Sector Snap: Semiconductors

While the chip sector, as measured by the Philadelphia Semiconductor Index, fell 4 points or 1.1 percent to 347.33, the Nasdaq Composite Index fell 1.4 percent as investors anxiously await economic data.

Oppenheimer & Co. analyst Rick Schafer said Friday that Intel Corp.'s first-quarter outlook is conservative given economic uncertainty, but believed it was a higher-quality choice relative to competitor Advanced Micro Devices Inc.

He was speaking after meeting with Intel management at the Oppenheimer Semiconductor Summit in Vale, Colorado this week.

Schafer said the one of the meeting was generally positive, though economic uncertainty remains.

Intel shares fell 74 cents or 3.6 percent to $19.57 in afternoon trading. They have traded in the last year between $18.05 and $27.99.

Schafer also liked Monolithic Power Systems Inc., saying that it appears to be tracking in-line with just a month to go in the quarter.

Monolithic remained one of his top picks, primarily on a combination "best-in-class" share gains and margin stability.

Its shares fell 28 cents to $15.43.

Fellow Oppenheimer analyst Allan Mishan said that that he was impressed with Atheros Communications Inc. after meeting with management.