Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of analog chip maker Intersil (Nasdaq: ISIL) jumped 10% on Tuesday as Texas Instruments' (NYSE: TXN) move to purchase National Semiconductor (NYSE: NSM) sent positive vibes throughout the sector.

So what: The deal gives TI an even bigger lead in the analog chip market and naturally triggered speculation on Wall Street about other likely buyout candidates in the space. Along with Intersil, analog chip specialists ON Semiconductor (Nasdaq: ONNN) and Fairchild Semi (NYSE: FCX) are also up nicely on the expectation of even more industry consolidation going forward.

Now what: Intersil might be one takeover target that's worth taking a shot on. Even with today's double-digit pop, the shares are still down more than 10% since late December and trade at a forward P/E of 15. Fools know never to buy a stock based on buyout buzz alone, but when you consider TI's willingness to offer a lofty 78% premium for National Semi, Intersil seems like a reasonably priced gamble.

Interested in more info on Intersil? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Texas Instruments. Try any of our Foolish newsletter services free for 30 days.

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