Sector Snap: Semiconductors edge lower

The Philadelphia Semiconductor Sector index slid 0.71 points to 365.16 in late morning trading as the tech-heavy Nasdaq fluctuated.

Shares of Texas Instruments, a leading maker of chips for cell phones, slid 52 cents to $28.30. Last month, the company narrowed its sales and earnings forecast, but remained within range of analysts' expectations.

Lehman Brothers analyst Tim Luke wrote in a note to investors that, in general, a moderating handset market may already be largely reflected in estimates and the company's share price. He expects the quarter to be "broadly in line" with last month's forecast, which was for earnings of 43 cents to 47 cents per share. Analysts, on average, expect a profit of 46 cents per share.

Shares of rival Broadcom Corp. fell $1.09, or 3.8 percent, to $27.70. In the past 52 weeks, the stock has traded between $16.38 and $43.07.

Broadcom is set to report its earnings on Tuesday. Shaw Wu, an analyst with American Technology Research, anticipates a "strong quarter" from the company, but added that a potential slower growth in the company's Ethernet business may be a concern going forward.

Wireless chip maker Qualcomm Inc., meanwhile, added a penny to $45.20.