Chip stocks mostly edged up in midday trading Wednesday, despite a sales forecast reduction by industry trade group the Semiconductor Industry Association.

On Wednesday, the SIA cut its 2007 semiconductor sales growth outlook to 1.8 percent from 10 percent. The SIA cited deteriorating prices for NAND flash memory, Dynamic Random Access Memory (DRAM) and microprocessors.

The Philadelphia Semiconductor Sector Index, which is comprised of 19 semiconductor related stocks, climbed 5.41 points, or 1.1 percent, to 487.21.

Although weak flash memory prices would presumably hurt SanDisk Corp. (nasdaq: SNDK - news - people ), the stock slipped only 20 cents to $43.85.

WR Hambrecht analyst Daniel Amir said that the company's quarter is on track, though he predicts prices in the NAND flash memory market will deteriorate over the next four to six weeks.

"Our channel checks indicate that the quarter remains on track as SanDisk price cuts have resulted in market share gains. Although we do expect inventory to increase into the September quarter, our checks suggest that this is more related to SanDisk's desire to be better positioned for the seasonally strong September quarter rather than a reflection of weak demand for the June quarter for SanDisk products," Amir wrote in a client note.

Elsewhere in the semiconductor sector, Intel Corp. (nasdaq: INTC - news - people ) shares added 16 cents to $22.36 and Advanced Micro Devices Inc. (nyse: AMD - news - people ) shares were unchanged at $13.80.