Sector Snap: Chip stocks advance

American Depositary Shares of Switzerland-based STMicroelectronics rose 63 cents, or 5.9 percent, to $11.27. The stock has traded in the 52-week range of $9.88 and $19.58.

The company posted a smaller second-quarter loss late Tuesday, and, excluding items, its adjusted earnings were above Wall Street's expectations.

"We were impressed with the revenue, operating, and earnings results given the continued negative impact of a stronger Euro and the uncertain economic environment," wrote Stifel Nicolaus analyst Cody Acree in a note to investors. He rates the stock "Buy."

Elsewhere, Texas Instruments, which hit a multiyear low Tuesday after posting second-quarter earnings below Wall Street's estimates, climbed 37 cents to $24.72. And memory products maker SanDisk Corp., which sank to a five-year-low Tuesday after posting a surprise second-quarter loss, rose 68 cents, or 5 percent, to $14.30.

Broadcom Corp. was among the few chip stocks heading lower Wednesday. The company, which designs chips for networking equipment and cell phones, posted second-quarter earnings above Wall Street's expectations. But fears that its profit margins will slip in the third quarter weighed on the stock.

The company's shares fell $1.77, or 6.4 percent, to $25.87. The stock has traded between $16.38 and $43.07 in the past year.

"To some degree, we believe BRCM is being overly conservative in its outlook as it has guided to lower gross margin and higher spending and consistently exceeded expectations for the last few quarters," Acree wrote in a note to investors. He rates Broadcom "Buy."

The Philadelphia Semiconductor Sector index climbed 5.82, or 1.7 percent, to 351.27 as the broader market also advanced.