Morgan Stanley picks global stocks as its new top pick
Morgan Stanley has named a new top pick the “unique Nvidia proxy.” That’s Aspeed Technology, a chip designer with no manufacturer listed in Taiwan that Morgan Stanley has pointed to as Nvidia’s sole supplier of the motherboard management control processor, which is a key component. of the tech giant’s GB200 artificial intelligence graphics processor. Above all, the bank added, Aspeed is unlikely to face competition in the near future. “We see Aspeed as a unique play relative to NVIDIA, which is the sole BMC supplier for GB200 and the primary supplier to helps make Omniverse adoption a reality.” Omniverse is a 3D graphics collaboration platform created by Nvidia. “We’re also now seeing more smart city and smart factory customers win for Aspeed, including semiconductor factory and government projects. Despite current revenue contributions Since non-BMC business accounts for only 10% of total revenue, we hope this will support total revenue.” margin trends,” the bank added. Morgan Stanley said that with an average selling price of $100 per chip, it estimates the company can achieve a gross profit margin of 90%. According to Morgan Stanley, the outlook Positive on cloud capital spending is also expected to benefit the data center supply chain BMC processors used in data center equipment The bank estimates that level Cloud capital spending growth will be at 44% year-over-year in 2024, following earnings reports from four major hyperscalers – Meta, Microsoft, Amazon and Google large-scale data centers that provide massive computing power and do the bulk of the cloud computing work for AI applications Morgan Stanley said that expected growth is up 42 points in comparison growth of just 2% annually in 2023. The bank increased its price target for Aspeed to 5,150 Taiwan dollars ($159), implying an upside of about 20%. International investors want to buy the stock can go through their international broker or access stocks through exchange-traded funds. The stock makes up 2.2% of the Global X Emerging Markets ex-China ETF. – CNBC’s Michael Bloom contributed to this report.
