Shares of local chipmakers rallied Monday after analysts upgraded a handful of companies.
Shares of Irvine-based Microsemi Corp., a maker of chips for aerospace and defense companies, jumped after a Lehman Brothers Inc. analyst upgraded the stock.
Microsemi’s shares were up 4% in midday New York trading on a market value of about $2 billion.
Irvine’s Broadcom Corp., a maker of communications chips, rose nearly 9% on a market value of about $10 billion.
Broadcom wasn’t upgraded but rose along with shares of other chipmakers in a sector rally.
Lehman Brothers said the chip sector has “one of the most attractive risk/reward profiles in technology and was expected to outperform for the rest of 2008,” according to a Reuters report.
Along with Microsemi, Lehman Brothers upgraded Analog Devices Inc., Fairchild Semiconductor International Inc. and Intersil Corp. to “overweight” from “equal weight.”
Makers of analog chips are set to see a boost in demand, according the report.
“Under-shipment in four out the last five periods makes the analog suppliers well positioned for accelerating growth as end demand stabilizes,” the brokerage said.
The Philadelphia Semiconductor Index, a benchmark for chip stocks, was up 4%.
