Morgan Stanley Backs 4 Hardware Stocks as Memory Chipflation Extends for 2 More Years
Updated
Updated · Yahoo Finance · Aug 11
Morgan Stanley Backs 4 Hardware Stocks as Memory Chipflation Extends for 2 More Years
1 articles · Updated · Yahoo Finance · Aug 11
Summary
Erik Woodring said enterprises are accelerating purchases of PCs, servers and storage arrays to lock in prices and avoid shortages, making memory chip inflation a multi-year hardware tailwind.
Morgan Stanley named Hewlett Packard Enterprise, Everpure, TD Synnex and Lenovo as preferred plays, arguing server and storage exposure could drive further earnings upside.
Woodring said hardware stocks have already risen more than 100% since early 2025 and now trade around 25 times earnings, nearly double the prior peak, leaving less room in richly valued names.
JPMorgan strategist Jay Kwon also expects the memory shortage to last at least 2 years, while Sandisk said it now has more than 4 years of customer demand visibility.