[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.5K followers Created: 2025-07-15 11:33:53 UTC North American Quarterly Earnings Outlook: AI Momentum Remains Strong, But Inventory and Durability Spark Debate Morgan Stanley (J. Moore, 25/07/14) Morgan Stanley believes that AI supply and demand remain strong, but other sectors are affected by inventory replenishment and trade uncertainty. Some company managements are adopting a more conservative stance, and while market sentiment is strengthening, it still shows skepticism. AI Remains Core Growth Driver, NVDA, ALAB, MRVL Expected to Show Strong Performance Morgan Stanley emphasizes that AI investment remains the primary driving factor, optimistic about the performance across the entire chain from processors to networking, storage, and memory. NVDA is the top pick, while ALAB and MRVL have upside potential, especially ALAB, which maintains strong fundamentals amidst weak market sentiment. Hyperscale cloud service providers are expected to continue revising up their Blackwell procurement plans, driving sustained expenditure growth in 2026. Partial Inventory Replenishment Driven by Tariffs, Durability Remains Major Market Debate Point Recent inventory growth is partly in response to tariff uncertainties. After inventory destocking in 1Q, 2Q/3Q entered a replenishment phase. Although demand is not strong, customers need to maintain higher buffer inventories. In contrast, conservative statements from management have led to stock price pressure; Morgan Stanley tends to favor more conservative players as more noteworthy. 2026 May Face Mismatch Between Chip Shipments and Server Sales Some Asian companies anticipate that 2026 might experience a phase where "chip shipments lead server installations," fueling skepticism about the market's short-term strength but long-term sustainability. Despite this, Morgan Stanley believes that strong demand for non-server forms and accelerated rack shipments will alleviate this pressure, maintaining an optimistic stance. Analog Chips and Consumer Electronics Show Signs of Recovery, But Sustainability of Inventory Replenishment Unclear Analog chip companies like ADI and NXPI are expected to show recovery, but there is debate in the market about the durability of their recovery. The PC and smartphone supply chains are also in an inventory replenishment period, but PCs are already showing signs of slowing down. Smartphones have not yet seen clear destocking signals, but investors are generally cautious about this sector. Overall Outlook Positive But Uncertainties Remain Morgan Stanley believes that this quarter's earnings reports will generally be positive, with AI remaining the strongest theme. It also favors representative companies in the analog and storage sectors. However, confidence in the outlook still diverges across different sectors, emphasizing that investors should adopt a more cautious attitude toward the recent strong market rally. XXXXX engagements  **Related Topics** [Sentiment](/topic/sentiment) [momentum](/topic/momentum) [coins ai](/topic/coins-ai) [quarterly earnings](/topic/quarterly-earnings) [morgan stanley](/topic/morgan-stanley) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/Jukanlosreve/status/1945084400833831013)
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Jukan @Jukanlosreve on x 22.5K followers
Created: 2025-07-15 11:33:53 UTC
North American Quarterly Earnings Outlook: AI Momentum Remains Strong, But Inventory and Durability Spark Debate
Morgan Stanley (J. Moore, 25/07/14)
Morgan Stanley believes that AI supply and demand remain strong, but other sectors are affected by inventory replenishment and trade uncertainty. Some company managements are adopting a more conservative stance, and while market sentiment is strengthening, it still shows skepticism.
AI Remains Core Growth Driver, NVDA, ALAB, MRVL Expected to Show Strong Performance
Morgan Stanley emphasizes that AI investment remains the primary driving factor, optimistic about the performance across the entire chain from processors to networking, storage, and memory. NVDA is the top pick, while ALAB and MRVL have upside potential, especially ALAB, which maintains strong fundamentals amidst weak market sentiment. Hyperscale cloud service providers are expected to continue revising up their Blackwell procurement plans, driving sustained expenditure growth in 2026.
Partial Inventory Replenishment Driven by Tariffs, Durability Remains Major Market Debate Point
Recent inventory growth is partly in response to tariff uncertainties. After inventory destocking in 1Q, 2Q/3Q entered a replenishment phase. Although demand is not strong, customers need to maintain higher buffer inventories. In contrast, conservative statements from management have led to stock price pressure; Morgan Stanley tends to favor more conservative players as more noteworthy.
2026 May Face Mismatch Between Chip Shipments and Server Sales
Some Asian companies anticipate that 2026 might experience a phase where "chip shipments lead server installations," fueling skepticism about the market's short-term strength but long-term sustainability. Despite this, Morgan Stanley believes that strong demand for non-server forms and accelerated rack shipments will alleviate this pressure, maintaining an optimistic stance.
Analog Chips and Consumer Electronics Show Signs of Recovery, But Sustainability of Inventory Replenishment Unclear
Analog chip companies like ADI and NXPI are expected to show recovery, but there is debate in the market about the durability of their recovery. The PC and smartphone supply chains are also in an inventory replenishment period, but PCs are already showing signs of slowing down. Smartphones have not yet seen clear destocking signals, but investors are generally cautious about this sector.
Overall Outlook Positive But Uncertainties Remain
Morgan Stanley believes that this quarter's earnings reports will generally be positive, with AI remaining the strongest theme. It also favors representative companies in the analog and storage sectors. However, confidence in the outlook still diverges across different sectors, emphasizing that investors should adopt a more cautious attitude toward the recent strong market rally.
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