Semiconductor stocks climbed higher Friday following the financial results of bellwether chip giant Intel. But despite the robust results that beat Wall Street's estimates, analysts expect the industry's revenue growth will cool off to 5% for the year, versus the 30% seen last year.
After two years of go-go growth in the semiconductor sector as customers restocked lean inventories, the industry is expected to post more modest growth in 2011 as it faces lower average selling prices for chips and the cyclical demand for semiconductors hits a lull.
Marvell Technology Group shares jumped more than 9% in premarket trading after it gave a positive outlook in its quarterly report Thursday and announced a share buyback plan. Marvell, which makes parts for computer hard drives, networking equipment and mobile phones, said its earnings nearly quadrupled in the quarter.