AppliedMicro (AMCC +26.9%) skies higher following it FQ2 report. Though results were ho-hum, the beaten-down telecom chipmaker guided on its earnings call for FQ3 revenue to rise 8%-12% Q/Q (consensus is for a 7% increase). It also announced a partnership with Red Hat (RHT) and ARM (ARMH) to develop server designs based on AppliedMicro's ARM CPUs. Evercore has added AppliedMicro to its Conviction Buy list, touting the company's backlog, share gains, and declining inventories. Rival PMC-Sierra (PMCS +2.1%) is up a bit.