Morgan Stanley Warns: The "Cheapest" Storage Stocks Are Often the Most Dangerous at Cycle Peak

Morgan Stanley warns that while the AI-driven memory chip supercycle continues, investment logic is shifting. Stock prices have priced in optimistic earnings expectations, limiting upside. The core risk is that strong fundamentals mask peak-cycle dangers. Historically, memory stocks peak months before earnings do, as high profits make valuations appear deceptively cheap. Investors should watch for shifting supply-demand dynamics.

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