{"id":5341,"date":"2026-07-06T15:15:43","date_gmt":"2026-07-06T15:15:43","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5341"},"modified":"2026-07-06T15:15:43","modified_gmt":"2026-07-06T15:15:43","slug":"mu-amd-other-chip-stocks-gain-but-morgan-stanley-sees-pivot-away-from-chipmakers","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5341","title":{"rendered":"MU, AMD, other chip stocks gain, but Morgan Stanley sees pivot away from chipmakers"},"content":{"rendered":"
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Semiconductor stocks were in the green on Monday, but Morgan Stanley says recent weakness in the category suggests investors are increasingly looking beyond chipmakers and toward a broader set of beneficiaries from the artificial intelligence boom.<\/p>\n

In a note released on Monday, the brokerage said the recent weakness in US semiconductor shares suggests market leadership is broadening. <\/p>\n

It added that hyperscalers \u2014 large technology companies investing heavily in artificial intelligence infrastructure and data centres \u2014 are well positioned to outperform as the market rotates away from semiconductor names.<\/p>\n

The group of hyperscalers includes companies such as Microsoft, Amazon and Meta Platforms, all of which have committed billions of dollars to expanding AI infrastructure.<\/p>\n

“We also believe this cohort possesses attractive optionality within the AI ecosystem: strong core businesses, the ability to participate in\/lead the agentic application layer development and implementation, as well as an underappreciated cost-cutting lever,” the strategists said.<\/p>\n

Although these technology giants have sharply increased capital expenditure to support AI development, investors continue to debate whether AI-powered products will generate sufficient returns to justify the spending.<\/p>\n

Morgan Stanley, however, said there could be “more capex discipline in the near-term” and argued that hyperscaler stocks have already endured a period of underperformance.<\/p>\n

Despite the note, chip stocks were up on Monday, with Micron up by over 4.1%, AMD up by over 9.4%, Nvidia up by about 0.6%, and Marvell Technology up by 5.1%.<\/p>\n

Chip rally loses momentum<\/h2>\n

The brokerage’s comments come after semiconductor stocks significantly outperformed the broader technology sector over recent months.<\/p>\n

While Alphabet, Amazon, Meta Platforms and several other hyperscalers faced heavy selling in June, the Philadelphia Semiconductor Index climbed 11% during the month.<\/p>\n

However, sentiment has shifted in recent weeks. <\/p>\n

The Philadelphia Semiconductor Index has now fallen nearly 14% from its record high reached last month as investors grow increasingly concerned about stretched valuations.<\/p>\n

Even after the pullback, the index remains about 123% higher since September, highlighting the scale of the rally that has been driven by surging demand for AI chips and data-centre hardware. <\/p>\n

Over the same period, a UBS basket tracking hyperscaler stocks has declined 2%.<\/p>\n

Morgan Stanley believes this changing performance reflects a natural rotation within the AI investment theme rather than a collapse in enthusiasm for artificial intelligence.<\/p>\n

Broader market rotation expected<\/h2>\n

The brokerage also expects the market rotation to extend beyond technology.<\/p>\n

Wilson said easing expectations for additional Federal Reserve interest-rate hikes, combined with declining crude oil prices, should provide support for consumer discretionary companies, transport stocks and biotechnology firms.<\/p>\n

The strategists nevertheless warned that the semiconductor pullback could create greater volatility across equities because many of the largest chip companies have become key drivers of broader market performance.<\/p>\n

While they described the recent weakness as part of the alternating leadership seen among AI-related sectors over the past two years, they cautioned that investors should expect a “choppy\/weaker equity market overall.”<\/p>\n

Wilson maintained a year-end target of 8,000 for the S&P 500, implying roughly 7% upside from current levels. <\/p>\n

Earlier this year, he correctly predicted that US equities would look past geopolitical tensions as strong corporate earnings continued to support valuations.<\/p>\n

Morgan Stanley’s outlook echoes views expressed by other Wall Street strategists. <\/p>\n

JPMorgan strategist Mislav Matejka has also argued that the second half of the year is likely to see market leadership broaden beyond technology.<\/p>\n

“AI is unlikely to be the only story in town,” Matejka wrote in a recent note.<\/p>\n

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The post MU, AMD, other chip stocks gain, but Morgan Stanley sees pivot away from chipmakers<\/a> appeared first on Invezz<\/a><\/p>\n

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Semiconductor stocks were in the green on Monday, but Morgan Stanley says recent weakness in the category suggests investors are increasingly looking beyond chipmakers and toward a broader set of beneficiaries from the artificial intelligence boom.In a note released on Monday, the brokerage said the recent weakness in US semiconductor shares suggests market leadership is…<\/p>\n","protected":false},"author":1,"featured_media":5342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5341"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5342"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}