Personal Computer Stocks Jumping Today

Microsoft is up 2.5%, Intel is up 2.4%, Dell is up 3.7%, Applied Micro is up 2% and Micron Research is up 2.4%. The group is far outpacing the Nasdaq Composite, which is up 0.8%.

Cloud computing and mobile devices like Apple's iPad have prompted wild talk that the PC world is toast. No doubt, the emerging mobile/cloud world does threaten the PC universe, although Amazon's recent "cloud" problems raised some eyebrows. Nevertheless the pace of the PC sector's demise is being hotly debated, especially afterwards Intel reported blowout revenues last week and promised robust growth up ahead.

BofA Merrill Lynch, which rates Microsoft a buy, says Intel's report indicates that PC sales may not be as weak as some innovation surveys indicate. BofA ML adds that its recent survey of IT buyers found that buyers expect only 4% of current PCs to be replaced by iPads. BofA ML reiterated its "buy" rating.