Morgan Stanley Shifts Preference in Semiconductor Industry: Western Digital Corp. Takes Priority over Nvidia Corp.

In a surprising move that has caught the market off guard, Morgan Stanley has adjusted its preferences among semiconductor suppliers. After analyzing the sector, analysts have raised their recommendation for Western Digital Corp. (WDC) and lowered their recommendation for Nvidia Corp. (NVDA).

The decision was not driven by the advancement of artificial intelligence, which currently dominates the industry. Instead, the main factor influencing the decision was the potential profit value of Western Digital’s stocks, with a predicted growth of over 25%. According to Morgan Stanley analyst Joseph Moore, there is a significant disparity in the valuation of Western Digital compared to other semiconductor providers. The increasing interest from investment firms has contributed to the rising value of Western Digital Corp.’s stocks.

Another factor that influenced the decision to raise the recommendation for WDC was the upcoming split of the company into memory and disk segments. The analyst believes that this separation will be beneficial for investors and contribute to the growth of stock value.

Additionally, Moore highlighted the positive trends in the NAND memory segment, which have also fueled investor interest in Western Digital Corp.’s stocks.

While Western Digital’s main competitor, Nvidia, has been pushed to second place in the recommendation, Morgan Stanley acknowledges that Nvidia’s stocks also hold a significant value and may generate profits for investors in the long run. However, investors should consider potential difficulties in the field of artificial intelligence that could impact Nvidia’s future development.

Although Morgan Stanley’s decision has surprised the markets, investment recommendations are not absolute indicators, and investors should also consider other factors such as the company’s policies, industry competition, and market conditions.

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The source of the article is from the blog toumai.es