Morgan Stanley has upgraded two Greater China semiconductor stocks to Overweight from Equal-weight, attributing the changes to improving fundamentals in the memory market, particularly stronger pricing for DDR4 products, and to capacity expansion opportunities that could support future growth.
Winbond Electronics Corp (2344.TW)
Morgan Stanley upgraded Winbond to Overweight from Equal-weight and more than doubled its price target to NT$222.00 from NT$100.00. The bank also raised its 2026 earnings per share estimate by 23%, while lifting its 2027 and 2028 EPS projections by 65% and 94%, respectively. These revised forecasts factor in DDR4 pricing strength as well as new revenue opportunities from SiCap and SLC NAND product lines. The magnitude of the increases in the out-year EPS estimates indicates the bank expects accelerating profit growth as those new product lines gain traction.
Nanya Technology Corp (2408.TW)
Morgan Stanley upgraded Nanya to Overweight from Equal-weight and raised its price target to NT$380.00 from NT$278.00. The bank increased its 2026 EPS estimate by 15%, with 2027 and 2028 projections rising by 29% and 33%, respectively. The upgrade is driven by DDR4 pricing strength and a more constructive outlook for long-term agreements with server and enterprise solid-state drive customers. In addition, Nanya plans to add 5,000 wafers per month of DDR5 capacity starting in the third quarter of 2026, which the bank views as supportive of future growth.
The upgrades and forecast revisions reflect Morgan Stanley's assessment that near-term memory pricing and targeted capacity expansions will bolster earnings for companies exposed to DDR4 and specialized memory segments. For Winbond, the bank has also incorporated potential upside from SiCap and SLC NAND offerings, while for Nanya the projected benefits include both stronger DDR4 pricing and contract-driven demand from server and enterprise SSD buyers, plus a scheduled DDR5 capacity ramp.
Both companies were moved to an Overweight stance as Morgan Stanley expects these factors to contribute to stronger earnings trajectories across the forecast horizon included in the bank's models.