Investing.com - Lattice Semiconductor propped up chip stocks after it reported results that beat estimates on the top line.
Lattice Semi (NASDAQ:LSCC) reported Tuesday after closing bell, sending its shares 27% higher.
The chipmaker reported earnings of $0.08 a share, in line with estimates compiled by Investing.com. Revenue of $96 million topped estimates for $95.1 million, led by growth in communications and computing.
Analysts touted further growth for the company in industrial and automotive markets despite the challenging backdrop in these industries amid a slowdown in China.
"Rising automation in factories and increased electronic content in vehicles" will help performance, said CFRA, an independent research provider. "We see greater revenue opportunities from 5G infrastructure builds in the second half and '20 as well as increasing revenue opportunities in data center servers."
For the first quarter, Lattice expects to report revenue in the range of $94 million and $98 million.
Xilinx (NASDAQ:XLNX), meanwhile, fell on reports that talks to acquire Israeli chipmaker Mellanox Technologies (NASDAQ:MLNX) broke down last week after Mellanox founder and CEO Eyal Waldman demanded $6.7 billion, Globes reported on Wednesday, citing Israeli newspaper Haaretz.
Waldman pushed the asking price to $6.7 billion from a previous range between $5.5 billion and $6 billion as a bidding war is seemingly brewing with Xilinx, Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) circling, according to the report.
The Philadelphia Semiconductor Index rose 0.5%, adding to strong gains for the year to date of about 15%.