Morgan Stanley Names Nvidia, Broadcom Top Picks As Semiconductor Stocks Fall 9% in Worst Week Since March 2025

According to Morgan Stanley, on Monday analyst Joseph Moore said the firm's preferred AI investments remain Nvidia Corp. (NVDA) and Broadcom Inc. (AVGO), while identifying memory stocks as a "compelling entry point" following the recent pullback. The VanEck Semiconductor ETF (SMH) fell 9% last week, its worst single-week performance since March 2025.

Mizuho analyst Vijay Rakesh said there is still "a lot of gas left in the tank," citing AI capital expenditures, expanding power deployments and supply gaps as factors supporting semiconductor demand beyond 2028. JPMorgan similarly stated semiconductor stocks "should soon start to find a bid" as additional supply is unlikely to materially alter the supply-demand balance before 2028.