Shares of Texas Instruments (Nasdaq: TXN) rose nearly 2 percent in early trading after the No. 1 maker of chips for cell phones and cars was selected to join the Nasdaq 100 Index (Nasdaq: NDX).
TI shares rose 52 cents to $32.70 before the market opened Monday. They closed up a penny at $32.19. The Dallas-based semiconductor giant's market value is nearly $37 billion.
Being selected to join an index usually boosts a stock because many fund managers are either required to buy index members or to buy the indices themselves.
The listing may also be a reward for TI's shift from its long-term home on the New York Stock Exchange to Nasdaq. Both exchanges battle fiercely for new listings.
Facebook, for example, decided to list its shares on Nasdaq rather than the NYSE once its initial public offering plan is declared effective.
Nasdaq will substitute TI for First Solar (Nasdaq: FSLR) when the switch takes effect next Monday.
So far this year, shares of TI have risen 11 percent, compared with 18 percent for the Nasdaq 100.
David Zielenziger is a veteran editor and journalist who has written for newspapers including the Baltimore Sun, Asian Wall Street Journal and EETimes, as well as for...