MORGAN STANLEY says semiconductor stocks could face less pressure next month but
may still find support well below current prices. Mike Wilson’s strategy team
kept its S&P 500 year-end target at 8,000, while flagging semiconductors and
other capex beneficiaries as the epicenter of financing risk as markets question
when and how large AI-driven revenue will be. The team said concern over supply
pressure tied to ongoing financing is normal and likely to persist until
financings finish. They view the sector’s correction as in a final phase and
expect it to end by mid-November, but technicals and parallels with prior hot
markets (eg, silver) suggest a further 10–15% downside, putting the Philadelphia
Semiconductor Index around 9,500.
