higher cash flow for the company.
Other notable movers among chip companies were Texas Instruments Inc. _ which rose $1.21, or 4.1 percent, to $30.59 _ and LSI Corp., which climbed 39 cents, or 5.7 percent, to $7.19.
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