Sector Snap: Semiconductor shares rise

The chip sector, as measured by the Philadelphia Semiconductor Index, rose 3.23 points or 0.81 percent to 401.73 in afternoon trading.

American Technology Research analyst Doug Freedman said in an interview that the market is impressed with AMD's recent performance ahead of the release of its Puma mobile chips next month.

He said the troubled chip maker is finally shipping its Barcelona chips, which were hit by glitches and delays in 2007 and early this year.

AMD shares rose 35 cents or 5.1 percent to $7.28 in afternoon trading. They have traded in the last year between $5.31 and $16.19.

Chip foundry Chartered Semiconductor Manufacturing Ltd. rose after posting better first-quarter results than Wall Street expected.

However, Citi Investment Research analyst Horng Han Low warned that Chartered needs higher production volume to improve growth and recommended selling the stock on its current strength.

Chartered Semiconductor shares jumped 70 cents or 11.25 percent to $6.96 in afternoon trading. They have traded between $4.70 and $9.16 in the last year.

Sigma Designs Inc. rose after Lazard Capital markets analyst Daniel Amir said he believes the company's first quarter is on track and that it is doing well in sales of chips used for Blu-ray high definition TV and Internet television, a technology that allows users to watch Internet content on their TV sets.

He maintained his "Buy" rating but said the company's second-quarter outlook could be less impressive.