Major Bank Ratings | Morgan Stanley: The semiconductor sector's rally has not yet peaked; Morgan Stanley raises target prices for IonQ, Microchip Technology, and GlobalFoundries.

Glonghui, May 9 | Morgan Stanley released a report stating that even though the iShares Semiconductor ETF (SOXX-US) has surged nearly 57% so far by 2026, the rally in the sector has not yet peaked, and the true profit drivers will take over to push share prices even higher. The report emphasizes that the semiconductor industry is shifting from growth driven solely by the AI concept to a recovery fueled by both AI and traditional cyclical demand. Morgan Stanley specifically highlighted three representative companies in the fields of quantum computing, microcontrollers, and foundry—IonQ, Microchip Technology, and GlobalFoundries. Morgan Stanley raised IonQ’s target price from $38 to $47. Although IonQ currently has a relatively small base with quarterly revenue between $11 million and $12 million, Morgan Stanley believes its path to revenue in 2026 has become much clearer. Morgan Stanley significantly raised Microchip Technology’s target price from $69 to $92, noting the company is poised to convert recovering demand into faster profit growth. Morgan Stanley raised GlobalFoundries’ target price from $47 to $58, stating that through stable chip pricing and its leading position in silicon photonics technology, the company has built a more sustainable product portfolio.