Morgan Stanley expects chip sales to rise in 2024 and highlights Samsung and SK hynix. Financial expert provides insight.

Morgan Stanley expects chip sales to rise in 2024 and highlights Samsung and SK hynix. Financial expert provides insight.

According to a report by www.finanzen.net,

In 2023, the semiconductor market received increased attention as a result of the AI ​​hype. Despite delivery bottlenecks and weak sales, the market struggled. However, Morgan Stanley expects things to look up in 2024 and particularly highlights Samsung and SK hynix.

Increasing chip sales in 2024

Morgan Stanley expects a cyclical market recovery in 2024 and has adjusted its expectations for rising memory chip prices upwards. According to the bank, memory chip stocks in the US are currently much cheaper than in previous cycles. Significant demand and accelerated growth will drive the market. The consulting firm Gartner predicts chip sales will grow by around 17 percent.

Impact on the market and consumers

The increase in inventories in the downstream production stages and the ongoing supply-demand imbalance will lead to sharply increasing chip prices in the first quarter of 2024. This could have an impact on end-user prices in various electronic devices as the increased chip prices may be passed on.

Samsung shares and SK hynix shares with significant upside potential

Morgan Stanley is optimistic about the performance of memory chip stocks in 2024, highlighting Samsung and SK hynix. The investment bank advises overvaluing both companies and issues price targets that imply significant upside potential for the shares. The companies are expected to be driven by growth in their market share of HBM chips and improvements in raw material prices.

Overall, forecasts from Morgan Stanley and Gartner suggest that 2024 could be a promising year for the memory chip market, with rising sales, prices and stock values. These developments could have a positive impact on companies, the market and consumers.