Video | Morgan Stanley's Chief U.S. Equity Analyst: Chip Stocks May Correct by Over 30%, But S&P Still Targets 8000 Points by Year-End
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Morgan Stanley: Funds are rotating from chip stocks to AI cloud service providers; US stocks may struggle to reach new highs in the short term.
According to Mars Finance, Morgan Stanley strategists believe that US stocks may struggle to reach new all-time highs in the short term as investors take profits on tech stocks and rotate their assets. Strategist Wilson is bullish on hyperscale cloud service providers including Microsoft, Amazon, and Meta, believing their core businesses can support volatility in AI-related businesses. He predicts the S&P 500 will reach 8,000 points by the end of the year, with consumer discretionary, transportation, and biotechnology sectors potentially benefiting. (Cailian Press)
Morgan Stanley: AI chip fever is cooling down, cloud giants may see a rotation.
According to BlockBeats, on July 7th, Morgan Stanley strategist Mike Wilson's team stated that the cooling of semiconductor stocks over the past few weeks may not be over and could bring a more volatile trading environment to the broader US stock market. The bank believes that a rotation is underway within the AI sector. Previously, chip stocks significantly outperformed, while hyperscalers, including Microsoft, Amazon, Alphabet, and Meta, lagged behind. Wilson's team stated that this divergence may be unsustainable because the growth of semiconductor companies ultimately depends on the capital expenditures of cloud giants. Morgan Stanley stated that valuation and positioning pressures on cloud giants have already been priced in, and this sector could regain inflows if the market begins to reward more restrained AI spending. The bank is also optimistic about consumer discretionary and biotechnology, stating that falling oil prices and declining interest rate expectations could improve the risk-reward ratio of these sectors.
Morgan Stanley's Chief Economist for China, Xing Ziqiang: New-type productivity leads to strong export growth
According to Mars Finance, Xing Ziqiang, Chief Economist for China at Morgan Stanley, stated in his keynote speech titled "China's Economy Under the New Cycle of Technology and Energy" that China's economy performed steadily on the supply side in the first half of this year, with new-quality productivity becoming a key force supporting economic growth. From January to May, China's exports of AI-related infrastructure such as integrated circuits, semiconductors, and optical modules increased by 90% year-on-year, reaching over US$130 billion; exports of the "new three" products—electric vehicles, lithium-ion batteries, and solar cells—increased by 50% year-on-year, playing a crucial role in achieving the economic growth target in the first half of the year. (Cailian Press)
Morgan Stanley warns: US stocks may struggle to reach new highs as investors rotate out of tech stocks.
According to BlockBeats, on July 6th, Morgan Stanley strategists believe that the US stock market may face resistance in reaching new all-time highs as investors withdraw from this year's strongest-performing tech stocks and shift to other sectors. This rotation could weaken the market-leading pattern previously dominated by AI and tech mega-cap stocks. The bank's analysis points out that most of the current positive economic and earnings news has been priced in by the market, and index performance is stagnating. A truly unexpected boost is needed for continued upward movement. The market is looking for concrete evidence that massive AI capital expenditures will translate into sustained returns, rather than just ever-expanding spending figures. This uncertainty is prompting more funds to shift from mega-cap tech stocks to a broader range of stocks. Morgan Stanley advises investors to focus more on the achievability and quality of earnings, realize some gains in small-cap stocks, and increase allocations to AI application beneficiaries in certain sectors. Previous research by the bank also showed that although large-cap technology stocks performed strongly in the third quarter, their stock price increases have lagged significantly, and their valuations have subsequently declined. This contrasts sharply with the continued rise in industrial and cyclical sectors due to expectations of interest rate cuts, and is seen as further evidence that the market's capital structure is changing.
Morgan Stanley’s BlackRock Bitcoin ETF holdings rise 23% in Q2
Morgan Stanley’s reported IBIT holdings rose to 16.5 million shares in Q2, while Ether ETF positions and several crypto-linked stocks also increased.
Morgan Stanley reiterated its "overweight" rating on RKLB and raised its bullish price target to $293.
Odaily Odaily that Morgan Stanley reiterated its "Overweight" rating on Rocket Lab (RKLB) and maintained its target price of $105, but raised its most bullish target price from $185 to $293. Morgan Stanley analysts believe that the acquisition of Iridium will expand Rocket Lab's potential market space and reposition the company as a vertically integrated space platform. While SpaceX has significant scale and cost advantages over Rocket Lab, the latter is moving closer to the former's model.