By Benjamin Pimentel

The technology sector traded higher Thursday, powered by gains in shares of Internet giants Yahoo Inc. and eBay Inc.

Yahoo (YHOO) moved up 4.5%. On Wednesday, the company scored an upgrade to buy from Bank of America/Merrill Lynch, which told clients: "We believe that Yahoo is still a growth company which is now trading like a long-term secular decliner."

Shares of eBay (EBAY) also gained, up more than 3%.

Those gains allowed the Nasdaq Composite Index (RIXF) to stand more solidly on positive territory by early afternoon. The tech-heavy benchmark was up about 1% at 2,080 at last check.

Also higher, the Morgan Stanley High Tech 35 Index (MSH) was ahead 1.5%, while the Philadelphia Semiconductor Index (SOX) was up 1.7%.

Shares of Texas Instruments (TXN) were up slightly. On Wednesday, the chip giant raised its revenue and earnings outlook for the third quarter.

Intel Corp. (INTC) also traded down 0.7%, while Advanced Micro Devices (AMD) was ahead more than 4%.

Other major tech players posted gains, including Amazon.com (AMZN), Oracle Corp. (ORCL) and Apple Inc. (AAPL).