Market Overview

Semiconductor Stocks Go Nuts Amid Consolidation Speculation

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Semiconductor stocks largely moved higher Wednesday following news that Broadcom Corporation (NASDAQ: BRCM) would be acquired by Avago Technologies Ltd (NASDAQ: AVGO), according to The Wall Street Journal.

Broadcom Corporation closed at $57.25, soaring 22.02 percent amid the news while Avago closed up 8.55 percent at $142.52.

The Market Vectors Semiconductor ETF (NYSE: SMH) also moved higher Wednesday and closed at $59.47, up 3.73 percent.

The WSJ report noted that semiconductor sector had been “consolidating at a fast clip this year” and cited how NXP Semiconductors NV (NASDAQ: NXPI) agreed to buy Freescale Semiconductor Ltd (NYSE: FSL) in an $11.8 billion deal while Intel Corporation (NASDAQ: INTC) was reportedly preparing to acquire Altera Corporation (NASDAQ: ALTR), as was initially speculated in March.

Related Link: Broadcom Soars 20% Amid News Of Deal With Avago Technologies

Intel Corporation appeared to also benefit from the consolidation speculation and closed at $33.76, up 1.98 percent.

Mellanox Technologies, Ltd. (NASDAQ: MLNX) was an outlier with a decline on the day, closing at $49.98, down 0.70 percent.

Xilinx, Inc. (NASDAQ: XLNX) closed at $47.68, up 2.43 percent, while Lattice Semiconductor (NASDAQ: LSCC) traded at $6.26, a gain of 3.47 percent.

Atmel Corporation (NASDAQ: ATML) also rose, closing at $8.85, up 2.07 percent and Maxim Integrated Products Inc. (NASDAQ: MXIM) closed at $34.50, up 1.58 percent.

Analog Devices, Inc. (NASDAQ: ADI) closed at $68.40, up 2.93 percent while Intersil Corp (NASDAQ: ISIL) was another big winner for the day, closing at $13.48, a gain of 5.02 percent.

Semtech Corporation (NASDAQ: SMTC) and Cirrus Logic, Inc. (NASDAQ: CRUS) both closed more than 5 percent higher while Linear Technology Corporation (NASDAQ: LLTC) traded at $47.81, up 2.59 percent.

 

Related Articles (BRCM + AVGO)

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