US investment bank Goldman Sachs has upgraded the US semiconductor sector to "overweight".
It said the area's fundamentals are likely to strengthen in the fourth quarter of this year and added several of the sector's shares to its "recommended list".
Among them was the world's top computer-chip maker, Intel, which jumped to $30.70 on the Instinet electronic brokerage system from Friday's close of $29.95. Analog Devices was also added to Goldman's recommended list, and its shares rose to $49.50 on Instinet from $47.45 at Friday's close.
Intel employs 3,400 people in Ireland; Analog employs over 1,400 people at its Limerick facility.
Goldman also upgraded several communications-chip makers, citing a bottoming out in the sector's businesses and stock prices. It added Broadcom, wireless technology company Qualcomm and Conexant Systems to its recommended list.
Broadcom jumped to $44.50 on Instinet from Friday's close of $42.55, and Qualcomm saw its shares climb to $65.80 from $63.77 at Friday's close. Conexant rose to $9.95 from Friday's close of $9.49.
The software sector was buffeted, however, after ABN-AMRO cut its ratings, revenue and profit views on several of the sector's companies.
BEA Systems fell to $18.40 on Instinet after ending Friday's session at $18.50. ABN-AMRO cut the software maker's rating to "add" from "buy". Veritas Software was also slapped after the investment house cut its rating to "hold" from "add". Its shares slipped to $38.10 on Instinet from Friday's close of $38.66.
