Riverbed is the market share leader in the attractive, high ROI WAN Optimization market with strong underlying fundamentals driving data center consolidation and virtualization. We continue believe Riverbed is well positioned to benefit from surging bandwidth demand, which hasn't cooled off despite the turbulent macro environment, with further share gain opportunities and TAM expansion potential. Riverbed shares closed down 3% Friday at $19.96. The stock is down about 40% so far in 2011, and most analysts are bullish with 23 of the 37 analysts covering the stock at strong buy (13) or buy (10). JPMorgan has an overweight rating.
Intel is a dominant player in the data center as it holds 94% share in the server microprocessor market, its highest level since 2004. We believe positive trends in the data center should help the company offset choppy PC demand. Shares of the no. 1 chip maker closed Friday at $21.33, down 4%. Year-to-date, the Dow component's stock is still up less than 5%. Of the 51 analysts covering Intel, 30 rate the stock either a strong buy (16) or buy (14). JPMorgan is at overweight.
Broadcom is the leading provider of Ethernet controllers and its products are used extensively by top-tier networking OEMs like Cisco, Juniper, and Huawei. Consequently, we believe BRCM will be one of the major beneficiaries of the transition from 1G to 10G Ethernet, which the CIO survey suggests is still in the early innings. Shares of Broadcom close Friday at $33.29, down 2.7%. The stock down nearly 22% so far in 2011 but 31 of the 42 analysts covering the communications chip maker are bullish with strong buy (15) or buy (16) ratings. JPMorgan has an overweight rating.
We believe that Oracle is increasingly becoming more strategic to its customer base as the one-stop shop for software and hardware combined systems. Oracle shares finished Friday at $28.74, down 3%. Year-to-date, the stock has given back 6%. The believers far outnumber the doubters on Wall Street with 35 of the 43 analysts covering the shares at strong buy (15) and buy (20). JPMorgan is at overweight.