Morgan Stanley is bullish about the long-term prospects of the shares of Asian chip-makers.
It upgraded the chip sector in China and Japan to attract from in-line. In Japan, Disco Corp. is expected to climb the most. The bank also lifted price targets for Korea’s Samsung Electronics Co. and SK Hynix Inc. “We expect tech deflation - price elasticity - coupled with secular AI semi-demand will together trigger the next logic semi-upcycle. Historically, the reversion of semi-inventory days is a strong signal,” Morgan Stanley analysts noted.
In October, Morgan Stanley upgraded some companies from South Korea and Taiwan. Since then, chip gauges in both nations have surged by more than 27%.
Morgan Stanley said there was a jump in orders over the past two weeks for AI semiconductors, revising up earnings for Taiwan Semiconductor Manufacturing Co.
