STEC shares rise on potential computer drive contracts

NEW YORK—Shares of memory-chip maker STEC Inc. soared Monday after a number of analysts commented on the possibility of major contracts for the company's solid-state drives, a technology that seeks to replace conventional spinning computer drives.

Lazard Capital Markets analyst Daniel Amir said that his checks indicate STEC will supply solid-state drives to a major personal computer maker, most likely Apple, Hewlett Packard or Dell.

Amir described it as a "a significant milestone for the company" as it had been known mostly for its business technology chip sales

Its Mach-8 MLC solid-state drive can significantly reduced computer drive costs, which is attracting the attention of large-scale manufacturers, he said.

Separately, financial firm B. Riley upgraded STEC to "Buy" from "Neutral."

STEC shares rose 95 cents, or 11.6 percent, to close at $9.12 Monday. They have traded in the past 12 months between $5.67 and $11.05.