Tags: Chipmaker | Shares | Rally | Report | Capital | Spending

Chipmaker Shares Rally on Report Capital Spending to Expand

Monday, 13 Sep 2010 03:27 PM

Computer-chip makers had the biggest gain of any industry in the Standard & Poor’s 500 Index after research firm Gartner Inc. said semiconductor capital equipment spending will more than double this year from 2009.

Micron Technology Inc., the Boise, Idaho-based chipmaker, rose 8 percent to $7.03 at 2:10 p.m. in Nasdaq Stock Market composite trading. Advanced Micro Devices Inc. of Sunnyvale, California, gained 8.3 percent to $6.30, the largest gain in the S&P 500. Nvidia Corp. advanced 5.8 percent to $10.65, while Intel Corp., the world’s largest chipmaker, climbed 2.5 percent to $18.42.

An index for the industry group rose 2.8 percent, the most among 24 groups in the U.S. stock benchmark. Worldwide semiconductor capital equipment spending is projected to rise to about $36.9 billion in 2010, from $16.6 billion last year, Gartner said today in an e-mailed statement.

“2010 will likely be the strongest year ever for the semiconductor equipment industry,” said Klaus Rinnen, managing vice president at Gartner, in the statement. “Capital expenditure is above 95 percent due to strong spending by the foundry and logic segments, along with a technology upgrade for the memory manufacturers.”

Companies should prepare for a “softer” 2011, because of a slowing economy, according to the report. Semiconductor capital equipment spending will grow 4.9 percent next year, Gartner said.

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Computer-chip makers had the biggest gain of any industry in the Standard Poor s 500 Index after research firm Gartner Inc. said semiconductor capital equipment spending will more than double this year from 2009.Micron Technology Inc., the Boise, Idaho-based chipmaker,...
Chipmaker,Shares,Rally,Report,Capital,Spending
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2010-27-13
Monday, 13 Sep 2010 03:27 PM
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