Morgan Stanley raised target prices for three NAND stocks, showing divergence at both ends of AI consumption.

Deep Tide TechFlow news, July 3 - According to Tide Direction Research, Morgan Stanley released a NAND industry outlook report on July 2, estimating that AI-related NAND demand will grow approximately 60% year-over-year in 2027, creating a 9% supply-demand gap that is expected to persist until 2027. The report also noted that after consecutive price increases in the second quarter, there have been actual order cuts in the consumer electronics segment, with rising inventory levels at module manufacturers and channel distributors. Consumer-grade product pricing may have peaked, while server-side demand remains strong driven by long-term supply agreements.

In this update, the target price for Longsys was raised from RMB 300 to RMB 673, and for Phison Electronics from NT$ 2,248 to NT$ 2,588, with both maintaining a neutral rating. Silicon Motion Technology's target price was raised from $155 to $400, with an upgraded rating, citing expansion in enterprise SSD and AI server boot drive businesses. Morgan Stanley believes the key variable for whether supply and demand will tighten in 2028 is the pace of capacity expansion at Chinese manufacturer YMTC.