By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Semiconductor stocks mostly rose
Tuesday as the sector reacted to Texas Instruments Inc.'s deal to
buy National Semiconductor Corp. for $6.5 billion.
Announced late Monday, TI's (TXN) offer, which has been approved
by the boards of both companies, values National Semi (NSM) at $25
a share. Investors sent National Semi's shares up more than 71%, to
$24.06 in early trading.
The deal marks a major consolidation in analog chips, where TI
and National Semi both have major market shares.
Among other chip stocks, big gains came from Intersil Corp.
(ISIL), up $1.22, or 10%, to $13.35; Semtech Corp. (SMTC), higher
by $1.50, or 6.2%, to $25.86, and On Semiconductor Corp. (ONNN), up
48 cents, or 5%, to $10.16.
The Philadelphia Semiconductor Index (SOX) was up by 1.8%, while
the Nasdaq Composite Index (RIXF) fell 3.8 points to 2,785.
Also Tuesday, shares of Apple Inc. (AAPL) fell $3, or about 1%,
to $338.10. The Nasdaq OMX said it was rebalancing the Nasdaq-100
Index (NDX) and would lower Apple's weighting to about 12% from
more than 20% -- reflecting the big increase in Apple's share price
over the last two years -- effective with the open of the markets
on May 2.
Among other tech stocks, gains came from Dell Inc. (DELL) as
well as Dow Jones Industrial Average components Microsoft Corp.
(MSFT) and Hewlett-Packard Co. (HPQ)