Lates News

Morgan Stanley says the pressure on semiconductor stocks may ease next month. The strategist team led by Mike Wilson maintained its forecast that the S&P 500 will reach 8,000 by year-end, but also noted that semiconductor stocks, a key sector, may find support at a level well below current levels. The strategist team said that as the market grows doubtful about when the revenue opportunities brought by AI will materialize and just how large they will be, semiconductors and other industries benefiting from capital expenditure are becoming the "epicenter" of financing concerns. Given that more financing activity may come in the future, the team said: "It is only normal for the market to focus on this supply pressure, and this concern will likely persist until the financing is completed." They believe the good news is that the correction in the semiconductor sector has entered its "final stage" and is expected to end in mid-November; the bad news is that, based on their technical analysis and comparison with the once red-hot silver market, the sector may fall another 10% to 15%; the Philadelphia Semiconductor Index may fall to around 9,500 points in the future.