Morgan Stanley Calls Chip Selloff Overdone, Ranks GPU Compute First

Morgan Stanley says the recent semiconductor selloff has gone too far, with risk-reward improving across its coverage as analysts point to strong demand and clear business visibility.

The firm ranks GPU/XPU computing first among semiconductor groups and favors Nvidia and Broadcom in the category. Memory comes second, with Sandisk and Micron rated equally attractive.

CPUs rank last, though Morgan Stanley says demand remains strong and shortages persist. The firm expects CPU shortages to be shorter-lived than memory shortages and prefers AMD among CPU makers.