Trade Whisperer@TradexWhisperer
$DRAM Morgan Stanley came to upgrade CPUs. Then quietly dropped "Memory has the best risk reward." lines in the report.
"Meanwhile $MU and $SNDK trade at 5.7x and 11.5x our CY26, with clear upside and remain a clear beneficiary of this [CPU] trend, as well as multiple other trends"
"To summarize, we are very much in agreement that agentic demand will drive higher CPU growth, but simply see memory as providing the best risk reward."
"In terms of long term agreements ... Prepaid revenue deals would be much harder to renegotiate than penalties. Our view is not based on the contracts themselves, but based on evidence that hyperscaler customers are thinking differently."
"We have preference for $AMD over $INTC, but see significantly better risk/reward in US memory stocks at this point."
