Morgan Stanley warns: Chipmakers’ pricing power faces greater pressure

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BlockBeats, July 10 — Lisa Shalett of Morgan Stanley urged investors to remain cautious about chip stocks. She said more signs suggest chipmakers have limited pricing power, meaning these stocks may have run too far up due to optimistic sentiment around spending on AI.

Shalett, Chief Investment Officer at Morgan Stanley Wealth Management, said: “We are seeing AI data center technology stacks being redesigned to include lower-cost in-house chips, and many hyperscale cloud service providers are now designing these chips themselves.”

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