Cavium Outlook Cut Sends EZchip to 8-Month Low: Israel Overnight
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EZchip Semiconductor Ltd., the Israeli maker of network processors, dropped to the lowest level in eight months in New York after U.S. competitor Cavium Inc. reduced its sales forecast for the fourth quarter.
EZchip fell 4.3 percent to $28.42 on the Nasdaq Stock Market, paring its gains this year to 1.1 percent. The Bloomberg Israel-US 25 Index of the largest Israeli companies traded in New York declined 1.9 percent, the most in a week, led by Teva Pharmaceutical Industries Ltd. EZchip shares in Tel Aviv declined 2.3 percent to 108.60 shekels or $28.51 at the 4:30 p.m. close in Tel Aviv. The benchmark TA-25 index dropped 2.5 percent to 1,085.59, bringing the decline this year to 18 percent.