Top Technology Stock Picks for 2011 (AMD, GOOG, ARUN, NTAP, NVDA, PCLN, OPNT, MU)

ThinkEquity said "We recommend buying AMD shares, trading close to five-year trough valuations of 0.9x EV/TTM revenues and 5.9x EV/TTM EBITDA."

Spansion Inc. (NYSE: CODE): The brokerage view CODE as the market leader in the embedded NOR flash memory solutions segment. Spansion has a diversified customer base of over 4,000 global customers, good design win momentum, a focused new management team, a flexible Fab Lite manufacturing strategy and recent strong revenue and earnings growth.

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Since emerging from chapter 11 in May 2010, the company has executed well with four quarters of embedded flash revenue growth, regained market share of 2-3 points every quarter, achieved strong design win momentum, and generated strong cash flow from operations.

Entropic Inc. (NASDAQ: ENTR): The brokerage said its  checks suggest that the Entropic's ongoing business with equipment providers to DirecTV, Comcast, Cox, Time-Warner Cable continues to be strong.

"We believe ENTR may exit 2010 with 90-95% market share and while Broadcom may capture 20-25% of the market in 2011, we expect ENTR to maintain its leading position due to its technology lead and field-proven silicon," the analysts at ThinkEquity wrote in a note to clients.

 Micron Technology (NYSE: MU): The company's management has indicated a positive and more-balanced DRAM and NAND flash demand/supply outlook for 2011. The company also indicated a more-resilient near-term business model with low exposure to the weak PC DRAM segment (25 percent of revenues).

Micron also indicated strong demand for NAND flash and price reductions consistent with learning curve cost reductions. With many smartphone and iPad/new Web tablets ramping, Micron management expects the benign pricing environment for NAND flash to continue in 2011.

Nvidia Corp. (NASDAQ: NVDA): ThinkEquity analysts said the company is regaining momentum in the high-end PC graphics market with the GTX 580/570/560 family and focused on new potential growth opportunities in high-end computing and Web tablets.

Nvidia also holds its leading position in professional graphics and has won designs in the smartphone/Web tablet market at Asustek, Acer, Motorola, and HTC.

Going forward, the company's Tegra platform for smartphones/Web tablets on the Google Android platform and continuing growth in high-end cloud computing and professional graphics with Quadro would likely lead to steady earnings growth.

Aruba Networks Inc. (NASDAQ: ARUN): The company is set to benefit from the rapid proliferation of wi-fi devices and WLAN adoption across the globe. As enterprises move to 802.11n WLANs, there is a need to upgrade the infrastructure of the WLAN significantly, which is unlike the change from 11b to 11g, creating a significant opportunity for Aruba to gain market share.