Analyst sees significant upside in shares as business separation looms

  • Morgan Stanley analyst Joseph Moore has elevated Western Digital Corp.’s stock to his No. 1 recommendation
  • Moore sees more than 25% upside in shares of Western Digital
  • He believes the upcoming separation of the memory- and hard-drive chip company will translate to value for investors
  • Improvements in NAND memory trends are seen as a tailwind
  • Moore has a mixed view of the longer-term NAND cycle
  • He upped his price target on Western Digital stock to $73, representing 27% upside
  • Moore still likes Nvidia’s stock, but notes potential headwinds for AI stocks

Morgan Stanley analyst Joseph Moore has chosen Western Digital Corp. as his top chip pick, surpassing Nvidia Corp. Moore believes that Western Digital has the potential for more than 25% upside in its shares, citing an "extremely compelling" valuation gap and the upcoming separation of the memory- and hard-drive chip company. He also highlights improvements in NAND memory trends as a positive factor. However, Moore has a mixed view of the longer-term NAND cycle. He has increased his price target on Western Digital stock to $73, representing a 27% upside. Despite this, Moore still likes Nvidia’s stock and acknowledges its market leadership, but notes potential headwinds for AI stocks.

Public Companies: Nvidia Corp. (NVDA), Western Digital Corp. (WDC)
Private Companies:
Key People: Joseph Moore (Morgan Stanley analyst)

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Factuality Level: 7
Justification: The article provides information about Morgan Stanley analyst Joseph Moore’s change in recommendation from Nvidia to Western Digital as his top pick in the chip sector. It includes quotes from Moore explaining his reasoning and highlights the potential upside in Western Digital’s stock. The article also mentions improvements in NAND memory trends and the potential headwinds for AI stocks. Overall, the article presents information based on the analyst’s perspective and provides some data to support the claims made.

Noise Level: 4
Justification: The article provides some analysis of the chip sector and the potential for Western Digital’s stock. However, it contains some irrelevant information about AI stocks and does not provide much evidence or data to support its claims.

Financial Relevance: Yes
Financial Markets Impacted: Morgan Stanley’s change in chip pick may impact the stock prices of Nvidia Corp. and Western Digital Corp.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Morgan Stanley’s change in chip pick, which could have an impact on the financial markets and the stock prices of Nvidia Corp. and Western Digital Corp. However, there is no mention of any extreme event.

Reported publicly: www.marketwatch.com