Texas Instruments is latest big computer chip maker to boost confidence in the technology sector with better than expected second quarter financial results.
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Last week chip makers Intel and Altera also reported better than expected results.
Both chip makers have predicted profit margins will increase this year, with Intel calling the bottom of the recession in April.
Texas Instruments reported second quarter sales of $2.46bn and profits of $260m, or 20 cents per share.
This is above analyst predictions of 19 cents on revenues of $2.42bn, according to the Financial Times.
Although revenues were down 27% on same period a year ago, they were 18% higher than the first quarter.
The company expects solid growth in the third quarter and predicts revenues of between $2.5bn and $2.8bn and earnings per share of between 29 and 39 cents.
Renewed confidence in the technology sector boosted by strong financial results from chip makers is expected to help bolster investor confidence.
Microsoft is expected to report its first ever dip in annual sales this week, but analysts predict investors will be unaffected.
Analysts believe investors are more likely to be influenced by the new wave of optimism in the sector and excitement around Microsoft's new Windows 7 operating system and Office 2010 productivity suite.