Morgan Stanley Admits to "Taking the Wrong Side", Swiftly Upgrades US IT Hardware Sector: "Chipflation" Is Transforming from a Demand Killer to a Procurement Frenzy Catalyst, Storage Stocks Most Favored

Golden Ten Data APP has learned that Morgan Stanley has shifted from its previous cautious stance and upgraded the rating for the US IT hardware industry. The reason is that the continued surge in memory chip prices, described as “chipflation,” has not suppressed demand but instead has compelled companies to accelerate procurement, causing a wave of “fear of missing out on purchases” and stockpiling. However, the firm also cautions that the current market is mainly driven by cyclical factors, and once the cycle of profit upgrades peaks, it will turn cautious again.