Morgan Stanley’s updated view
According to Odaily, Morgan Stanley has raised its target price for SIMO to $400. The headline conclusion is that demand from AI servers is changing the way the market should think about the NAND cycle. Rather than following a more familiar semiconductor boom-bust pattern, the storage market may now be entering a longer and more structurally supported phase shaped by AI infrastructure demand.
NAND tightness may last through 2027
The source note states that the NAND shortage is expected to continue into 2027. That is the central supply-demand signal from the report. It implies that the current imbalance is not being treated as a brief disruption or a simple inventory reset, but as a condition that may persist for multiple years across the broader memory and storage value chain.
Supply risks are not gone even in 2028
Importantly, the report also says supply risks are still not fully gone in 2028. In practical terms, Morgan Stanley appears to be arguing that even after several years of tightness, the NAND market may remain vulnerable to constraints. This extends the timeline for potential pricing support and keeps focus on producers, controller vendors, and related semiconductor companies exposed to storage demand.
AI servers are changing the valuation framework
The broader implication is that AI servers are becoming a critical new demand engine for NAND. That matters because the historic storage cycle was often discussed through the lens of consumer electronics and conventional data-center demand. If AI server buildouts are now a primary driver, investors may need to reassess how they value companies tied to NAND and adjacent semiconductor segments. The source item does not provide further earnings assumptions, shipment figures, or model details beyond the target-price change and the timing of the shortage outlook.