Sector Snap: Qualcomm, most other chip stocks rise

Qualcomm shares rose $2.67, or 5.8 percent, to $48.98. In the past year, the stock has traded between $35.17 and $49.50.

The company said Thursday it is benefiting from rising demand for next-generation cell phones and other devices, as well as from revenue from upgrades to 3G, or third-generation wireless networks.

Qualcomm increased its adjusted per-share earnings estimate for the quarter, saying it now expects 54 cents or 55 cents per share, and said forecast pro forma revenue above the high end of its previous estimate of $2.5 billion to $2.7 billion.

Qualcomm also increased its fiscal 2008 profit expectations.

Meanwhile, shares of Intel Corp., which is the world's largest computer chip maker, rose 67 cents, or 3.1 percent, to $22.48, while shares of rival Advanced Micro Devices Inc. rose 37 cents, or 5.3 percent, to $7.33.

Both stocks regained much of the ground they lost in trading on Wednesday after the Semiconductor Industry Association, which is an industry trade group, lowered its chip sales growth estimate for the year.

Elsewhere in the sector, shares of graphics chip maker Nvidia Corp. rose 65 cents, or 3.1 percent, to $21.90.

Kaufman Bros. analyst Suji De Silva reiterated his "Buy" rating and $33 price target for the stock in a client note.

The analyst predicted upcoming products from AMD will challenge Nvidia in the near term.