Rob Black's Tech Stock Report

Citigroup reduced its 2006 and 2007 earnings' estimates for chipmakers Intel (INTC) and Advanced Micro Devices (AMD), citing concerns about the second-quarter microprocessor pricing environment. The broker cut AMD's 2006 earnings estimates to $1.14 from $1.28 a share and 2007 forecasts to $1.42 from $1.56 a share. It also reduced its price target to $33 from $42. Citigroup lowered Intel 2006 earnings estimates to 77 cents from 86 cents a share and 2007 forecasts to 97 cents from $1.01 a share. It left its price target unchanged at $21.

UBS cuts their target on Advanced Micro to $33 based on a lower target P.E multiple of 18x. This reflects their concerns regarding AMD's 1) cash flow challenges as a result of its aggressive capacity expansion plans. 2) competitive challenges from Intel based on its road map through 2008, and 3) Uncertainty over AMD's strategic direction.

Cisco Systems (CSCO) said its board approved the repurchase of up to $5 billion worth of its common stock. The networking equipment giant said the board previously authorized up to $35 billion in stock buybacks.

Digitimes reports that despite Nvidia's (NVDA) sequential growth in the PC graphics market lagging behind both Intel and ATI (ATYT), Nvidia is confident that its second-place position in the market (behind Intel) will remain secure this year. Nvidia also posted a bullish outlook for the 3G application market and anticipates a partnership with Microsoft should spur its market share further.

ThinkEquity cuts their Business Objects (BOBJ) target to $27. They attended a BOBJ user event yesterday and many of the customers they surveyed had no near-term purchase plans, which could reflect limited sample and/or limited spending.

Novellus' (NVLS) second- quarter profit will rise to as much as 40 cents a share, compared with a previous prediction of as much as 28 cents, Chief Financial Officer William Kurtz said. Sales will increase to as much as $410 million, compared with a forecast of $370 million to $380 million, he said.

Palm (PALM), the maker of Treo mobile phones, will replace Anteon International in the S&P MidCap 400 after the close of trading today.

Thomas Weisel maintains their Outperform rating on EMC (EMC) shares, following an analyst day that reiterated previous targets and long-term vision/strategy. They believe EMC has executed well on its road map to regain market share and enhance functionality to compete more effectively against Hitachi (HIT), HP (HPQ) and IBM (IBM). Thomas Weisel says EMC extended its market share lead in the mid-range external disk storage market to approximately 33% in recent quarters up from less than 10% just two years ago. They believes that the company is poised to further grow share in 2006 with solid execution and refresh cycles for both high-end Symmetrix arrays as well as mid-range CLARiiON product line.

Bear Stearns reduced its rating on the wireless tower sector to market weight from market overweight, citing uncertainty over the interest-rate environment and the impact rates have had on free cash flow multiples. The broker cut Crown Castle International (CCI) to peer perform from outperform and upgraded SBA Communications (SBAC) to outperform from peer perform.