By Benjamin Pimentel
Technology stocks slipped early Thursday, as shares of
semiconductor and data storage companies retreated at the opening
bell.
The Nasdaq Composite Index (RIXF) fell 14 points, or 0.6%, to
2,417, while the Philadelphia Semiconductor Index (SOX) sank even
lower by 1.9%.
Major chip makers saw their shares decline, including Advanced
Micro Devices Inc. (AMD), Texas Instruments Inc. (TXN) and SanDisk
Corp. (SNDK).
Compellent Technologies (CML) also highlighted the day's losses,
as its shares fell sharply by about 24% after the data storage
company lowered its revenue outlook.
Canaccord Adams analyst Paul Mansky downgraded the company's
stock to sell, citing the company's "dramatic reversal of
fortunes."
"We view the company as very likely to undergo material
revaluation as credibility and technological differentiation fall
under heavy scrutiny," Mansky said in a note.
Shares of EMC Corp. (EMC), the giant in the data storage market,
also were down 2%. Mansky of Canaccord Adams downgraded the stock
to hold, citing concerns that "VMware sentiment may be peaking, and
could suffer damage if the high-end server market fails to deliver
on schedule."
Shares of Qlogic Corp. (QLGC) also lost 4%. Canaccord Adams also
downgraded the stock to hold.
Shares of other major tech players declined, including Cisco
Systems (CSCO), eBay Inc. (EBAY) and Hewlett-Packard (HPQ).