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News > Technology
Chips help techs inch higher
New Wi-Fi chip from Intel and a positive day for most bellwethers offset big loss at ARM.
August 23, 2004: 5:36 PM EDT

NEW YORK (CNN/Money) - News on a new chip from Intel helped balance out an acquisition by ARM that sent its stock reeling, leaving most technology indexes slightly higher Monday.

The Nasdaq gained, edging up less than a point to close at 1,838.70, while the Philadelphia Semiconductor index rose 4.09, or 1.06 percent, to close at 390.09.

Intel Corp. this week is expected to introduce a chip that adds support for a relatively obscure version of Wi-Fi, analysts said Monday, in a move that could help ease congestion on wireless networks.

In a news briefing scheduled for Thursday, Intel is expected to announce the availability of a "tri-mode" Wi-Fi chip that supports the two most popular wireless data technology varieties -- 802.11b and its speedier cousin, 802.11g -- and the less-used 802.11a. Intel's current chips support only the "b" and "g" varieties.

Intel's (INTC: Research, Estimates) stock rose more than 1.2 percent to close at $21.89.

One of the day's big losers was ARM Holdings PLC (ARMHY: Research, Estimates), which agreed to buy U.S. chip components firm Artisan Components Inc. (ARTI: Research, Estimates) for what analysts believe is an inflated price.

ARM's takeover represents a premium of around 42 percent to Artisan's closing share price Friday of $23.88.

ARM shares lost almost 20 percent to end the day at $4.46, while Artisan, predictably, gained more than 15 percent to close at $27.60.

International Business Machines Corp. widened its lead last year in the U.S. market for Internet-hosting services, winning a greater share of the medium-size business market, according to data recently published by market research firm IDC. IBM's Web-hosting business has grown at a compound rate of about 20 percent over the past three years, and it appears to be accelerating. In the most recent quarter, the business grew by 30 percent from a year earlier.

Artisan Components Incorporated
ARM Holdings Plc
Computing and Information Technology

Nonetheless, shares in IBM (IBM: Research, Estimates) lost about 0.7 percent to close at $84.65.

Among other tech bellwethers, Microsoft (MSFT: up $0.12 to $27.24, Research, Estimates), Cisco (CSCO: up $0.30 to $19.18, Research, Estimates), Yahoo (YHOO: up $0.02 to $28.63, Research, Estimates), Google (GOOG: up $1.10 to $109.40, Research, Estimates) and eBay (EBAY: up $0.98 to $82.35, Research, Estimates) all rose.

Sun Microsystems (SUNW: down $0.03 to $3.67, Research, Estimates) and Dell (DELL: up $0.08 to $34.94, Research, Estimates) lost. Oracle (ORACLE: Research, Estimates) remained flat.

And RCN Corp., which filed for Chapter 11 bankruptcy in May, said Monday it and some subsidiaries have filed a plan of reorganization to reduce debt by $1.2 billion.  Top of page

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