Tech Stocks: Apple at record high; RIM up on sale talk

SAN FRANCISCO (MarketWatch) � Technology stocks rallied Tuesday, as shares of Apple Inc. closed at a record high, while Research In Motion Ltd. gained on a report that it�s considering a sale.

Apple�s AAPL �stock traded up 1.2% to close at $424.70 for a new all-time closing price for the Cupertino, Calif.-based tech giant. Apple�s previous record close was $423.24 on Jan. 10.

RIM RIMM �added 8% to close at $17.47 after the Boy Genius Report tech blog said the BlackBerry maker is exploring a possible sale to Samsung, citing unnamed sources.

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Also posting gains were shares of Applied Materials Inc. AMAT , which jumped after an upgrade based on a upbeat view of the company�s 2012 prospects.

RBC Capital analyst Mahesh Sanganeria raised Applied Materials to outperform from sector perform, saying it�s �well positioned to outperform semicap stocks in 2012.� The shares traded up 2.4% to close at $11.78.

�We believe stock underperformance has bottomed,� he wrote, noting that Applied is standing in a good position in the face of a �challenging� business environment.

Another notable gainer, shares of Cypress Semiconductor Corp. CY �moved up 2.8% to close at $17.77.

Gains also came from International Business Machines Corp. IBM , shares of which traded up 0.5% to close at $180, as well as Oracle Corp. ORCL , which gained 1.2% to close at $27.66.

The Nasdaq Composite Index COMP �edged up 0.6% to close at 2,728. The Morgan Stanley High Tech 35 Index MSH �and the Philadelphia Semiconductor Index SOX �were also each up fractionally.

Shares of Intel Corp. INTC �edged down 0.4% to close at $25.04 as the chip giant geared up for fourth-quarter financial results scheduled to be reported Thursday. A J.P. Morgan analyst downgraded the Santa Clara, Calif.-based company, part of the Dow Jones Industrial Average DJIA , to neutral from overweight, arguing that Intel�s margins are peaking.

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Analyst Christopher Danely also sounded unimpressed with Intel�s push into the tablet and smartphone categories, saying �although Intel is making inroads ... we do not expect it to have a material impact to its earnings.�

Referring to ARM Holdings PLC ARMH ,�whose chip designs are dominant in the mobile market, he added: �We believe Intel is at a disadvantage to ARM-based chips in three key metrics of mobile computing: power, cost and software.�

On the other hand, JMP Securities analyst Alex Gauna maintained a buy rating on Intel, citing the company�s initiatives this year, led by its Ultrabook concept for a new class of slim, full-powered notebooks.

Also on the downside Tuesday, shares of Brocade Corp. BRCD �fell 6.2% to close at $5.42, while VMware Inc. VMW �shed 1.7% to close at $84.

Shares of Compuware Corp. CPWR �tumbled 9.5% to close at $7.49 after announcing preliminary results for the third quarter before the bell.