Morgan Stanley: Semiconductor sector correction may end in mid-November

Morgan Stanley stated that the pressure faced by semiconductor stocks may ease next month. The strategist team led by Mike Wilson maintains its forecast for the S&P 500 to reach 8,000 points by year-end, but also notes that semiconductor stocks, as a key sector, may find support at levels much lower than their current positions. The team said that as the market questions when AI-driven revenue opportunities will materialize and how large they will be, the semiconductor sector and other industries benefiting from capital spending have become the epicenter of financing concerns. Considering more financing activities may occur in the future, the team remarked: "It is perfectly normal for the market to focus on this supply pressure, and these worries are likely to persist until financing is completed." They believe the good news is that the semiconductor sector's adjustment has entered the "final stage", and is expected to finish by mid-November; the bad news, according to their technical analysis and comparisons with the once-hot silver market, is that the sector may decline a further 10% to 15%. The Philadelphia Semiconductor Index may drop to around 9,500 points in the near future.