Although there has been a "full correction" in some areas of the semiconductor industry, Morgan Stanley, an investment company, says the industry as a whole is unlikely to feel real pain until next year.

A team of analysts led by Joseph Moore pointed out that there could be inventory adjustments in the semiconductor sector. Although there has been "some weakness" in the market, the inventory upheaval "may be widespread in all markets".

After in-depth research, the team found that there were demand problems in this area, mainly in the consumer electronics market, especially PC games and console games. It is understood that demand in areas such as Malaysia and the Philippines still shows negative growth.

Among the specific companies investigated, Morgan Stanley will$Advanced Micro Devices (AMD.US)$Earnings per share are expected to fall from $4.24 to $4.02 in 2022 and to $4.40 from $4.72 in 2023.

The bank pointed out that AMD has a strong market share, but lowered its expectations for companies led by Lisa su. However, the company also pointed out that AMD's Genoa series is being launched as scheduled, which should help the company continue to drive market share growth because of its main competitors$Intel (INTC.US)$The Sapphire Rapids chipset has been delayed.

"while there is some anxiety about the need for these expectations to decline, we note that this is still higher than we initially expected in 2022," Morgan Stanley's analyst wrote. "

It is worth mentioning that earlier this month, Stifel, an investment company, began to focus on AMD, highlighting its strong execution and its "growing intellectual property portfolio".

About$Qualcomm (QCOM.US)$The company recently said that design revenue from its automotive business had risen from $19 billion to $30 billion. Morgan Stanley said the company's valuation in the fourth quarter and next year was expected to be "slightly lower than widely expected", but the valuation of the stock was "very attractive" and there were signs that the recent price rise should continue.

In addition, Morgan Stanley said$GlobalFoundries (GFS.US)$GlobalFoundries is likely to continue to benefit from continuing trade tensions, noting that the shortage of contract manufacturers helps to provide greater visibility to its customers, as the company has become "the preferred partner for transforming the business model".

Morgan Stanley added that$Western Digital (WDC.US)$The NAND business is likely to continue to see a "very weak" trend, and the company is expected to lose money in the December quarter because it is the company facing the "most significant challenge" in the near future.

by contrast,$Microchip Technology (MCHP.US)$It is benefiting from the current environment to help its business deleverage. Morgan Stanley believes that when the economic downturn hit, the company's performance was "consistent" with other broad-based companies. At present, the microchip has been able to generate enough cash, which may make it good for investors.

For$Intel (INTC.US)$和$Micron Technology (MU.US)$Companies with higher spending are considered "inexpensive" in terms of historical price-to-earnings ratios and book value, but they are even more expensive in terms of free cash flow.

Last,$Lam Research (LRCX.US)$和$Applied Materials (AMAT.US)$Equipment stocks such as these may face a "more difficult situation", but even if fab equipment spending is expected to fall by 20 to 25 per cent next year, these companies are likely to be able to maintain cash flow.