Technology Sector Update for 02/20/2018: NXPI,QCOM,GRMN,SNAP,UBNT

Top Tech Stocks

MSFT +0.95%

AAPL +0.87%

IBM -0.70%

CSCO -0.15%

GOOG +1.40%

Technology stocks were sharply higher again on Tuesday, with shares of tech companies in the S&P 500 adding over 0.7% in value while the Philadelphia semiconductor index was posting a more than 2.1% gain.

Among technology stocks moving on news:

+ NXP Semiconductors ( NXPI ) rose over 6% during Tuesday trading, touching a new record high of $125.93 a share, after Qualcomm ( QCOM ) agreed to increase its offer for the rival chipmaker by 15.9% over its most recent bid of $110.00 for each NXP Semi share to a new $127.50 per share. The revised agreement also lowers the minimum threshold for tendered shares by 10 percentage points to 70%. In prepared remarks, Qualcomm CEO Steve Mollenkopf said he was still confident the company will reach its FY19 target for adjusted per-share earnings between $6.75 to $7.50, which includes a $1.50-per-share contribution from NXP Semi. The revised offer expires March 5, Qualcomm said, adding the proposed transaction has been approved by eight of the nine regulatory bodies needed for the deal to advance.

In other sector news:

– Garmin ( GRMN ) was edging higher this afternoon, erasing a nearly 1% slide earlier Tuesday, that followed the navigation and location tools manufacturer acquiring Trigentic AB, a Swedish provider of specialty embedded systems, power supply and power distribution equipment for the marine and recreational vehicle markets. Financial terms of the deal were not disclosed.

– Snap Inc ( SNAP ) declined as much as 7%, sinking to a session low of $19.05 a share after Citigroup analysts Tuesday reduced their investment recommendation for the social network company to Sell from Neutral.

– Ubiquiti Networks ( UBNT ) retreated Tuesday, sinking more than 30% lower soon after the opening bell and following the US Securities and Exchange Commission Feb. 13 issuing subpoenas to the company and certain executives seeking “documents and information relating to a range of topics, including metrics relating to the Ubiquiti Community and the company’s accounting practices, financial data, international trade practices and its relationships with distributors and other third parties.” Ubiquiti said it was “fully” cooperating with the requests.