Rob Black's Tech Stock Report

Piper Jaffray notes they attended the Adobe’s (ADBE) Creative Suite Conference and says that consistent with previous surveys with creative pros, 75% of customers they spoke with said they would buy a fully integrated Adobe/Macromedia suite. They think Creative Pro loyalty to Adobe is high and they don't expect Microsoft (MSFT) to steal market share with new offerings.

AMD (AMD) plans to invest $2.5 bln during the next three years to expand chip production in its factories in Dresden, Germany. The company needs greater manufacturing capacity to take a bigger share of the chip market from rival Intel (INTC).

ThinkEquity believes volumes for AMD are weaker in May than in April, and think AMD should have trouble even reiterating its guidance at its analyst meeting scheduled for Thursday. They also hear from the channel that Intel's volumes have picked up in May. They say these volumes appear to be driven by very aggressive pricing. Firm continues to be wary of Intel's 2nd half 2006 hockey-stick guidance. They think both Intel and AMD are likely to continue to suffer.

UBS upgraded Sun Microsystems (SUNW) to Buy saying that a turnaround plan can deliver EPS improvement through 2008. Also they believe Sun's products are gaining some traction and its roadmap should provide some stability to the top line.

Applied Materials (AMAT) upgraded to Outperform from Sector Perform at RBC.

Credit Suisse upgraded ASML Holding (ASML) to Neutral. The upgrade is based on a strong cycle outlook, and lowered valuation.

First Albany downgraded Dell (DELL) to Neutral. The firm is noting IT market shift towards mobility. Dell Director Michael Dell bought 2.9 million shares at $23.99.

Piper Jaffray upgraded SiRF Technology (SIRF) to Outperform from Market Perform with a $38 target, based on continued growth in demand for chipsets designed into automotive personal devices, potential for mobile handset design wins to ramp during 2nd half 2006 and 2007, continued strong barriers to entry and valuation.