Shares of cellular carriers and chip suppliers rose following Apple's announcement of a new iPad, which sports 4G LTE connectivity, a mega-high resolution display and a camera with more megapixels.
Oddly though, shares of Apple , the company behind it all, were little changed.
AT&T and Verizon both rose after they were named the official carriers of the device deploying that faster wireless network. The top model—a 64 GB model with 4G and Wi-Fi capability—will retail for $829. The Wi-Fi only, 16GB model will sell for $499.
“AT&T and Verizon are probably the biggest beneficiaries that I can see as iPad buyers are early adopters and are willing to spend $800 for the high-end device,” said Dan Nathan, author of the RiskReversal.com , a stock and options research blog.
“4G data usage should explode and as an added bonus, both stocks are defensive with massive dividend yields.”
Shares of Qualcomm, Texas Instruments, Broadcom and NXP Semiconductors all climbed following the iPad unveiling, which began at 1pm ET. These chipmakers are listed as official suppliers to Apple on the company’s web site, yet the tight-lipped company did not confirm that these companies’ parts were in the new device. Investors bid the stocks up anyway.Page 1 of 3 | Next Page