Morgan Stanley upgrades IT hardware view on chipflation-driven demand

Analyst
โดย Investing.com·US·Read original
Summary · why it matters

Morgan Stanley has upgraded its U.S. IT hardware industry view to In-Line from Cautious, citing accelerating infrastructure demand driven by memory chipflation. Analyst Erik Woodring said enterprises increasingly see chipflation as a multi-year structural headwind and are accelerating purchases of PCs, servers, and storage to lock in favorable prices, a dynamic he called Fear of Missing Procurement. The firm upgraded Hewlett Packard Enterprise and Pure Storage to Overweight and NetApp to Equal-weight, while downgrading Teradata. Morgan Stanley now prefers storage over servers over PCs and raised estimates across its OEM universe, sitting 9% to 12% above consensus on 2026 and 2027 EPS. However, the firm stressed the tailwinds are primarily cyclical and warned that hardware stocks, up over 100% since the start of 2025, trade at historically expensive levels, with the cycle potentially rolling over beginning in 2027.

Impact on stocks 6

Artificial Intelligence± Mixed · 2 stocks
Teradata Corp
TDC
▼ NegativeDemandrelevance

Downgraded as Morgan Stanley prefers storage over servers, implying weaker demand for Teradata's offerings.

Information Technology▲ · 2 stocks
Pure Storage Inc
PSTG
▲ PositiveDemandrelevance

Upgraded to Overweight, with preference for storage over servers on chipflation-driven demand.

Cloud & Digital Infrastructure▲ · 1 stocks
NetApp Inc
NTAP
▲ PositiveDemandrelevance

Upgraded to Equal-weight, benefiting from accelerated storage purchases due to chipflation.

Financials▲ · 1 stocks

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