IMPORTANT POINTS:
- Morgan Stanley named 6 stocks associated with different processes within the semiconductor industry.
- These comments come as the bank believes that a “monumental change” is underway in the segment, with the arrival of a “3D gate-all-around architecture.”
- In that sense, they chose some names little known to most investors and other renowned global companies such as Intel, Samsung and TSMC.
Morgan Stanley anticipated that a “monumental shift” is occurring in the chip industry, so it named 6 stocks that could benefit.
According to the bank, the sector is in a transition towards a “3D architecture”, which represents an opportunity of more than 10 billion dollars for the industry by 2030.
“The transition to ‘full’ 3D architecture marks a monumental shift for cutting-edge logic chip architectures. The transition introduces a significantly improved 3D structure on which next-generation (AI) chips will be built and will lead to a “fundamental change when it comes to performance and electrical efficiency.”Morgan Stanley.
The bank’s 6 recommended actions
Here are some of the stocks that Morgan Stanley expects to benefit in the coming years:
Lam Research (LRCX): It is rated as a buy by the bank. Analysts say it is ready to benefit from the change occurring in the industry.
VAT Group: It is a Swiss company that manufactures vacuum valves and related services. It is also rated as a buy.
ASML Holding (ASML): This company is Dutch and allows chipmakers to produce patterns in silicon with lithography, also received an overweight rating.
Among the most recognized firms that the bank named are: Intel, Samsung and TSMC, since they all have their sights set on starting to venture into 3D chip architecture.
“Although it is too early to predict the final outcome, the potential of revitalized competition should be a tailwind for spending on advanced logic [wafer manufacturing equipment]. Positioning will depend on progress made in FY24, where production will still largely be in the testing (pilot) phase,” the analysts wrote.
