By Rex Crum

Technology stocks started August on a strong note in early trading Monday as many bellwethers rose and helped push the tech-heavy Nasdaq Composite Index closer to the 2,000-point mark.

The Nasdaq (RIXF) climbed 19 points to 1,997 in an attempt to close above 2,000 for the first time since last October. The Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) were also on the rise.

Gains came from Microsoft Corp. (MSFT), Dell Inc. (DELL), IBM Corp. (IBM), Cisco Systems Inc. (CSCO) and Intel Corp. (INTC).

Apple Inc. (AAPL) shares rose $3.01 to $166.45. Before the market opened, Apple said that Google Inc. (GOOG) Chief Executive Eric Schmidt had resigned from Apple's board of directors. In a statement Apple CEO Steve Jobs said it was the "right time" for Schmidt to leave Apple's board because of growing competition between the two companies.

Google recently said it would launch its own computer operating system, potentially competing against Apple, and Apple also blocked the new Google Voice application for wireless devices from being able to be used on the iPhone.

 
 

Semiconductor stocks got a lift after following the latest sales figures from the Semiconductor Industry Association trade group.

The SIA said that while worldwide chip sales fell 20% in the second quarter from a year ago, the $51.7 billion in sales were up 17% from the first quarter of the year. The SIA also said chip sales rose for the fourth-consecutive month.

Among chip stocks, gains came from Micron Technology Inc. (MU), Advanced Micro Devices Inc. (AMD), Nvidia Corp. (NVDA) and Applied Materials Inc. (AMAT).