Morgan Stanley has a new top chip stock: replacing NASDAQ giant NVIDIA

In the race for a top position in the chip segment, the AI ​​giant NVIDIA has so far been the measure of all things for Morgan Stanley. However, that has now changed.

• NVIDIA is now only number 1 in the chip sector according to Morgan Stanley analysts
• Western Digital preferred
• Price target raised

For Morgan Stanley analyst Joseph Moore, the chip giant NVIDIA has so far been number 1 of the top recommendations in the area of ​​chip stocks. But one value has now convinced the experts even more.

Western Digital new number 1

Moore now sees the computer company Western Digital, which has become known as a hard drive manufacturer, as superior to its competitors, as MarketWatch reports. The expert emphasizes that there is an “extremely overwhelming” valuation gap between Western Digital shares and its competitors. Unlike many other market observers, Moore sees the company’s split into two separate disk and flash storage companies, announced in October, as positive: “Although the market seems to favor consolidation scenarios, the decision simplifies disk and storage resources towards the end of the year “to separate the matter completely,” MarketWatch quotes from a note from the analyst to clients.

NAND storage trend brings tailwind

In this context, he also assesses the prospects for the NAND memory market positively. “We are seeing NAND prices increase by more than 20 percent [auf sequenzieller Basis im ersten Quartal]in some areas even more,” he wrote. “Given that the company had already forecast positive gross margins in the December quarter, we should already be at mid-cycle gross margins in the March quarter, unlike storage competitors,” writes Moore continues.

Price target for Western Digital shares raised

He also assesses the prospects for Western Digital’s share price development as positive. He increased his price target for Western Digital shares from $52 to $73 and is confident in the shares, which are currently trading at $57.25 on the US stock exchange NASDAQ (closing price on January 31st). 2023), there is still an upward potential of 27.5 percent.

This makes Moore one of the biggest Western Digital bulls. Although the majority of analysts also recommend buying the share, with an average price target of $59.31 calculated on TipRanks, he is by far the most optimistic expert.

Editorial team

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