Sector Snap: Chip makers fall with Nasdaq

NEW YORK (AP) _ Shares of chip makers retreated along with the tech-heavy Nasdaq Tuesday, a day after Texas Instruments Inc. narrowed its earnings and revenue guidance for the second quarter.

The Philadelphia Semiconductor Sector Index fell 7.19 to 394.90 in midday trading, while the Nasdaq 100 edged down 3.73 to 1,975.98. The broader Nasdaq Composite fell 5.42 to 2,454.04.

Late Monday, Texas Instruments revised its second-quarter earnings estimate to a range of 43 cents to 47 cents per share, from a previous forecast of 42 cents to 48 cents per share. Analysts polled by Thomson Financial expect income of 46 cents per share.

"We believe the outlook is generally in line with Street expectations, with strength being seen across the board in analog and wireless showing some areas of weakness on the low end," Stifel Nicolaus analyst Cody G. Acree wrote in a note to investors Tuesday. He maintained a "Buy" rating.

Texas Instruments shares fell 61 cents, or 2 percent, to $30.72.

Meanwhile, shares of Nvidia Corp. lost 97 cents, or 4.1 percent, to $22.72 after the graphics chip maker was downgraded to "Sell" from "Neutral" by FTN Midwest.

Elsewhere, Intel Corp. stock wavered after a ThinkPanmure analyst began coverage of the No. 1 microprocessor maker at "Buy." Its shares added 2 cents to $22.78.

Shares of Conexant Systems Inc., a fabless semiconductor company which serves the communications sector, rose 5 cents, or 9 percent, to 60 cents.A Jefferies analyst upgraded the company to "Buy" from "Hold."

Other notable decliners in the chip sector included Broadcom Corp., which lost $1.04, or 3.8 percent, to $26.66, and flash memory chip maker SanDisk Corp., which fell 66 cents, or 2.5 percent, to $25.86.