Morgan Stanley changed its previous cautious stance and raised the US IT hardware industry rating. The reason is that “chip inflation,” which continues to soar in memory chip prices, not only does not stifle demand, but instead forces companies to speed up procurement, creating a wave of “missing out on procurement phobias.” However, the bank also warned that the current market is mainly cyclically driven, and once the profit increase cycle peaks, it will once again become cautious. In his latest report, Morgan Stanley analyst Eric Woodlin raised the outlook for the US IT hardware industry from “cautious” to “on the same level as the market,” and bluntly admitted that it had previously “taken the wrong position on corporate hardware transactions.” The bank once thought that record component price inflation would quickly kill the recovery in hardware spending, but the reality was quite the opposite.

Morgan Stanley changed its previous cautious stance and raised the US IT hardware industry rating. The reason is that “chip inflation,” which continues to soar in memory chip prices, not only does not stifle demand, but instead forces companies to speed up procurement, creating a wave of “missing out on procurement phobias.” However, the bank also warned that the current market is mainly cyclically driven, and once the profit increase cycle peaks, it will once again become cautious. In his latest report, Morgan Stanley analyst Eric Woodlin raised the outlook for the US IT hardware industry from “cautious” to “on the same level as the market,” and bluntly admitted that it had previously “taken the wrong position on corporate hardware transactions.” The bank once thought that record component price inflation would quickly kill the recovery in hardware spending, but the reality was quite the opposite.