Intel's upgrade carries chip sector higher

Intel Corp. (Nasdaq: INTC) led chip stocks higher in Tuesday trading after receiving an upgrade from SG Cowen. Its shares hustled up 4 11/16, or 7 percent, to 67 9/16.

In a research report, SG Cowen's Drew Peck upgraded the chipmaker from a "neutral" rating to "buy" based on strong personal computer sales in the second half.

Peck also upped his 1999 estimates from $2.25 to $2.33 a share.

First Call consensus expects Intel to earn $2.27 a share in the fiscal year.

Intel's success helped carry the sector in Tuesday trading.

Micron Technology Inc. (NYSE: MU) shot up 5 1/2 to 57 1/2. National Semiconductor Corp. (NYSE: NSM) added 1 1/16 to 26 11/16 and Broadcom Corp. (Nasdaq: BRCM) picked up 5 15/16 to 118 7/8.

Advanced Micro Devices Inc. (NYSE: AMD) rose 3/8 to 16 3/4 and Texas Instruments Inc. (NYSE: TXN) moved up 5/8 to 102 7/8.

Hewlett-Packard Co. (NYSE: HWP) also helped out the hardware sector after Salomon Smith Barney analyst John Jones Jr. raised his 12-month target price on the PC and printer maker from $105 a share to $130 a share.

H-P shares shot up 3 13/16 to 109 1/2.

"If the momentum continues into July, which we believe is the case, then HP should be able to produce our EPS estimate of 85 cents which is above the consensus estimate of 80 cents," Jones said in a research report.>