NEW YORK (CNN/Money) - Technology stocks finished mostly higher Tuesday as investors bought shares of JDS Uniphase Corp. on news of a big investment in fiber optics.

The tech-dominated Nasdaq Composite index rose 19.77 points, or 1 percent, to finish at 1,994.15. The Philadelphia Semiconductor index closed 15.65 points, or 3.5 percent, higher at 466.42.

Shares of JDS Uniphase (JDSU: up $0.38 to $3.58, Research, Estimates), which supplies parts to boost the speed and capacity of fiber optic networks, surged 12 percent. Avanex Corp. (AVNX: up $0.40 to $3.00, Research, Estimates), which provides systems for fiber optic communications networks, rose more than 15 percent.

SBC Communications Inc. (SBC: down $0.33 to $24.07, Research, Estimates) said it plans to build a new fiber optic network at a cost of $4 billion to $6 billion over the next five years in an effort to offer more services to compete with cable companies.

The move by SBC, the second-largest U.S. telephone company, comes as the "Baby Bells" struggle to find new markets such as on-demand video services while a host of new competitors target their traditional telephone business.

Shares of SBC (SBC: down $0.33 to $24.07, Research, Estimates) fell about 1.4 percent on Tuesday.

Intel Corp. (INTC: up $0.52 to $28.04, Research, Estimates) was among the Dow's biggest percentage gainers and also helped lift the Nasdaq 100. Intel's rival Advanced Micro Devices Inc. (AMD: up $0.57 to $14.67, Research, Estimates) also rose sharply.

Among other tech heavyweights, Microsoft Corp. (MSFT: down $0.06 to $28.29, Research, Estimates) ended slightly lower, while Oracle Corp. (ORCL: down $0.03 to $11.12, Research, Estimates) gained 1.5 percent. The two stocks, along with JDS Uniphase, were the three most active stocks on the Nasdaq.

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Sun Microsystems (SUNW: up $0.15 to $4.24, Research, Estimates) and Cisco Systems (CSCO: up $0.35 to $23.22, Research, Estimates) also finished higher.

Positive earnings from PalmOne Inc. (PLMO: up $7.90 to $29.36, Research, Estimates) also helped underpin the tech sector.

PalmOne ranked among the Nasdaq's biggest percentage gainers, a day after the hand-held computer maker reported earnings that surpassed estimates. On the Nasdaq, PalmOne shares soared nearly 40 percent.  

-- from staff and wire reports