Durham-based Cree makes light-emitting diodes, or LEDs, that illuminate dashboards, cell phones, signs and other products. The company is breaking into the potentially massive global market for power-efficient, general lighting.

Fairfield, Conn.-based GE, which has a large lighting division, has been doing deals recently to expand in the LED market. Analysts have long speculated GE is a possible suitor for Cree, based on its size and apparent determination to become dominant in LED lighting.

“There’s takeover chatter with GE, and that’s all I’m seeing,” said Mario LoGrande, a trader at Caris & Co. in New York, told Bloomberg News. “The calls are active so people may be speculating that there’s potential for a takeover.”

Cree spokesman Greg Merritt did not immediately return a call seeking comment.

“We’re hearing the rumors, GE for Cree,” Ryan English, an option trader at Fifth Third Asset Management in Cincinnati, told Bloomberg News.

Cree shares rose $2.31 to $26.61 in midday trading. The stock is up 55 percent so far this year.