Tech Shares Rise Amid Deal Activity -- Technology Roundup
Shares of technology companies rose amid deal activity.
South Korean chip maker SK Hynix and U.S. buyout firm Bain Capital plan to bid between $9 billion and $13.5 billion for more than half of Toshiba's memory-chip business, The Wall Street Journal reported.
There has been a transformation in the business of making memory chips in the last five years, said Thomas Digenan, head of U.S. intrinsic value equities at UBS Asset Management. "The DRAM market gone from 15 to 20 competitors down to 3," said Mr. Digenan. "One of those competitors is Samsung." Shrinking margins in other Samsung businesses such as television sets, means "they actually have an incentive" to maintain stability in prices of memory chips, the money manager said.
Shares of Autodesk rallied after it said its move to a subscription-based software model was progressing well.
-By Rob Curran, [email protected]