STMicro and Infineon boosted by Morgan Stanley comments - marketscreener.com

Morgan Stanley's recent commentary on the semiconductor industry has drawn market attention, particularly boosting the stock prices of STMicroelectronics and Infineon. As a globally renowned financial... Read original →

Morgan Stanley’s bullish stance on STMicroelectronics and Infineon reflects a strategic bet on power semiconductors as the backbone of electrification and energy transition. Technically, SiC and GaN devices are migrating from 800V EV architectures into industrial power systems, forcing upstream substrate capacity scaling and downstream packaging innovation. Regulatory pressures—especially the EU’s Net-Zero Industry Act and U.S. CHIPS Act—demand higher local manufacturing content, compelling both firms to accelerate European fab investments and inflate capex. Competitors like onsemi and ROHM will likely double down on OEM partnerships with Tesla or BYD to lock in design wins, possibly adopting IDM 2.0 models to capture foundry share. Over the next 12–24 months, while the broader chip market shifts from shortage to structural oversupply, automotive-grade power devices will retain pricing power due to stringent qualification barriers and decade-long product lifecycles—the core rationale behind Wall Street’s conviction.