Morgan Stanley has adopted a more constructive stance on U.S.
IT hardware, arguing that rising memory-chip costs are encouraging companies to accelerate infrastructure purchases rather than postpone spending
The firm upgraded its industry view to In-Line from Cautious and revised several individual stock ratings as demand for servers and storage strengthens. Morgan Stanley upgrades IT hardware outlook Analyst Erik Woodring said Morgan Stanley had raised its view of the U.S. IT hardware industry after reassessing the impact of elevated component prices on enterprise technology spending.
The firm upgraded Hewlett Packard Enterprise and Pure Storage to Overweight, while NetApp was lifted to Equal-weight. Teradata, meanwhile, was downgraded. The changes reflect a broader shift in Morgan Stanley’s expectations for enterprise hardware demand as businesses respond to persistently higher memory prices and expanding artificial intelligence infrastructure requirements.