• Semiconductor stocks are underperforming the broader market today after a cautious note from Morgan Stanley forecast the coming end to the memory cycle and downgraded Micron Technology to the sidelines.
• The Philadelphia Semiconductor Index is down 1.1% compared to the slightly green return for the broader tech sector(NYSEARCA:XLK).
• Top decliners in the index also include semiconductor equipment companies Lam Research, KLA-Tencor and Applied Materials.
• Micron's NAND memory peer Intel is also trading down despite Morgan Stanley's more positive view on NAND versus DRAM. Late last year, Intel announced plans to sell its NAND memory and storage business to SK hynix for $9 billion, but the deal isn't expected to close until later this year.
• Earlier this week, Micron's CFO said the company was leaving the current quarter with historically low days of inventory as component shortages continue to hit the industry.
• Background: Micron stock dips after Morgan Stanleydowngrade on coming memory downturn.