Sector Snap: Semiconductors

Shares of several microchip companies inched higher Tuesday even as the broader market declined over worries about consumer confidence and high oil prices.

The Philadelphia Semiconductor Sector index rose 3.87 points, or 1 percent, to 382.59.

Shares of both LTX Corp. and Credence Systems Corp. inched higher. The chip testing equipment makers said on Monday they plan to combine their businesses, with LTX controlling management and the board and Credence shareholders owning a slight majority. Shares of LTX tumbled more than 16 percent on Monday, and Credence climbed.

Stifel Nicolaus analyst Patrick Ho said in a note Monday after listening to a conference call on the deal that while he still has reservations about it, the "positives could outweigh negatives."

Citi Investment Research analyst Timothy M. Arcuri upgraded Credence to "Hold" from "Sell" late Monday night, saying "this deal takes shareholders out at a better price than where the stock was headed."

Shares of LTX rose 8 cents, or 3.4 percent, to $2.43, having traded between $2.25 and $5.88 in the past year. Shares of Credence jumped 6 cents, or 4.7 percent, to $1.33, having traded between $1 and $3.99 in the past 52 weeks.

Elsewhere, shares of Micron Technology Inc. added 37 cents, or 5.3 percent, to $7.38. The stock has traded in the 52-week range of $5.42 and $14.20.

Cowen analyst Daniel Berenbaum started coverage of the memory-chip maker with a "Neutral" rating, saying the "worst may be behind us, but the future is uncertain."

Berenbaum doesn't expect a "sustained upward move" for the stock over the short term, but he said, "the memory market is not structurally broken, and there are some potentially positive catalysts on the horizon."