Morgan Stanley Raises Valuation of Two Taiwanese Chipmakers on Memory Market Strengthening
Investment bank Morgan Stanley has upgraded two major semiconductor companies from Equal weight to Overweight ratings, reflecting strengthened market perspectives for memory chips and price growth.
According to the bank's assessment, DDR4 memory prices are particularly strengthening, while growing demand in specialized segments is creating new opportunities.
Winbond Electronics Corp
Winbond Electronics Corp's rating was upgraded to Overweight, and the target price was increased from 100 to 222 Taiwan dollars.
Morgan Stanley has also significantly improved the company's earnings forecasts:
- 2026 EPS forecast increased by 23%
- 2027 increased by 65%
- 2028 increased by 94%
According to analysts' assessment, the growth is linked to DDR4 market stabilization and development of new products SiCap and SLC NAND.
Nanya Technology Corp
Nanya Technology Corp's rating was also upgraded to Overweight, with the target price increased from 278 to 380 Taiwan dollars.
EPS forecasts were also significantly improved:
- 2026 by 15%
- 2027 by 29%
- 2028 by 33%
The bank particularly views positively the company's long-term contracts with server and enterprise SSD customers.
Additionally, Nanya plans to expand DDR5 production starting from the third quarter of 2026, which will further strengthen future growth.
According to analysts' assessment, the memory chip market is gradually emerging from cyclical weakness and moving into a price recovery phase, reinforced by growing demand from AI and data centers.
