Goldman's 8 Best Tech Stocks for 2011

(TheStreet) -- Goldman Sachs' GS top technology-stock picks for this year include ever-popular performers such as Apple AAPL, maker of the iPad and iPhone, to companies only known within their industries, such as chip-equipment manufacturer Teradyne TER. The New York-based investment bank gives price targets and the premiums they represent to their closing price as of Dec. 29, 2010. Each company gets a "buy" rating on Goldman Sachs' so-called Conviction Buy List. On the list are eight technology stocks. Technology stocks are off to a roaring start this year as the prospects of an economic rebound fuel hopes that businesses and consumers will spend big. The chip sector has rebounded strongly after a prolonged recession, and the question is now whether that can be sustained. Semiconductor stocks, as tracked by Morningstar, are up 5.4% this year, while semiconductor-equipment and materials shares are up 8.1%, and communications-equipment stocks are up an average of 11%. The S&P 500 Index has gained 3.2% so far in 2011. Below are the stocks, in order, of Goldman Sachs' projected share-price return potential, ranked from least to most. Continue reading the article.