Morgan Stanley strategists led by Michael Wilson say U.S. equity flows are
rotating out of chip stocks into previously lagging hyperscalers — including
Microsoft, Amazon and Meta — driven by their strong core businesses and role in
AI data‑center demand. The team warns momentum is fading among some large-cap
names, leaving major U.S. indices under short-term pressure while sector
rotation continues in a generally weak market. Wilson adds recent
underperformance could begin to soften expectations for hyperscalers’ spending
plans. Morgan Stanley sets an S&P 500 year‑end target of 8,000, implying roughly
7% upside from current levels.
