EZchip Surges to 3-Month High, Closes Gap With U.S. Stock

EZchip Semiconductor Ltd. (EZCH), a maker of network processors, rose to the highest in almost three months, after the company’s U.S. shares gained following better than expected results from Texas Instruments Inc. (TXN)

The stock jumped 5 percent to 129.10 shekels, or the equivalent of $34.08, at 3:17 p.m. in Tel Aviv, the highest intraday level since Nov. 2. The U.S.-traded shares advanced 3.5 percent to $34.02 yesterday. The Philadelphia Semiconductor Index, used to track chip industry performance, added 0.4 percent yesterday, extending this year’s gain to 14 percent.

Texas Instruments, the world’s largest maker of analog chips, said yesterday fourth-quarter sales and profit declined less than analysts had predicted, signaling to brokerage Benchmark Co. that the market for electronic components has bottomed out.

“Companies are talking about an end of inventory depletion and see increases in bookings,” Gary Mobley, an analyst at Benchmark, said by phone from New York yesterday.

To contact the reporters on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net; Tal Barak Harif in New York at tbarak@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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