Morgan Stanley Warns Memory Stocks Look Cheapest Near Cycle Peak

The striking part is not the valuation call but the mechanism: Morgan Stanley is arguing that cheap forward multiples in memory are a symptom of the cycle top, not a reason to own the group. That inverts the usual reflex that low earnings multiples signal value, and it lands on a sector where consensus estimates have already been revised up sharply. The open question is whether DRAM contract pricing can deliver the sequential increase Morgan Stanley frames as necessary to validate further gains — and whether HBM pricing, already far above prior peaks, holds if contract momentum stalls.