“Breaking news, Applied Materials coming out with earnings. Let me get to the breaking news desk to get those numbers. Matt Nesto is on it.

Reaction is muted here. Earnings are coming in in line for their fiscal second quarter at Applied Materials down 10 cents per share…

Indeed you have seen these headlines crossing at the bottom of your screen. Intel’s CEO has taken the stage here at the company’s analyst meeting here in the Silicon Valley.  Paul made headlines when the company came out with first quarter earnings report indicating that Intel’s business had bottomed. He stopped by our broadcast position here on the way into I asked if he planned to reiterate those comments and he said absolutely…saying about the industry bottoming out and based on those comments we’re seeing Intel shares turn positive.” CNBC’s Closing Bell 5/12/2009

Two semiconductor stocks were getting a lot of attention after the close of trading today, as Applied Materials (AMAT) swung to a second quarter loss but revenue topped estimates.  The loss was not unexpected as revenue was down 53% from last year, but still topped estimates of $906.1 million, coming in at $1.02 billion.  The stock is basically unchanged in after hours trading as Chairman and CEO Mike Splinter said, “In a period of exceptionally weak demand, Applied preserved its strong balance sheet, returned a dividend to our stockholders and made substantial investments in our future.”

However, just about ten minutes after Applied Materials reported, Intel’s (INTC) CEO Paul Otellini went on stage at a meeting for investors and analysts and proclaimed that Intel has seen the worst.  When a CEO makes a pronouncement like that the market feeds on the excitement of the executive and now we are seeing Intel trade higher by about 4%.  Although we have both of these stocks valuation currently as Undervalued, the technology sector which had long been our top rated sector has fallen to third most attractive.  That is still good, but worth noting as technology has spend the last few months at the top and has enjoyed 24% rally in the last 13 weeks.

For more on all other stocks mentioned on CNBC’s Closing Bell click here.