Apple Computers
It was the favourite fruit of founder Steve Jobs. He was three months late in filing a name for the business, and he threatened to call his company Apple Computers if the other colleagues didn't suggest a better name by 5 O'clock.

CISCO
It is not an acronym as popularly believed. It is short for San Francisco.

Compaq

This name was formed by using COMp, for computer, and PAQ to denote a small integral object.

Google
The name started as a joke boasting about the amount of information the search-engine would be able to search. It was originally named 'Googol', a word for the number represented by 1 followed by 100 zeros.After founders - Stanford graduate students Sergey Brin and Larry Page presented their project to an angel investor, they received a cheque made out to 'Google'
 

Hotmail
Founder Jack Smith got the idea of accessing e-mail via the web from a computer anywhere in the world.When Sabeer Bhatia came up with the business plan for the mail service, he tried all kinds of names ending in 'mail' and finally settled for hotmail as it included the letters "html" - the programming language used to write web pages. It was initially referred to as HoTMaiL with selective uppercasing.
 

Intel
Bob Noyce and Gordon Moore wanted to name their new company 'Moore Noyce' but that was already trademarked by a hotel chain so they had to settle for an acronym of INTegrated ELectronics.
 

Lotus (Notes)
Mitch Kapor got the name for his company from 'The Lotus Position' or 'Padmasana'. Kapor used to be a teacher of Transcendental Meditation of Maharishi Mahesh Yogi.
 

Microsoft
Coined by Bill Gates to represent the company that was devoted to MICROcomputer SOFTware. Originally christened Micro-Soft, the '-' was removed later on.
 

Motorola
Founder Paul Galvin came up with this name when his company started manufacturing radios for cars. The popular radio company at the time was called Victrola.
 

Sony
It originated from the Latin word 'sonus' meaning sound, and 'sonny' a slang used by Americans to refer to a bright youngster.
 

SUN
Founded by 4 Stanford University buddies, SUN is the acronym for Stanford University Network. Andreas Bechtolsheim built a microcomputer; Vinod Khosla recruited him and Scott McNealy to manufacture computers based on it, and Bill Joy to develop a UNIX-based OS for the computer.
 

Yahoo!
The word was invented by Jonathan Swift and used in his book 'Gulliver's Travels'. It represents a person who is repulsive in appearance and action and is barely human. Yahoo! Founders Jerry Yang and David Filo selected the name because they considered themselves yahoos