Morgan Stanley Urges Caution on Chipmakers Amid Pricing Power Concerns

Hyperdash News07/10/2026 14:37 UTCEquities

Morgan Stanley's Lisa Shalett has advised caution on chipmaker stocks, citing concerns over their limited pricing power. Shalett suggests that chip stocks may have rallied excessively due to optimism surrounding artificial intelligence spending, potentially leading to overvaluation in the sector.

This outlook from Morgan Stanley suggests a potential cooling in investor sentiment towards chipmakers, despite ongoing AI-driven demand. The firm's analysis points to a disconnect between market valuations and underlying pricing strength.

VanEck Semiconductor ETF has gained +0.40% on Hyperdash since the news, with

NVIDIA Corp. up +0.35% and

Advanced Micro Devices, Inc. higher by +0.02%.

Sources

Bloomberg

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